Can You Email W-2 Forms to Employees?

W-2 forms detail annual wages and withheld taxes. Employers commonly inquire whether these forms can be delivered electronically instead of through traditional mail. While paper forms remain a standard, the IRS does permit electronic delivery of W-2s under specific conditions. This digital option can streamline distribution.

IRS Requirements for Electronic W-2 Delivery

Employers must satisfy conditions to furnish W-2 forms electronically, ensuring compliance with IRS regulations. A primary requirement involves obtaining affirmative consent from each employee who wishes to receive their W-2 digitally. This consent must be provided electronically in a manner that confirms the employee’s ability to access the form in its electronic format.

Before obtaining consent, employers must provide employees with a clear statement outlining disclosures. These disclosures include informing the employee that a paper W-2 will be provided if consent is not given. The employer must also specify the scope and duration of the consent, such as whether it applies to all future W-2s. Employees need to be informed about the hardware and software requirements necessary to access, print, and retain the electronic W-2.

The disclosure statement must detail the procedure for requesting a paper W-2 and whether such a request withdraws consent. Employees must also understand how to withdraw their consent, including the effective date and the method by which the employer will confirm the withdrawal. A withdrawn consent does not apply to W-2s issued electronically before its effective date. Employers should also inform employees about any conditions under which electronic W-2s will no longer be furnished, such as termination of employment, and procedures for updating contact information.

Security measures are important when delivering W-2s electronically. Employers must ensure the protection and integrity of the electronic W-2 information. This includes safeguarding the data against unauthorized access and ensuring it cannot be corrupted during transmission. Measures typically involve using encryption and secure platforms.

Employees must have continuous access to their electronic W-2s for a specified period. The IRS generally requires that electronic W-2s be accessible from January 31 of the tax year through October 15 of the same calendar year. This ensures employees have time to retrieve and print their forms. If electronic delivery fails or an employee withdraws consent, the employer is still required to provide a paper W-2 form.

Executing Electronic W-2 Distribution

Once IRS requirements for electronic delivery are met, employers can distribute W-2 forms digitally. The initial step involves preparing the W-2 data in a secure electronic format. This often means converting W-2 information into password-protected Portable Document Format (PDF) files or populating a secure online portal.

Employers can utilize a dedicated online portal, which allows employees to log in securely and retrieve their W-2s. Other secure methods include encrypted email or secure file transfer services, designed to protect sensitive financial information.

Implementing notification protocols is another key procedural step. Employers must notify employees when their electronic W-2s are available for access. This notification should include clear instructions on how employees can log in or access their documents.

Ensuring accessibility is an ongoing responsibility after distribution. Employers should provide clear guidance on how employees can easily access and print their electronic W-2s. This may involve offering technical support for retrieval or viewing issues.

Employers should keep comprehensive records of employee consents for electronic delivery and any communications related to W-2 distribution. This includes documenting successful electronic W-2 delivery and instances where paper forms were provided. The IRS generally requires employers to retain employment tax records, including W-2s, for at least four years after filing.