Can You Email W2 Forms to Employees?

Providing employees with their annual Wage and Tax Statement, Form W-2, is a mandatory responsibility for employers. While traditional paper forms remain common, electronic delivery methods offer efficiency and cost savings. Employers often explore options like emailing W-2s, which presents both opportunities and specific compliance considerations. This article explores the regulations and best practices for electronic W-2 delivery, especially via email.

IRS Rules for Electronic W-2 Delivery

The Internal Revenue Service (IRS) permits employers to furnish W-2 forms electronically, but strict guidelines must be followed to ensure compliance. These requirements are detailed in Treasury Regulations Section 31.6051-1(j). Employers must obtain affirmative consent from each employee before providing their W-2 electronically. This means the employee must actively agree to receive the form in an electronic format, rather than simply failing to object.

Before or at the time of obtaining consent, employers must provide several disclosures. These include informing the employee that a paper W-2 will be furnished if consent is not given. Employers must also specify the hardware and software requirements needed to access, print, and retain the electronic W-2. The scope and duration of the consent must be clearly communicated.

Employees must be informed of the procedure for obtaining a paper copy of their W-2 after consenting to electronic delivery. A clear method for employees to withdraw their consent at any time must be provided, along with information on how this withdrawal becomes effective. A withdrawal of consent does not apply to W-2s already furnished electronically.

Employers must ensure the electronic W-2 is accessible to the employee for a specific period, typically until October 15 of the year following the calendar year to which the W-2 relates. The electronic form must also be printable, allowing employees to create a physical copy. Employers must ensure the security, integrity, and confidentiality of the electronic W-2 data.

Specific Considerations for Emailing W-2s

Directly emailing unencrypted W-2 forms is not a secure or compliant method. W-2 forms contain sensitive personal information, including Social Security numbers, income, and tax withholdings. Due to the security risks of standard email, enhanced measures are necessary if email is part of the delivery process.

If an employer uses email, the affirmative consent obtained from the employee must specifically acknowledge receipt via email and address associated risks. Valid electronic consent methods include using an employee portal with an electronic signature, which provides a verifiable record. Simply relying on a reply email for consent may not meet IRS requirements.

Enhanced security measures are important to protect sensitive W-2 data when email is involved. Encryption is necessary for attachments containing W-2 data. Employers can use secure, encrypted links to a portal where the W-2 can be accessed, rather than sending the document directly as an email attachment. If links are used, access should be secured with measures like multi-factor authentication or unique login credentials.

Employers also must educate employees on distinguishing legitimate W-2 emails from phishing attempts. W-2 phishing scams are a threat, often involving criminals impersonating executives to trick employees into revealing sensitive information. Clear communication about the expected format and sender of official W-2 notifications helps mitigate these risks.

Employers should also have a clear process for handling bounced or undeliverable W-2s, often reverting to paper delivery. The email itself should contain instructions and contact information, but not the W-2 data directly unless securely encrypted and password-protected.

Employee Access and Security Best Practices

Once an electronic W-2 is made available, employees play a role in protecting their sensitive financial information. When accessing an electronic W-2, employees should only click on secure links provided by their employer. They should use strong, unique passwords for any portals and ensure credentials are entered only on secure websites. Looking for “https://” in the URL and a lock icon in the browser helps confirm a secure connection.

Employees should always verify the authenticity of an electronic W-2 or the email providing access. This includes checking the sender’s email address for inconsistencies and being wary of suspicious links or attachments. Cross-referencing with the employer’s known communication methods helps confirm legitimacy. If an email seems suspicious, it is best to report it to the employer or forward it to [email protected].

Protecting W-2 information once accessed is important. Employees should avoid sharing login details and save downloaded W-2s to secure, password-protected locations on their devices. If a physical copy is printed, it should be kept in a secure place and shredded when no longer needed. Using secure networks, especially when accessing sensitive data, is also advisable.

Employees have the right to withdraw consent for electronic delivery if they prefer a paper copy. Employers must provide clear procedures for this withdrawal. If an employee suspects a fraudulent W-2 email or unauthorized access to their information, they should immediately contact their employer and consider reporting the incident to the IRS.

Alternative W-2 Delivery Methods

Beyond direct email, employers use several other compliant methods to furnish W-2 forms to employees. The most traditional method involves sending paper W-2s via postal service. This remains a reliable and accessible option, serving as the default for employees who do not consent to electronic delivery. Employers must ensure paper forms are properly addressed and mailed by the January 31 deadline.

Many employers now use secure online portals for W-2 delivery. These dedicated employee portals allow workers to access, download, and print their W-2s securely. These platforms offer enhanced security features, such as encryption and multi-factor authentication, making them a more secure alternative to direct email attachments. Online portals also provide employees with convenient 24/7 access to current and prior year W-2s.

Electronic delivery, whether through portals or other secure means, offers benefits such as earlier access for employees compared to mailed forms. It can also reduce the risk of forms being lost or stolen in the mail. For employers, electronic methods can lead to cost savings by reducing printing and postage expenses. Adherence to IRS regulations remains the primary consideration for all W-2 delivery options.