The IRS requires that employers complete W-2 (Wage and Tax Statement) forms for all employees in order to report taxable wages to the government. Employees can receive a hard copy of their W-2, or it can be sent electronically. As more organizations have looked to eliminate paper processes, the number of W-2s provided to employees digitally has increased. Within the last decade, online W-2 preparation and filing have grown as the demand for the paper form has decreased.
Filing a W-2 online is cost-effective, saves time and reduces the probability of government audits and manual errors. Plus, employers can eliminate the hassle of printing paper copies, purchasing postage and stuffing envelopes by hand.
Employers can also save time by uploading their employee data online, preparing their forms electronically and submitting them to the Social Security Administration (SSA) from the convenience of their web browser. Numerous prompts within online preparation systems ensure compliance with current tax rules and perform the complicated calculations. They also catch data entry errors, lessening the probability of audits and penalties.
To make the process even more efficient, companies should look into outsourcing payroll processing and tax filing to protect against compliance missteps.
Learn more about the benefits of outsourcing payroll processing and tax filing.