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Off the W-2 Hook?

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in Office Management,Payroll Management

Question: Our company will soon begin outsourcing the payroll to a new third-party provider. It has a feature that allows em­­ployees to view their check stubs and W-2s by logging onto its website. We were told that the company will be saving a bundle because employees can now access their W-2s online. Does the IRS allow this?

Answer: Whether employees can receive their pay stub information electronically is controlled by state law, not the IRS.

As far as W-2s go, sorry, you’re not off the hook that quickly. The IRS has rather elaborate regulations regarding the electronic delivery of W-2s. Among other requirements, employees must consent to electronic delivery and prove they can access their W-2s electronically and employer disclosures are required.

So if employees have specifically consented to receiving their W-2s electronically, you’ve met your responsibilities. Employees who don’t consent to electronic delivery must be provided with paper copies, so you’d probably still have to provide some paper W-2s.

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