Last week, the Internal Revenue Service (IRS) issued a reminder to employers and other businesses to file Tax Year 2022 Form W-2 and other wage statements by January 31, 2023. Employers must also furnish Form W-2 to each employee for the 2022 Tax Year by January 31, 2023.
Employers can hand deliver W-2s to the employee at work, mail W-2s to the respective employee's address on file, or make the W-2 available electronically.
Hand Delivery
If distributing the W-2 by hand, employers should consider having employees sign and date an acknowledgement of receipt. It may be helpful to communicate to employees ahead of time when and where W-2s will be distributed. Employers should plan ahead to be able to mail W-2s by January 31 if they are not able to distribute all W-2s by hand in time.
If sending the W-2 by mail, it must be properly addressed and postmarked on or before January 31, 2023 to be in compliance with the due date. Employers may also consider sending the W-2 via certified mail and requesting return service if undeliverable.
If the W-2 is returned to the employer, do not open the envelope! The sealed envelope with the address on file for the employee, proper postage, and postmark dated on or before January 31 is evidence of the employer’s good faith attempt to furnish the W-2 by the deadline. Employers should make a photocopy or take a photo of the sealed envelope for their records.
Verify the employee's address by checking your records and/or contacting the employee immediately to confirm their address. For returned W-2s for former employees, contact them through other means such as phone, text, or email as soon as possible to confirm their address.
Put the original, sealed envelope in a new envelope with the correct address, even if it was correct on the original, and resend it to the employee or former employee as soon as possible. If the employee or former employee prefers, consider making arrangements for them to pick up the W-2 in person.
If the employee or former employee provided an updated address, don’t forget to update your records with the new address!
Electronic Delivery
If providing the W-2 electronically, employers must follow IRS Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.
Employers must receive the employee’s consent to receive the W-2 electronically, and the consent must be made “electronically in a way that shows that he or she can access the statement in the electronic format in which it will be furnished.” Additionally, the consent should indicate the duration for which the employee is agreeing to receive the W-2 electronically, so employers should ensure the consent is current. If the employee does not consent, then the employer must inform them that they will receive a paper W-2.
If the employer’s electronic notice to the employee of the electronic W-2’s availability is returned as undeliverable, the employer has 30 days to provide notice to the employee by mail or in-person.
What to do if I can’t reach a former employee?
Employers should make all reasonable effort to contact former employees whose W-2s are returned as undeliverable, and be sure to document such efforts. Even if all efforts fail, employers should keep copies of written communications, use certified mail to track delivery, and log attempts to reach the employee by phone. Employers should keep any unclaimed W-2s on file for at least four years, as required by the IRS for all employment tax records.
Former employees often contact their past employers to request a copy of their W-2 as the tax filing deadline approaches. To ensure proper delivery, employers should consider having the former employee provide a signed, written request with the correct address, or make arrangements for the employee to pick up the W-2 in person. If the W-2 was originally sent via hardcopy, employers should give the employee the original, sealed envelope as mentioned above.
What if an employee needs a replacement W-2?
Employers are required to provide a replacement W-2 if requested by an employee or former employee. Employers may charge a nominal, administrative fee for replacements, but may want to consider factors such as whether the employee misplaced the original W-2 or if they never received it due to the employer’s error.
Employers should consult their tax professional with their tax-related questions, including guidance on when and how to use Form W-2C.