Employee Participation for Electronic W-2's Soars
A Sign of the Times
JAT has been offering employers the ability to electronically
distribute W-2's since 1999. Throughout this time, we've seen steady
increases for the number of employees who choose to receive their
W-2 electronically, in the 2 to 4 years after offering this benefit.
The first year a company offers electronic distribution,
we expect 15 to 20 percent of their employees to participate (assumes
effective communication to employees via email, paycheck stubs or
newsletters). However, one of our clients had 62 percent of their
employees consent to receive their W-2 online in 2004. This resulted
in a tremendous cost savings compared to the cost of printing and
As more employees become Internet savvy or hear from
other satisfied employees about receiving their W-2 electronically,
the percentage of employee participation grows. We even had one
technology company experience an 85 percent employee participation
rate. However, those results are unusual and were attributed to
the high number of computer users in that organization.
Because an employee's consent is valid for all subsequent
tax years, employers are enjoying a "snow ball" effect for their
With electronic W-2 distribution rapidly becoming the
standard method, it's nice to see that the companies who offer this
service are seeing a significant return on their investment.
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more information on JAT's product e-PRINTVIEW.