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 mailing.

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 tenured employees.

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.

Click here for more information on JAT's product e-PRINTVIEW.