When and How to Do 2023 Electronic W-2 Filing

The Internal Revenue Service encourages employers to participate in electronic W-2 filing for 2023 tax year. E-filing your business’s Form W-2 data provides employers and employees with a new way to share and access compensation information. The new 2024 guidelines for information returns mean that a business must e-file its W-2 forms if it meets the new minimum threshold. Check if your business must send at least 10 documents of Form W-2 or other specific tax documents. Add together all of the required information returns to confirm whether your business qualifies. Preparing ahead of the January 31 deadline will aid you in electronically filing any or all forms with the greatest accuracy and efficiency.

Advanced Micro Solutions helps to streamline the electronic filing process for small businesses. Adapt to the new changes with a full accounting suite of tools, such as a base W-2/1099 Forms Filer Software and our E-File add-on module. Businesses may generate their own forms, review any state regulations for e-filing, and send W-2 information in a secure manner.


Important Rules for Electronic W-2 Filing for 2023

Make sure to take into account all of the employer requirements before you send any electronic W-2 forms in the coming months. You may decide that e-filing is only part of your process. Take a moment to consider whether you want to send your employees online W-2 forms as well. You must follow a few steps before you send online forms. Stay compliant with all W-2 requirements and federal laws by:

Requesting your employee’s consent – Ask your employees whether or not they prefer to get their Form W-2 online versus a paper document. Obtain their consent and pay attention in case they withdraw it ahead of another year. You must request new consent if you change the future delivery method.

Knowing the exact W-2 deadlines – You may wonder if an electronic W-2 filing deadline differs from a paper filing deadline. The short answer is, no. Issue all of your business’s W-2 forms for tax year 2023 by Jan. 31. The IRS will contact your business if you do not comply with deadline dates and your employees request the agency’s assistance.

Providing employees with appropriate and sufficient notice – Inform your employees about specific disclosures during the upcoming tax season. Let them know the acceptable procedures for receiving a paper W-2 form. Employees must receive an explanation as to whether you will treat their potential request for a paper statement as a withdrawal of consent for receiving their electronic W-2 form. You must also tell them in person, electronically, or by mail that notification of their withdrawn consent will not affect their previously issued W-2 forms.


What are the Benefits of E-Filing Form W-2?

Employers and employees each benefit from electronic W-2 filing for the year. Make sure that you know all the ways that e-filing saves time and money for both parties.

Earlier Access – The Form W-2 deadline is Jan. 31, but the IRS and employees do not receive it immediately with paper forms. Employees will not receive their form until February if you send it through the mail. E-file your forms so that the agency can begin to process it earlier and with fewer delays.

Convenience – Employees who receive W-2 forms electronically will have easier access to the salary information if they apply for loans or student aid. Do not discount your own electronic W-2 filing conveniences. As an employer, you will not need to field as many inquiries about the salary details.

Fraud Protection – Reduce the mail risk of employee details or Social Security Numbers falling into the wrong hands. A secure electronic distribution system creates encryption and firewalls around all of your business and employees’ sensitive information.

Greater Efficiency – The IRS receives countless W-2 forms in a year. Expedite their process when you e-file directly to them. Your business also benefits from e-filing to reduce the risk of misplacing documents or sending them to the wrong recipient.


Why Small Businesses E-File with AMS

Download our free 1099-etc Demo software today and explore how simple it is to manage your business’s electronic W-2 filing process. We offer two electronic filing options for our users. The E-File Direct (add-on) and E-File Services meet different needs for businesses. E-File Direct has a flat fee and offers an unlimited number of form filings. Use E-File Services if your business will benefit from paying per form or using a third-party vendor. AMS supports businesses operating in all 50 states, plus the District of Columbia and Puerto Rico.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.