STPS

What To Do With a Form W-2 Returned to an Employer

Employers must send W-2 forms to their employees each year by January 31st. Hopefully, your employees will receive such paperwork. If you have old or incorrect addresses on file, some forms could be returned to you as undeliverable.

The problem of having W-2s returned to trucking companies is common. Several factors could be to blame, including an incorrect address, a change of address, or other problems with the postal service. To guarantee compliance with IRS requirements and avoid any legal repercussions, it is crucial for trucking companies to understand what to do when a W-2 is returned.

What is Form W-2?

Employers are required to supply employees with the Form W-2 and file it with the Social Security Administration (SSA). This document contains the employee’s yearly compensation as well as the amount of taxes deducted from their wages. The timely and accurate delivery of W-2s to employees is the responsibility of employers. Returning a W-2 to the employer may result in a compliance problem that needs to be resolved.

What to do if a W-2 is returned to you?

How to handle an undeliverable W-2 depends on how you initially sent the form, by mail or electronically. Your next step also depends on whether the worker is an existing employee or a former employee.

Paper Form W-2:

When it comes to W-2s, employees can opt to receive paper copies of the form through the mail. If a W-2 is returned undeliverable, employers should avoid opening the packet. To demonstrate that the form was transmitted on time, employers can use the sealed envelope with its postmark as evidence.

It is recommended that employers make a copy of the envelope and keep it for their records to show their attempt to transmit the form on time. To ensure accuracy, employers should compare the address on the envelope to the one in their records and correct any discrepancies. If there is a typo in the address on the original envelope, the employer should place it in a fresh envelope and mail it to the correct address without opening the original envelope.

What you do next depends on whether the person is still employed by you and if the address on the mail and the employee records do match.

Current Employee:

Speak with the person if they are still employed by you. Inquire about the employee’s most recent address. The employer should take advantage of this chance to update their personnel records and payroll records.

You may give the Form W-2 to an ongoing employee directly. Do not remove the Form W-2 from the original postmarked envelope if you need to resend it. You can demonstrate that you made an effort to send the form on time by keeping it in a sealed, postmarked envelope.

Mail the form after sealing it in a bigger envelope. Your attempts to deliver the form to the employee are documented by the postmarks on both envelopes.

Former Employee:

During the previous year, an employee may have left or been terminated from your company. If so, it might be difficult to track down this individual, especially if they moved.

There isn’t much you can do if the address on the envelope and the address in your file do match. If you have the former worker’s phone number or email address, you could try contacting them this way.

Keep the addressed, sealed envelope as evidence that you tried to mail Form W-2. A copy of the Form W-2 from the former employer should be kept on file for four years. The copy may be printed on paper or digitally.

The ex-employee should now get in touch with you to request the W-2. If the individual calls to request the form, be careful. Requests made over the phone are more likely to be frauds than those made in writing. If at all possible, ask the former worker to provide you with a written, signed request.

Put the original envelope in a fresh envelope and send it to the former worker at the corrected address provided. 

If the employer is unable to provide the returned Form W-2 to the employee, they are required to report it to the SSA. The SSA can offer assistance to the employer in correcting any errors in the employee’s name or Social Security number and provide guidance on how to comply with IRS regulations.

Electronic Form:

Employees can receive Form W-2s electronically. Only post W-2s on a secure website. Your company may maintain a secure employee portal, or your payroll provider may offer an option. After that, you must inform your staff that the forms are available. The notice may be delivered orally, by mail, or by email.

If an employee’s email address is entered incorrectly, the email notification may be returned as undeliverable. To start with, make an effort to get a valid email address. If you are unable to do that, you have 30 days from the time the electronic notification is returned as undeliverable to deliver the notice in person or by letter.

Bottom Line:

In conclusion, trucking companies must act right away to ensure compliance with IRS rules when a Form W-2 is returned to the employer. Verifying the employee’s address is the initial step, followed by resending the Form W-2 to the proper address. The employer is required to make a reasonable effort to find the employee and give them the Form W-2 if they cannot be found. If all else fails, the employer must get in touch with the Social Security Administration to report the returned Form W-2 and adhere to any other regulations. In order to maintain compliance and avoid any legal repercussions, accurate record-keeping is essential. Trucking companies can guarantee their employees will receive their Form W-2 in a timely and accurate way by following these procedures.

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Written by Mike Ritzema

Before founding Superior Trucking Payroll Service, Mike was the CFO of a trucking company with 80 trucks and a thriving brokerage. This experience gave him the perspective that a payroll solution has to make the lives of the office people better.  All the solutions he has designed are to benefit everyone.  Our company mission is to help trucking families and that includes the company owners, the drivers, and the office.

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