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Do I Need to Reach Out to Previous Employees to Verify Addresses for W-2s?

This image shows a W-2 Wage and Tax Statement form with a stack of hundred-dollar bills placed above it. The form is surrounded by office items like paperclips, a pen, and a spiral-bound notebook, highlighting themes of finance, payroll, and taxation.

We often get the question; “Do I need to reach out to my previous employees to make sure their address is right for their W-2?”

The answer?

Businesses must make sure that W-2 forms are accurately delivered to former employees as the year comes to an end and they become an essential component in payroll processing. This article clarifies an ongoing issue by examining whether businesses should contact previous employees for address updates.

Do Employers Need to Reach Out to Previous Employees for Address Updates?

Employers are often not required to aggressively seek out address updates from former workers. Employees are usually the ones who have to keep track of their contact details, particularly if they are expecting tax-related documents. Nonetheless, companies can be proactive in improving W-2 distribution accuracy.

Factors to Consider:

Employer Policy: 

When it comes to updating addresses, businesses may have different policies. Certain companies have clear policies requiring former employees to notify them of any changes to their address in order to ensure that tax documents are sent without any issues.

Record-keeping: 

An essential component of payroll and HR management is keeping accurate employee records. Before leaving the company, departing employees should update their contact information, as advised by employers.

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Exit Processes: 

If departing employees anticipate receiving W-2s or other essential paperwork, companies can consider including a reminder or checklist item for them to change their contact information during the process.

When Should Employers Reach Out?

Contacting former coworkers is not required, but it can be a thoughtful and proactive move. Employers can deliberately schedule these communications:

End of Year:

One of the steps in year-end processes can be contacting former employees to confirm their address as the year comes to a finish and the W-2 preparation process begins. This guarantees that any changes to the address are recorded prior to the official distribution.

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Beginning of Tax Season:

The start of tax season is another opportune period. In order to ensure that W-2s are delivered on time, employers might politely ask previous employees to verify their contact details.

Upon Notification of Return Mail:

The former employee may be notified if any W-2s are returned because the address on file is no longer current. Employers should use this chance to update documents in case of future contact.

Bottom Line:

Employers are not required by law to actively seek out address updates from former employees, but doing so can improve accuracy and guarantee that W-2 distribution goes smoothly. Employers can consider incorporating reminders during the exit process, reaching out strategically towards the end of the year or the beginning of tax season, and addressing returned mail promptly. These procedures help to ensure that W-2 distribution is done in a way that is both efficient and thoughtful for both current and former employees.

Written by Tessa Braybrook

Tessa joined Superior Trucking Payroll Service in September 2022. She loves to write and make videos which made her a great asset to the team in her marketing position. 

Before working at Superior Trucking Payroll Service she worked in IT at GVSU which gave her the skills to problem-solve with customers over the phone. 

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