MHC Software, Inc.

Electronic delivery of W-2s helps organizations eliminate or reduce the costly, labor-intensive process of distributing W-2s forms. Firms may accommodate employee requests for W-2 copies simply by directing employees to a website.

Current IRS requirements of employee consent and notification to distribute the initial W-2s electronically make electronic delivery administratively burdensome. Document Self-Service for Electronic W-2s fulfills IRS compliance by providing the necessary notices to employees, tracking employee consent and/or revocation of consent, and furnishing a full audit trail of all activity. This compliance model allows your company to meet IRS requirements and reduce or eliminate W-2 printing altogether.

Document Self-Service Electronic W-2s
Electronic W-2s are posted to an employee self-service website in .PDF format. The Document Express W-2 Module scans the W-2 data file, generating an electronic W-2 for employees who opt into electronic delivery and printing the remainder. Electronic W-2s are posted to a temporary directory, where an administrator can verify data accuracy. Once the electronic W-2s are posted to the Employee Self-Service site, employees are automatically notified by e-mail of their availability.

To access their W-2s, employees log onto Employee Self-Service, which mirrors the Employee Self-Service look and feel for a transparent flow. Once authenticated, employees can link to their electronic W-2s. The Employee may view and print from the employee self service web site.

Administrative tools allow authorized users to generate and post electronic W-2C documents, manage messaging and employee communication, view audit reports, manage employee information, and send reminder e-mails.

Electronic W-2 Product Features
Employees are authenticated in the same manner as Employee Self-Service. Document Self-Service is accessed from the Employee Self-Service Web page through a link, providing a seamless look and feel.

Employees may download test W-2s, consent to electronic W-2s, revoke consent, administer secondary e-mail, and print/download current and past W-2s. The software provides a full system audit trail of all administrative and user actions.

Administrative functions include view, print, e-mail, post and delete. W-2Cs also may be posted to the Web page, along with original W-2s. Terminated or inactive employees' W-2s may be printed or posted to an alternate, client-determined website.

Solution Benefits
• Saves time and increases efficiency, reducing or eliminating the manual, labor-intensive process of distributing W-2s.
• Eliminates reprints and calls for duplicate W-2s. Employees are directed to a website.
• Reduces costs. On average it costs a client $1.50 to $2.00 per W-2 to print and mail the document, excluding any additional time spent on reprints.
• Gives employees quicker access to W-2 statements.
• Provides an online W-2 history.

Overview of current IRS requirements
The following summarizes IRS requirements. MHC’s Electronic W-2 software’s fulfillment of those requirements are indicated in blue.

IRS Requires: The employee must be informed that he/she will receive a paper W-2 form if he/she does not provide consent for electronic delivery. Employer must provide a “clear and conspicuous statement” to the employee containing disclosures about the electronic process and duration of their consent.

The electronic W-2 authorization process informs employees that a paper copy of their W-2 will be delivered if consent is not given.

IRS Requires: The employer must notify the employee that the W-2s will be available electronically by a given date, but no later than January 31.

Document Self–Service provides the standard disclosures through the website and e-mail notifications. Clients may review and edit these disclosures.

IRS Requires: The employee must provide consent to the electronic W-2 process in a manner that demonstrates the ability to access the W-2 in electronic format (i.e., W-2s posted to the Web; consent provided via the Web).

Document Self-Service requires the employee to download and print a test W-2 prior to allowing the employee to consent to electronic delivery of the W-2.

IRS Requires: The employee may withdraw consent in writing at any time with 30 days notice. The employer will confirm the withdrawal in writing. E-mail is an acceptable form of communication for confirmation of acceptance and revocation.

Document Self-Service allows the employee to revoke consent of electronic delivery. Upon revocation an e-mail is automatically sent to the employee’s primary and secondary e-mail addresses.

IRS Allows: Employers may provide that withdrawal of consent takes effect on either the date it is received or on a subsequent date hereby imposing their own cut-off date.

The Document Self-Service Administration Module allows authorized users to lock the employees’ status prior to running the PR297 W-2 job. This allows the employer to set their own cut-off date for authorizations and revocations of consent.

IRS Requires: Notifications that W-2s are available on the website may be delivered by mail, e-mail, or in person. If by e-mail the subject line must be: “IMPORTANT TAX RETURN DOCUMENT AVAILABLE.”

Through the Document Self-Service Administration Module, authorized users may post the W-2s to a temporary directory prior to posting the documents to the website, allowing for data verification and error checking. Once the documents are posted to the website an e-mail is automatically generated to each consenting employee’s primary and secondary e-mail address with the following subject line: “IMPORTANT TAX RETURN DOCUMENT AVAILABLE”. The subject line may be edited to include the sending company’s name per IRS comments on the final regulations.

IRS Allows: IRS Final regulations do not prohibit an employer from storing all W-2s on the web server if a paper copy is provided to non-consenting employees.

Document Self-Service provides the ability to post current and past year’s W-2s. This eliminates the need to reprint and distribute copies upon request.

Service and support by MHC Software
Our commitment to superior quality and customer service comes with a 100% customer satisfaction guarantee. The turn-key system allows us to design, implement, test and enter into production within 30 days. Once implemented, our comprehensive maintenance plan ensures you of excellent support and value. The annual software maintenance plan includes changes to the software required by an ERP upgrade, software upgrades and improvements, software support, and ongoing compatibility with ERP applications. Our commitment to keeping you in sync with the ERP system is just one of the ways we exercise the motto, “Get a customer and keep ‘em forever.”