MHC Software, Inc.

Electronic delivery of W2s helps organizations eliminate or reduce the costly, labor-intensive process of distributing W2s forms. Firms may accommodate employee requests for W2 copies simply by directing employees to a website.

Current IRS requirements of employee consent and notification to distribute the initial W2s electronically make electronic delivery administratively burdensome. Document Self-Service for Electronic W2s 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 W2 printing altogether.

Document Self-Service Electronic W2s
Electronic W2s are posted to an employee self-service website in .PDF format. The Document Express W2 Module scans the W2 data file, generating an electronic W2 for employees who opt into electronic delivery and printing the remainder. Electronic W2s are posted to a temporary directory, where an administrator can verify data accuracy. Once the electronic W2s are posted to the Employee Self-Service site, employees are automatically notified by e-mail of their availability.

To access their W2s, 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 W2s. The Employee may view and print from the employee self service web site.

Administrative tools allow authorized users to generate and post electronic W2-C documents, manage messaging and employee communication, view audit reports, manage employee information, and send reminder e-mails.

Electronic W2 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 W2s, consent to electronic W2s, revoke consent, administer secondary e-mail, and print/download current and past W2s. The software provides a full system audit trail of all administrative and user actions.

Administrative functions include view, print, e-mail, post and delete. W2-Cs also may be posted to the Web page, along with original W2s. Terminated or inactive employees' W2s 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 W2s.
• Eliminates reprints and calls for duplicate W2s. Employees are directed to a website.
• Reduces costs. On average it costs a client $1.50 to $2.00 per W2 to print and mail the document, excluding any additional time spent on reprints.
• Gives employees quicker access to W2 statements.
• Provides an online W2 history.

Overview of current IRS requirements
The following summarizes IRS requirements. MHC’s Electronic W2 software’s fulfillment of those requirements are indicated in blue.

IRS Requires: The employee must be informed that he/she will receive a paper W2 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 W2 authorization process informs employees that a paper copy of their W2 will be delivered if consent is not given.

IRS Requires: The employer must notify the employee that the W2s 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 W2 process in a manner that demonstrates the ability to access the W2 in electronic format (i.e., W2s posted to the Web; consent provided via the Web).

Document Self-Service requires the employee to download and print a test W2 prior to allowing the employee to consent to electronic delivery of the W2.

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 W2 job. This allows the employer to set their own cut-off date for authorizations and revocations of consent.

IRS Requires: Notifications that W2s 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 W2s 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 employee from storing all W2s 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 W2s. 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.”