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Getting Employees to Click YES for Electronic Delivery of Tax Statements

We live in a digital world. From telling us where we need to be, to paying people and ordering our food, we rely on digital tools to live our lives.

It seems like some HR processes still need to catch up, however, as a majority of employees still receive physical copies of their year-end tax and ACA statements in the mail every year. Less than 20% of the 18.3 million year-end tax statements CIC Plus managed in the 2020 tax year were electronic.

So, how do you get employees to opt into electronic delivery for their tax documents? And what’s holding them back?

The benefits of electronic delivery and what’s holding employees back

There are clear benefits to electronic tax document delivery. Employees will receive their statements sooner, which enables them to complete their tax returns and get their refunds faster. Employers save on the expense of printing and mailing statements. On top of all that, it saves trees which helps the environment.

Going paperless allows employees to keep an electronic record of their paperwork, meaning no more digging through filing cabinets to find the previous year’s tax information. Electronic document delivery systems have paved the way for companies to go paperless, which is only being expedited by the rise in remote work.

So, what’s holding employees back? To receive electronic tax statements like W-2s and ACA statements, employees have to manually opt in. Some employees may be overly cautious about this, so they may need encouragement that it is safe and secure. In some cases, employees may simply be unaware that it’s even an option. They may choose to sign up as soon as they are made aware.

Signing up employees for electronic W-2 delivery

It can be difficult to communicate with employees and convince them to change the way they do things. But with the right communication strategy, you can get employees on board with electronic delivery in no time, it just might take a little convincing.

3 ways to encourage your employees to register

  1. Try promoting electronic tax document delivery during open enrollment for benefits. They’ll be more likely to opt in while they’re already filling out benefit information anyway.
  2. Auto-enroll all new hires as part of onboarding activities so they don’t need to worry about it later.
  3. Conduct an internal promotional campaign to create awareness while encouraging employees to enroll. Consider offering an incentive for people to enroll and promote it as an easy way for your company to become more environmentally friendly.

Make it easy to sign up

Create as few barriers as possible for those who choose to sign up. Try implementing the option to sign up for electronic delivery directly inside the employee self-service platform that your employees may already be familiar with. If they know it’s only a few clicks away, then they’ll be more likely to sign up.

Tax compliance doesn’t need to be a difficult process. Reach out to our team at CIC Plus and we’ll help you make compliance a breeze.