W-2 FAQs: Common Questions for Employers and Employees

CoAd delivers W-2s to the employer between January 6 and January 24, or posts them electronically in the Employee Self Service portal. The employer must then provide W-2s to employees by January 31.

This page collects the most common questions from both employers and employees about annual W-2 forms at year-end.

W-2 delivery and deadlines

Who distributes W-2s to employees

CoAd does not mail W-2s directly to your employees. W-2s are sent to the employer, and the employer distributes them to each employee as needed. Employers must provide employees with W-2s by January 31.

For employees: the law states that it is the employer's responsibility to provide W-2s to their employees, not the payroll provider. CoAd's agreement is with your employer, so CoAd can only act as directed by your employer, and cannot send a W-2 directly to an employee. It is your employer's responsibility to verify that all documents generated by CoAd represent the wages you received; CoAd has no way of verifying this information.

Employees who have moved, and undeliverable W-2s

You are required to make a "reasonable effort" to distribute copies of W-2s to all employees. A reasonable effort has been made if you mail the employee's form to the last known address. If a form is unable to be delivered, you are required to keep it for four years. Keep the returned envelope with notations.

Recordkeeping

Employers must retain copies of all tax returns for at least 4 years for employment tax records — longer in special situations, for example unfiled returns or fraud. Retain employment tax records at least 4 years after the tax becomes due or is paid. This applies to tax returns, W-2s and 1099s.

Reissuing a lost or destroyed W-2

If an employee's W-2 is lost or destroyed, you can provide them a copy of your employer reference copy with "Reissued statement" written on the top.

Important: do not send Copy A of any reissued form to the Social Security Administration (SSA). The SSA uses the original employer's copy and there is a penalty for double filing. Do not send replacements to state or local agencies.

Why withholding or net pay changed

An employee did their personal taxes and owes money — why was tax under-withheld?

CoAd uses the annualized method of calculating taxes based on the employee's Form W-4. The employee should consult their accountant and complete a new Form W-4 if any changes are needed for the new year. Be sure to report any changes to support.

Allowances and salary have not changed, so why is the net check different?

There are several possible reasons:

• If the employee is highly compensated, they may have met the Social Security wage base, which is reviewed by the IRS and may change annually.
• If the employee has wages over $200,000, there is an additional 0.9% Medicare withholding on wages over that threshold.
• If this is the first payroll of the new year, the amount of federal tax withheld may change due to changes to the wage tax brackets. The IRS reviews bracket groupings annually and may adjust brackets and taxes withheld from year to year.

Corrections: fringe benefits, third-party sick pay and late payrolls

If you forgot to notify CoAd about employees with other income (including third-party sick pay) and fringe benefits for the year: those benefits affect not only your W-2s but also all quarterly and annual returns. If you or your accountant/bookkeeper are preparing or correcting your own returns, make sure all of them are corrected. Please forward copies of the modified returns for CoAd's records.

If the last payroll of the year is not included in your W-2s: the IRS determines tax year by check date, not the period end date. You can therefore have wages earned in one year that were paid in January and will be included on the next year's W-2.

W-2s for businesses that closed or were sold

CoAd produces W-2s for all clients who:

• Were active through the last payroll of December
• Are seasonal
• Went out of business or sold their business during the fourth quarter
• Went out of business or sold their business in a prior quarter and have paid any outstanding amounts due and the fees for year-end processing

For employees: what to do if you have not received your W-2

1. Contact your (former) employer to obtain your W-2.
2. Try to locate your last paycheck stub, because it could be helpful.
3. If it is after mid-February and you have not received your W-2 from your employer, contact the IRS for instructions on how to obtain W-2 information. You may contact the IRS by calling 1-800-849-1040.

The IRS will need the following information:

• Your name, address, phone number and Social Security number
• Dates of your employment within the tax year
• Your year-to-date estimate of wages earned
• Your year-to-date estimate of federal income tax withheld
• Your employer's name, address and phone number

Frequently asked questions

When do employers have to give employees their W-2s?

Employers must provide employees with their W-2s by January 31.

Does CoAd mail W-2s directly to employees?

No. W-2s are sent directly to the employer, who then distributes them to each employee as needed. The law makes providing W-2s the employer's responsibility, not the payroll provider's.

What should I do if an employee has moved and I have no forwarding address?

You are required to make a reasonable effort to distribute copies of W-2s to all employees, and mailing the form to the employee's last known address satisfies that standard. If a form cannot be delivered, keep it for four years, retaining the returned envelope with notations.

What should I do if an employee loses or destroys their W-2?

Provide the employee a copy of your employer reference copy with 'Reissued statement' written on the top. Do not send Copy A of any reissued form to the Social Security Administration, because the SSA uses the original employer's copy and there is a penalty for double filing, and do not send replacements to state or local agencies.

Why is the last payroll of the year not included on my W-2s?

The IRS determines the tax year by check date, not by the period end date. Wages earned in one year but paid in January are included on the next year's W-2.