Year-end resolution: Reduce or Eliminate W-2 Re-issues and W-2c’s with Easy Balance

By Posted September 9th, 2013

Here in the US, payroll professionals know the routine. Each year during year-end processing, we face the same questions from employees. I’m sure my payroll colleagues will recognize some of these calls that they typically receive from employees between February and May of every year:

“I have a state W-2 but I no longer live in that state.”

“My total gross on my paystub does not tie to what is showing on my W-2. Why? I need a reconciliation.”

“I did not receive my W-2. I must have forgotten to give you my new address.”

“My Social Security number on my W-2 is incorrect.”

In order to resolve most of these calls, you either have to re-issue the W-2 or create a corrected wage and tax statement (otherwise known as a W-2c).

I found myself thinking of all of these common year-end pains recently as I prepared an upcoming webinar about our Easy Balance solution for US payroll reconciliation. Those of you who have seen Easy Balance know it is designed to help you prevent most of these calls or to get to the bottom of the reason for the call so it won’t happen again.  Easy Balance contains pre-delivered reports, documents and letters that you can use throughout the year to validate an employee’s Social Security number, address and tax information.  These documents can be either e-mailed or mailed to the employees.

The W-2 Letter – Mailing Address & SSN document is designed to help an employee validate his/her address and Social Security Number.  This letter can be sent to employees before the end of the year to validate the information.  This will eliminate, or at the very least greatly reduce, W-2 reissues and W-2c’s.  A sample of the letter is shown below (click on this or any other image to view it in larger format).

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The Tax Validation Letter delivered with Easy Balance allows the employee to validate the tax information that’s in your payroll system (resident, work, unemployment tax authorities and W-4 information).  Again, this letter can be sent to employees before the end of year or throughout the year to eliminate bad tax data in your payroll system, thus eliminating bad data in your W-2’s and future W-2c’s.  A sample of the letter is shown below.

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Easy Balance’s pre-delivered W-2 Explanation Document provides employees with a reconciliation of every box on the W-2. This document shows the wage types that make up the amounts appearing on the W-2. It can be sent to all employees along with the W-2 or can be provided to an employee when he/she calls.  Since the letter is in PDF format, you can e-mail it to an employee while the employee is on the phone, thus eliminating the need for a second phone call with additional questions. Below is a small sample of the W-2 Explanation document.
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Like our reports and documents in our other solutions Easy Reporter and Easy Documents, all of these documents can be customized.  You can put your company logo and change any text that appears on the document.

I hope you’ll join me on September 19th for our webinar on Easy Balance to learn more. If you want a less stressful and quieter W-2 season, then Easy Balance is definitely a prerequisite!