Year-end Electronic Tax Form Consent (Client User)

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Categories: Reporting isolved Time, Payroll, Employee Maintenances, Human Resources, Employee Self-Service Author: Joan McAlister Editor: Derek Oberg Updated: November 27th, 2023 Tags: Year-End, Opt Out, Electronic Consent Intended Audiences: Human Resource Specialist Payroll Specialist

Introduction

Employers can offer their employees the choice of either paper or electronic Year-End forms. The advantages of electronic Year-End forms are:

·        Fewer W-2s to distribute

·        The Electronic consent is for all  Year-End forms, including W-2s, 1099s and ACA forms

·        No paper form(s) will be sent for the employees who accept the Terms of Use and Consent of Electronic Delivery of Year-End Tax Forms.

·        Automated email to alert the employee when the electronic tax form is available

·        Automated consent withdrawn date will populate for any employees terminated in iSolved prior to or with the last payroll of the year and will receive a printed W2 for that tax year

·        Terminated employees who Accept the Terms of Use and Consent of Electronic Delivery of Year End Forms in Employee Self-Service after their termination will not receive a printed W2

Due to IRS guidelines, the employee will need to sign an electronic consent.

Employee Self-Service

Upon initial Employee Self-Service login (after your Service Bureau turns on the Year-End Tax Forms Electronic Signature Consent), all employees will be presented with the following "Terms of Use and Consent of Electronic Delivery of Year-End Tax Forms."

 

The window will open as a pop-up, allowing your employees the following options:

·        I Accept: If accepted, a PDF copy of this acceptance titled "Electronic Delivery – Tax Forms – Accepted" will be available under Employee Documents.

If accepted, no Year-End forms will be printed, but will be available under the W2/ACA/1099 Forms section of Employee Self-Service. The employee will receive an email when they are available for viewing/printing.

 

·        I Decline: If selected, the employee will receive the following pop-up:

 

o   If the employee clicks Cancel, they will be taken to the "Electronic Delivery of Communication and Use of Electronic Signatures" to accept.

o   If the employee clicks on OK, a PDF copy of the decline titled "Electronic Delivery – Tax Forms – Declined" will be available under Employee Documents.

o   If declined, a paper copy of all Year-End forms will be sent to the employer and will also be available under W2/ACA /1099 Forms in Employee Self-Service. However, the employee will not receive an email when it is available.

If an employee changes their mind after their initial decline, or if they had withdrawn their acceptance, they are able to change their decision by clicking on the arrow next to their name in Employee Self-Service.

 

Once they click on Electronic Delivery – Tax Forms, the pop-up with the "Terms of Use and Consent to Electronic Delivery of Year-End Forms" will appear again. The employee can then click on I Accept.

If they click on Electronic Delivery – Tax Forms once they have accepted the Electronic Delivery of Tax Forms, a pop up will appear indicating they have already accepted.

 

General Screen

Once "Electronic Consent" and "Electronic Consent for Tax Forms" are activated by your Service Bureau, a menu item titled Electronic Consent will appear on the employee's General Screen. Navigate to Employee Management > Employee Maintenance > General.

 

If the employee changes their mind after consenting and wants to withdraw this election, they must notify their employer in writing, per the agreement they signed.

 

The employer will enter the date under YE Consent Withdrawn on the General screen for the employee. This will stop any future electronic W2, ACA and 1099 Year-End forms.

Email Notification

Any employees that have accepted electronic Year-End forms consent will receive an email when the forms are available. Please check with your Service Bureau for the availability date.

The employer may use the system defaulted email for notification. Here is an example:

 

The employer may also create an Email Template in their own wording to be sent to employees who have accepted electronic delivery when the Year-End forms are available. Use the following instructions to customize the email:

1.          Navigate to Client Management > Workflow > Email Templates and enter the following.

2.         Email Subject Line: Must read "IMPORTANT TAX DOCUMENT AVAILABLE" (in all caps).

3.         Email Text: The employer can customize, but should contain information on how to access and print Year-End tax documents. Refer to the email Text Placeholders.

4.         Email Type: Select "YE Tax Form Notification."

 

Employee Year-End forms will appear in Employee Self-Service under W2/ACA/1099 Forms. The employee will be able to view or print the Year-End form by clicking on "View Document." They are also able to see instructions by clicking on "View Instructions."

 

Year-end Report Archive

An employer can navigate to Reporting > Year-End Report Archive to see copies of their employees' Year-End forms. Employees that are not receiving a printed W-2 will not appear in the "W-2 Pressure Sealed" report in the Year-End Report Archive. The employer will only see W-2s for the employees receiving printed W-2s.

The employer "W-2 Copy D" will include all W-2s. However, for those employees that have consented to electronic delivery, the W-2 copy will have a watermark identifying it as an ESS (Employee Self-Service) copy.

 

The ACA form for those employees that have consented to electronic delivery will also have a watermark that will appear in the upper left corner.