What to do about a returned W-2


Clients often contact IPS with their concerns about new tax laws or processes. Here is one issue that has lately been front of mind for several business owners and HR managers:

I mailed W-2’s to my employees, and one was returned to our business for an employee who was terminated.  What do I do with the W-2?

If you sent W-2’s to your employees by January 31, 2020, you will meet the expected requirements if the form was properly addressed and mailed on or before that date.

If a W-2 came back to you, and the employee was dismissed before December 31, 2019, hold on to the W-2 for four years. However, if the undelivered Form W-2 can be produced electronically through April 15 of the fourth year of being issued, you do not need to save the employee copy that was returned by mail.