Why do companies take so long for W-2s? (1 Viewer)

[Craig S]

Why not adjust the withholding, and then take the extra amount you see on your check and redirect it into an automated savings program (401K, bonds, etc.)? Your take-home stays the same, there's no extra cash to piddle away, and your money is earning interest for YOU, rather than the government.

 

[MikeH]

I produce the tax forms for tuition credits (T2202A in Canada, 1098T in the U.S.). For the last two years we sent out forms around this time, maybe a week later and had nothing but headaches. We did so many reprints because students lost the forms, or "I never received it" that forms are back on a Feb. mail out. Students just don't think about taxes this early and usually don't care until their parents start asking for the forms to use on their returns.

That's my excuse and like the other posts my T4 (Canadian version of W2) doesn't arrive until Feb.

Mike

 

[Colin Davidson]

Not to excuse them for being late but the past couple of companies I have worked for used a centralized payroll services company. Thus your employer gets the payroll/tax info from the payroll company to verify they have the correct info. Your company confirms all the data is right and sends a confirmation to the payroll company, they input, print and mail the W2/1099's to you.

Having to do that for hundreds of large and small companies takes time as well as the payroll company still having to churn out weekly checks.

Just a thought - and not intended as a thread poop.

 

[Vince Maskeeper]

My mom is a payroll coordinator for a county hospital, and while they do their payroll and accounting on site (not outsourced)- they still have everything relatively computerized and automated.

That being said, "end of year" time for my mom is, and always has been, a very busy time. i wish she were available to make the lists of all the things they have to do, but rest assured if she's getting 5 hours of sleep a night during the first week of January, it's a miracle.

There are tons of complexities, not only with year end financial figures for their own accounting and taxes- but getting into variables like Student Loan reimbursement or tuition reimbursement, pay mistakes, and the fact that they have to verify all kinds of stuff in year end auditing (vacation and sick time for example).

It's a busy time for her- so I know that the whole W-2 thing in her world is a valid "delay"-- with all the things they do year-end, it's amazing that it all gets done.

-V

 

[Brian Perry]

In my business (commodity trading), we use much of January to make any adjustments or corrections to 1099s before sending them out to our traders.

Just think if the government decided that April 15 was too long of a lag to file your previous year's return in this "modern age."

 

[LarryDavenport]

We here at the UW get ours (usually) the second payday in January. Since I fill out the 1040EZ and file by phone, if I just had my payroll number (or whatever numbers I need) I could file right now. But I usually get my refund by the end of February anyway. It's going to be about $475, which I am going to use towards moving into a new apartment (though I'd rather buy new speakers or a Pronto).

 

[Lee L]

I got my W-2 in my check stub last Thrusday 1-8-04 HA! HA! Of course I still have to wait for my Wife's and all teh 1099's to roll in.

As far as using your last stub to do your taxes on, be carefull, often, your pay period will overlap the years and your employer very possibly computes YTD earnings based on paychecks issued in a year, while the W-2 is for earnings in the year IIRC. Plus with 401k and other deductions, Medicare/ Social Security wages might differ from taxable wages, not to mention if you earn income that is not strictly defined as "wages" like vehicle allowances and bonuses.

 

[Jon Bell]

Give your payroll department a break. They are probably understaffed and overworked. They rarely get any recognition except for complaints when something isn't perfect. Payroll is a difficult, complicated, time consuming process. If the payroll is outsourced, they have to help try and fix the mistakes made by the payroll provider.

31 days is not a long time to wait, and it gives you plenty of time to file your taxes on time. When things are rushed, mistakes happen, and I for one would rather have my information be correct as opposed to getting it a few days or a week earlier and having it be incorrect.

Running W-2's happens once a year. Even in an automated process, there are software updates that have to be done and information to check. It's not as easy as just pushing a button to print the information.

Do you want to do something really kind? Take your payroll department to lunch some day, or buy them bagels, or just call them, not to complain, but to thank them for their hard work.

 

[John_Berger]

The ironic part about the last few messages is that it's almost always the 1099s that I end up waiting for, not the W-2s.

 

[Dennis Nicholls]

We here at work get our W-2s electronically on the 26th, but I'm sure I'll have to wait longer for the 1099s.

 

[Carl Miller]

Just want to add a little more irony.

I work for the Dept. of Treasury, and even we don't get our W-2's until the end of January.



Oh, and while true with electronically transmitted returns, you definitely don't want to send in a paper return without the W-2's attached. Not unless you want to get your whole return sent back to you and have your refund delayed as long as 6 weeks.