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Electronic Tax Filing as an Employee Benefit |
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In addition to pushing employers to file their tax forms electronically, the IRS is also trying to make it easier for employees to file their tax forms electronically by asking employers to provide electronic tax filing as an employee benefit. The IRS states the following benefits the employee and employer will receive for providing this service:
• Electronic filing is considered a "de minimis" fringe benefit, which means it does not have to be included on an employee’s form W-2.
• Employers are not responsible for mistakes on an employee’s tax return. The individual is ultimately responsible for the information on his/her return, no matter who prepares or transmits it.
• By participating in this program, you can increase employee morale and enhance your company’s image as a technological leader. And since electronic filing significantly reduces paperwork, you would be promoting an environment-conscious workplace.
• Employees would save anywhere from $25 to $40 for electronic filing at a tax preparation agency.
• Employees would usually get their refunds two or three weeks from the date the IRS acknowledges receipt of returns, as opposed to four to eight weeks for paper returns.
• Employees can use the direct deposit option to have their refunds transferred right into their savings or checking accounts.
• Employees can have their tax return transmitted anytime during the tax season, and not send any payment due until the April deadline.
• Employees will be sure their returns are filed because the IRS will electronically send an acknowledgment of receipt to the transmitter.
To find out more about the Electronic Tax filing program, call your local IRS office and ask for the Electronic Filing Coordinator. |
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