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Understanding
W-2 Automation

  • Filing Form W-2 manually can be quite cumbersome. With TaxBandits API, you can streamline the e-filing and distribution of your W-2 forms.
  • W-2 automation minimizes manual tasks and also enhances the accuracy
    of your filings.
  • Our API automates the W-2 e-filing with both the SSA and states and distributes copies to employees via Postal Mailing and Secure Online Access.
W-2 Automation
W-2 Automation

The W-2 Automation Process with TaxBandits API

Generate

Generate

TaxBandits' API ensures the precise generation of W-2 forms by utilizing the employee data, withholding information, and other necessary details you provide.

E-File

E-File

Once generated, you can let TaxBandits e-file all your W-2 forms with the SSA and states, ensuring they are submitted on time.

Distribute

Distribute

You can opt to distribute copies of the W-2 form to the respective employees either via Postal mailing or Secure Online Access, ensuring compliance.

W-2 Automation Success Stories with TaxBandits API

Form Filling Software

A popular form-filling software was offering online fillable PDFs of W-2, 941, and various other tax forms for clients. Typically, the clients use the software to complete their W-2 form, download and send it
to the IRS.

With TaxBandits API integration, the form-filling software was able to offer their clients the option of e-filing their forms directly rather than downloading and printing them. This automation process not only enhanced the software but also simplified the W-2 filings for its clients.

Payroll / Accounting Software

One of the popular payroll software providers in the U.S. was looking for a solution that could facilitate the e-filing of tax forms with federal & all 50 states right from their software.

By integrating TaxBandits API, they've empowered their users to streamline the preparation and e-filing of essential payroll tax forms, including W-2, 940, 941, and more, for both federal and state requirements. TaxBandits ensures the timely distribution of W-2 copies to recipients through options such as Postal Mailing or Online Access.

Tax Strategy Software

A leading tax strategy/payroll software in the U.S. wanted to find a way to simplify the preparation and e-filing of W-2 forms for their clients within their software.

Integration of TaxBandits API enabled them to provide their clients with a seamless way of preparing and e-filing W-2 forms without having to import data from one software to another.

Frequently Asked Questions about W-2 Automation

1. What data do I need to provide to generate a W-2 form?

  • Business Details: Information about your client’s business, including its name, address, and Employer Identification Number (EIN) and W-2 specific such as Kind of Payer, and Kind of Employer.
  • Employee Details: Details about the employee, such as their name, address, and Social Security Number (SSN)
  • Form Data Details: W2-specific form field data
  • State Return Details: State wages and withholding, if any
  • State Recon Details: State reconciliation details, if any

2. Can the API handle multiple W-2 forms at once?

  • Yes, the TaxBandits Public API supports handling multiple W-2 forms in a single submission. However, there is a limit of 250 W-2 forms per submission using the CREATE endpoint.
  • After reaching this limit, you can use the unique SubmissionId provided in the CREATE response to add additional forms through the UPDATE endpoint for the same submission.
  • Each W-2 record can be identified using the unique RecordId (provided by TaxBandits). Once all W-2 forms have been added to the submission, you can transmit them together by calling the TRANSMIT endpoint with the SubmissionId.

3. How does the API handle corrections for W-2 forms?

You can use the FormW2C endpoint to file W-2 corrections.

  • If the original W-2 has been filed with TaxBandits, you can provide the RecordId of the original W-2 in the “PrevReportedRecordId” instead of providing previously filed data.
  • If the original W-2 has been filed outside W-2, you must provide both the previously filed W-2 details and the correct W-2 details.

4. How are W-2 forms distributed to employees?

You can opt for our POSTAL MAILING or ONLINE ACCESS services while creating the return.

If you choose to distribute it yourself, you can download the PDFs using the “RequestPdfURL” or “GetPDF” endpoint to download the PDF and distribute it yourself.


5. How do I handle state-specific W-2 requirements?

Each state has its rules and requirements for filing Form W-2. Click here to learn more about the state filing requirements for Form W-2.

If you are required to file Form W-2 with the state, pass the IsStateFiling node as “TRUE” in the SubmissionManifest and provide the state and local details for the employee. TaxBandits will file your W-2 form directly with the state.


6. How to send the state reconciliation information via API?

TaxBandits currently supports state reconciliation filing for 6 states. You can send the Reconciliation data along with the W-2 under the “StateReconData” object.

  • AL - Form A3
  • CT - Form CT-W3
  • ID - Form 967
  • MD - Form MW508
  • MO - Form MO-W3
  • WV - Form WV/IT-103

Click here to learn more.


7. My Form W-2 was rejected by the SSA, how to retransmit it to the SSA via API?

Not all the rejections from the SSA have to be re-transmitted. If the SSA has rejected a W-2 as a duplicate of an already filed W-2, you cannot retransmit the return.

If the SSA has rejected your return due to an incorrect value in the form, you can use the UPDATE endpoint to make any changes to the W-2 form and call the TRANSMIT endpoint to transmit the forms again to the SSA.

Note
Note: TaxBandits will not charge you additional credit if you retransmit a rejected W-2.

8. How will I receive the SSA or State Agency acknowledgment?

Once the SSA or State agency has accepted or rejected your W-2 form, you will receive a webhook status from TaxBandits. To do so, you must configure Webhook for ‘E-file Status Change’. For more information, click here.


9. Can I customize the Online Access portal with my logo and theme?

Yes. TaxBandits Public API allows you to customize the Email Sent and the Online Access portal with your business URL, logo, and theme to reflect your brand. To do so, follow the steps mentioned here.


10. How do I retrieve the summary Form W-3 via API?

You can retrieve your summary Form W-3 using the FormW3/GetPDF endpoint, where you need to give the tax year and EIN. In response, you will get the byte array of Form W-3 pdf.

Note
Note: The SSA doesn’t require Form W-3 when e-filing W-2 forms. It’s required only for paper filing.

Integrate with TaxBandits API to Enjoy All the Benefits
of W-2 Automation!