IRS approves use of electronic statements
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: My employer said that we will no longer be receiving statements on paper for our employee benefits because this information is available online. Is this allowed?
A: Yes, IRS has now approved the expanded the use of electronic document transmission within employee benefit plans that require written disclosures or statements to employees. Many health plans and Section 125 cafeteria plans already rely solely on electronic communication of benefits and claims. Under the new proposed regulations, virtually almost types of employee benefit communication can now be made electronically. The new regulations would let an employee benefit plan sponsor use electronic media either under the E-SIGN consumer consent rules or under an alternative electronic rules that are similar to those that were in effect before E-SIGN. The regulations still uphold that the important point is that the employee must understand the communication with regard to their rights and obligations.
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