For some people, filing taxes seems as enjoyable as getting a cavity filled. Yet the arduous task is something workers have to complete every year (hopefully fillings don’t happen as often as filings). A recent study conducted by The Harris Poll reports 57% of U.S. adults who file federal taxes find completing the process nerve-wracking.
While HR professionals can’t offer employees tax advice, there’s plenty they can do to alleviate tax-related stress. Read on to learn ways to support employees during tax season.
Understanding Employee Needs During Tax Season
Before providing tax assistance for employees, it’s important to understand their tax concerns and questions. Many employees wonder which tax forms they need, how to claim specific credits, and how changes in tax laws affect their filing. Others may have simpler questions, like when their W2 forms will be sent or the tax filing deadline.
The best way to know what support your employees need is by asking via in-person meetings, town halls, or surveys. By identifying common concerns, HR teams can proactively address gaps in knowledge and provide targeted support to alleviate confusion and reduce stress during this critical period.
Providing Tax Education and Resources
Organize HR tax workshops for employees based on their common questions. Topics could include:
- Tax resources for employees
- Tax season support for remote workers
- Tax deadlines for employees
- Tax law updates for employees
- Tax-saving strategies for employees
HR teams can also provide access to online tax resources and tools, such as instructional videos, interactive guides, and calculators to simplify the process. Additionally, distributing informative materials like tax checklists, glossaries, FAQs, and brochures provides employees with quick access to essential information.
Offering Personalized Tax Assistance
Take the education and resources a step further by offering more individualized support for employees. Consider partnering with tax professionals who can hold office hours (physical or virtual) to provide one-on-one consultations to employees. Or, set up a dedicated tax hotline employees can call.
Provide employees with access to tax preparation software or services. These powerful tools not only streamline the filing process, but also help employees identify potential deductions they might otherwise miss. Some popular platforms even offer audit protection and year-round tax planning resources, demonstrating your commitment to employees’ financial well-being beyond just tax season.
Promoting Financial Wellness Programs
PwC’s 2023 Employee Financial Wellness Survey shows 57% of employees say finances is the top cause of stress in their lives. According to the survey results, employees facing financial stress are less productive and engaged at work.
Employers who want to support existing employees and attract new talent should offer financial wellness benefits. Beyond traditional retirement plans, consider implementing year-round financial education initiatives that include tax planning, investment strategies, and debt management workshops. By positioning tax planning within a broader financial wellness framework, organizations can help employees make informed decisions that benefit their overall financial health while potentially reducing their tax burden.
Communicating Key Tax Deadlines and Updates
Include tax information as part of your regular internal communication updates. Keep employees informed about any changes in tax laws and regulations, and send regular reminders about important tax deadlines.
To ensure timely compliance, provide early notifications for time-sensitive items like W-2 verification and benefit elections. Support these communications by maintaining an accessible online repository of tax resources and forms, and designate a point person to address tax-related questions.
Supporting Remote and Hybrid Employees
Remote and hybrid employees may face unique tax concerns depending on where they live and work. Ensure your organization provides clear guidance on navigating challenges such as multi-state tax implications, residency requirements, and potential deductions for home office expenses.
Keep employees informed about state-specific tax laws and provide resources or access to tax professionals who can assist with their questions. Regularly communicate any updates to tax regulations that may affect remote or hybrid workers, and ensure payroll systems accurately reflect their work locations. Addressing these issues proactively helps employees stay compliant and reduces potential tax-related stress.
Frequently Asked Questions
Still have questions about how HR can help during tax season? Read on.
What Are the Common Tax-Related Concerns Employees Have?
Employees often have concerns about understanding deductions, withholdings, and tax obligations, especially when life changes occur.
How Can HR Teams Provide Tax Education to Employees?
Providing tax educations to employees can be as simple as sending out regular emails with tax tips. Other ideas are holding tax seminars or setting up a tax hotline with a professional who can answer employee questions.
What Resources Can HR Offer to Help Employees During Tax Season?
In addition to the ideas above, employers can provide employees with access to a tax software program.
What Financial Wellness Programs Can Support Employees During Tax Season?
Financial wellness programs that include tax planning, investment strategies, and debt management education can help support employees during tax season.
How Can HR Communicate Important Tax Deadlines to Employees?
HR can communicate important tax deadlines through email updates, intranet posts, shared tax calendars, and other internal communication channels.
What Are the Specific Tax Concerns for Remote and Hybrid Workers?
Remote and hybrid workers may face unique tax concerns, such as multi-state tax implications, residency rules, and home office deductions.
How Can HR Keep Employees Informed about Changes in Tax Laws?
This can be done through meetings, workshops, email updates, or other communication channels the workplace uses.
How Can HR Help Employees Prepare Necessary Documents for Tax Filing?
HR can help employees prepare necessary documents by ensuring the timely distribution of W-2s, 1099s, and other required forms.
How Paycor Helps
Taxes are complicated, even for businesses. That’s why Paycor offers compliance solutions for payroll and business tax credits. The software assists companies in keeping current with tax rates and local, state, and federal regulations. The tax compliance dashboard offers proactive alerts and notifications when items need your attention and informs you of any relevant regulation updates.
With business tax support, HR teams become more available to proactively assist employees to understand their tax obligations, navigate complex tax situations, and make informed decisions about their benefits and withholdings. This financial support makes all the difference.
Take a guided product tour today to learn more.