How long must an employer keep undeliverable copies of an employee's Form W-2?

The requirement for how long an employer must keep undeliverable copies of an employee's Form W-2 is four years. This duration is derived from the Internal Revenue Service (IRS) guidelines, which mandate that employers retain records related to employment taxes and employee earnings for at least four years after the due date of the tax return or the date the tax is paid, whichever is later.

Since undeliverable W-2s pertain to employee income and tax reporting, they are included in this record retention requirement. Keeping these records for four years allows employers to respond to any potential inquiries or issues related to those W-2 forms. This timeframe is important not only for compliance but also for ensuring that employees can receive accurate reporting of their earnings and taxes paid, even if the initial delivery of these documents fails.