Even though some businesses are choosing the electronic route, don't discount paper-based forms just yet. While the IRS may be close to reaching some of its e-filing goals, there are other factors to consider.
"The IRS has a goal to have 75 percent of all W-2 files to be done electronically by 2015; currently, they are at 59 percent according to an IRS study made in 2008 to 2009. With the technology that is available, it seems that they may get close to accomplishing that goal," Magdaleno stated. "But even given this fact, consider this, in most cases a paper copy is printed for distribution and/or a file copy. And for every W-2 that is generated the 1099 family of forms is needed by 10 to 20 times greater. That means while a local business with 20 to 30 employees might need 50 W-2 forms, they could require as many as 5,000 1099 forms."