How to avoid W-2 and 1099 Tax Form Fees in QuickBooks Online Payroll

W2 Tax Forms

QuickBooks Online Payroll users should know about a new fee that could impact your year-end preparations. For filings for the 2025 tax year, Intuit will charge $6 per W-2 and 1099 form mailed to employees or contractors. The good news? You can avoid this fee by switching to electronic delivery, saving money and time.

What Is the Fee?

QuickBooks Online Payroll now includes a $6 fee for each physical W-2 and 1099 form printed and mailed to your employees or contractors. Intuit will mail the forms automatically if you don’t take action, and the fee will be applied for every form sent.

However, electronic delivery remains free and offers a faster, more efficient way to distribute tax forms securely. You can avoid these fees and simplify your tax season by opting for electronic-only delivery.

How to Avoid the Fee: Step-by-Step Guide

Switching to electronic delivery is easy. Here’s how you and your employees can update your QuickBooks Online Payroll settings:

  1. Log in to QuickBooks Online Payroll.
  2. Go to the Payroll Settings section.
  3. Update your preferences to enable electronic delivery only for W-2s and 1099s.

Once you’ve updated your settings, employees and contractors will be able to access their tax forms through QuickBooks Workforce, a secure online portal that is free to use.

Why Intuit Introduced This Fee

The new fee aligns with Intuit’s broader push toward digital solutions. Electronic delivery is cost-effective, better for the environment, and more secure than mailing physical forms. Intuit aims to make tax form distribution faster and more efficient for everyone involved by encouraging businesses to switch to electronic delivery.

The Benefits of Electronic Delivery

Beyond avoiding the $6 fee per form, electronic delivery comes with several advantages:

  • Speed: Employees and contractors can access their forms immediately through QuickBooks Workforce.
  • Security: Digital forms reduce the risk of losing sensitive information in the mail.
  • Convenience: No more printing, postage, or tracking mailed forms.

What About QuickBooks Desktop Payroll Users?

If you’re using QuickBooks Desktop Payroll, this new fee does not apply. QuickBooks Desktop Payroll users can e-file W-2 forms for free, though e-filing 1099s does require a separate fee. If you manage both QuickBooks Online and Desktop Payroll, remember these distinctions as you prepare for tax season.

Plan Ahead for a Smooth Tax Season

The $6 fee for mailing W-2 and 1099 forms is an important update for QuickBooks Online Payroll users. By switching to electronic delivery, you can save money, reduce hassle, and simplify tax form distribution for your business.

Need help updating your settings or managing payroll? We’re here to assist. Let’s make this tax season seamless for you and your team.

The Bottom Line

Don’t wait until the last minute to update your payroll preferences. Switching to electronic delivery is a smart move that benefits your business, your team, and the environment. Take action today and enjoy a hassle-free tax season.

FAQ

What payroll tax form fees does QuickBooks Online charge?

QuickBooks Online Payroll may charge fees for preparing and filing certain payroll tax forms, depending on your subscription level and filing method.

When do payroll tax form fees typically apply?

Fees often apply when tax forms are filed outside of included services, require manual handling, or fall outside automated filing coverage.

Are tax form fees avoidable in QuickBooks Online Payroll?

In many cases, yes. Choosing the right payroll plan, enabling automated tax filings, and keeping payroll data accurate can help avoid unnecessary fees.

Do all QuickBooks Online Payroll plans include tax form filing?

No. Coverage varies by plan. Some plans include automated filing and forms, while others charge additional fees for certain filings.

How can businesses reduce payroll tax filing costs overall?

Reviewing payroll settings, understanding plan limits, and working with a payroll advisor can help reduce errors, avoid penalties, and minimize added filing costs.

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