Why ask for w2

Neither members nor non-members may reproduce such samples in any other way e. Employers may be tempted to ask job applicants for a copy of their W-2 form to verify employment and compensation, but that practice comes with substantial legal risks, according to employment attorneys. HR professionals may want to look at a job candidate's W-2 for a number of reasons:. He noted, however, that certain state laws may ban such inquiries or prohibit employers from asking for the information found on the form.

For example, Rhode Island law prohibits employers from asking for W-2s and other tax related documents, and Massachusetts recently passed a law that will ban salary history inquiries until a conditional employment offer is made. But Doran and Glasser both said they don't endorse the practice. Most workers are familiar with IRS Form W-2 because they receive a copy each year from their employer.

The form summarizes a worker's earned wages, withheld taxes and other information that is used to prepare tax returns. There are several legal risks for businesses that request this document from potential hires. Not only do some states prohibit the practice, some also don't allow employers to request a job applicant's Social Security number until after making a conditional offer of employment, Glasser explained.

Furthermore, some states and local jurisdictions have banned—or are considering banning—salary history questions until an employer extends a conditional job offer. In additional to Massachusetts, Philadelphia passed a law banning such salary history questions, and California and other states are considering similar legislation.

Some states may also construe a W-2 request to be an unlawful invasion of privacy, Doran added. Even where employers are permitted to ask for a W-2, there are many considerations to take into account before doing so, Glasser said. The W-2 bundles wages, tips and other compensation together, so it may not provide the prospective employer with all the information it seeks about someone's compensation history, he explained. Learn More. Go to Resource Library. Contact Us.

So it would generally be considered an inappropriate human resources practice to make a job offer based on your prior earnings rather than on the character of your target job. Many employers have enacted policies forbidding the release of confidential information about past or current employees. So, it is unlikely that your past employers will agree to divulge any salary information to prospective employers. What's the best way to handle it if you're asked about your salary history?

Unfortunately, if you want to be considered for the position, it will be hard to refuse a request for salary documentation where it is legal. Ask about an offer. What you can do, however, is ask whether the employer is considering making an offer.

If the answer isn't positive, you can say you would prefer to wait until an offer is pending. At that point, the employer might be sold on your value and more likely to offer an attractive salary. Ask about salaries for similar jobs.

You could also ask for average salaries for similar positions at the company, so you have an idea of what salary to expect and alert the employer that you expect to be paid like employees in comparable jobs. Consider benefits and perks. If your current job carries a lower salary but has other compensating factors like stock options or a superior benefits plan, you should mention these factors.

Mention why you're seeking a new job. If your current salary is referenced in salary negotiations , it is appropriate to mention that enhancing your salary is a significant reason you are targeting a new job. You can also point out the differences in the positions and your expectation to be paid comparably to other employees carrying out that role for their firm. If you don't have copies of your past W-2 forms, you can ask your employer s or its payroll company for a copy.

You can also order copies of your W-2 or a transcript of your W-2 earnings if you filed electronically directly from the IRS. They say they need them to verify my income and employment history, and that this is the next step to move forward to further interviews.. Am I just being paranoid?

I have never heard of this before. The information an employer is usually looking for on these documents employment and salary history can often be obtained through better methods and the employer is risking a lot themselves by making this request.

Not to mention the downside of turning off potential job candidates because of the sensitive and confidential nature of these documents.

However, there are some states and cities that have created laws that DO prohibit this practice. These laws often prohibit employers from asking for these documents at all while others require that they can only be asked for after a job offer had been presented to the candidate.

As a job seeker, it would be important to research your local and state laws to see what is allowable or not as an employer may be breaching the laws with this request. I personally have some major concerns with this type of request. First and foremost, our W-2s do contain sensitive and confidential information including our social security numbers. There are definitely valid concerns here around privacy and potential identity theft.

Who knows what else a company may do with that data. In most cases, however, employers are most interested in your employment and income history when they request your W-2s. There are better ways for employers to obtain this information. Most good companies will call employers referenced on a resume and ask to speak to a Human Resource representative who can verify employment dates and salary. Companies can also present a job offer to a candidate and make it contingent on the verification of this information.

At this point, job candidates can feel more confident about providing their W-2s, if needed, since the job offer has been presented. I recommend that job candidates redact their social security numbers from these documents before submitting them to an employer in these cases.