The President's 2011 Budget proposal would require quarterly W-2 reporting. The proposal states that the Administration will work with the States so that the overall reporting burden on employers is not increased.
This is only a proposal but, if this provision gets passed, I just can't wait to see how this is not going to increase the reporting burden on small business. Small businesses would have to report MORE payroll detail increasing the chances for error. Electronic reporting generally reduces error but there are still a lot of small businesses who do not report electronically.
http://www.whitehouse.gov/omb/budget/fy2011/assets/socsec.pdf
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