I've wondered the same thing. This year the state asked me to supply a paper copy of my W2 to verify my electronic return submission. Are things so messed up at the state level that they don't know who paid what and when? Why couldn't they just look up in their database that says I paid $X and it matches box 3 on form Y. For extra credit they could do this using this new technology called a computer.
I don't see anything on there where the employer would break down the payroll tax by employee. Does anyone know if there's some other mechanism for this? Do employers send all W-2s to the IRS?
