Ask anyone how they’re celebrating the return of tax season, and be prepared to enjoy an orchestra of crickets (and collective groans).
It’s a necessary evil that we face every year, and as workforces grow, we’re learning that younger employees (aged 30 and under) aren’t as prepared to file—some even thinking they don’t need to.
A recent survey by Talker Research on behalf of TurboTax found that nearly 25% of Gen Z employees believe they don't need to file tax returns. And the 75% that are preparing to file aren’t as eager to get the process started—in fact, they’re too anxious about messing up to begin.
Considering nearly two-thirds of 18- to 35-year-olds hold side jobs and juggle multiple incomes to make ends meet, it’s no wonder they feel heightened stress during tax season. But with Gen Z being the digital natives they are, it’s easy to put the right resources, education, and reminders in their hands with help from your organization’s digital wellness hub.
Doing so won’t only ease Gen Z’s mounting financial stress—but leveraging their digital fluency will naturally complement benefits utilization and wellness program engagement.
Why Tax Season Isn’t Passing the Vibe Check
As our economic landscape grows more and more unpredictable, the days of the traditional 9-to-5 job are numbered for younger members of the workforce.
Adults under 30 have never felt more financially insecure, with 65% searching for multiple income sources just to put food on the table. This lack of security has propelled nearly half of Gen Z (and even some Millennials) to develop crippling financial anxiety, making tax season equivalent to a Freddy Krueger-style nightmare.
When asked which aspects of financial management created the most stress during tax season, Gen Z had this to say:
- 33% feared making a mistake
- 18% worried their information could fall into the hands of scammers
- 15% were concerned they would owe more money than they could afford
To cope with this mounting financial stress, it’s not uncommon to see Gen Z and Millennials take on side gigs for extra cushion. Despite already feeling burned out and overworked, looming threats of a nationwide recession, the return of student loan payments, and controversial tariffs are propelling 65% of young workers to continue pursuing side jobs well beyond 2025.
But the biggest reason Gen Z and Millennials feel the pressure during tax season?
Simply put, they don’t know how to file—or even where to begin.
In the eyes of a young employee, the world of W-2’s, 1099’s, and the IRS are intimidating to say the least, especially when you don’t know where to look for help. The concerning reality is that nearly 10% of Gen Z employees turn to social media sites like Instagram and TikTok for tax advice, and they’re the most hesitant demographic to pursue professional help, per a recent IRS survey.
This year alone, many young workers also plan to utilize artificial intelligence like ChatGPT and Gemini to help with their taxes, citing a lack of impactful and accessible resources from their employers as their top roadblock.
The Financial Wellness Connection
Like any other stressor, tax season creates undue financial strain on a sizable portion of today’s workers. With Gen Z making up over a third of the country’s workforce, their increasing financial worries create ripple effects that impact the companies they work for.
When taxes and budgeting consume the mind, workplace productivity is often the first to buckle from the weight. A recent survey shows that nearly 60% of employees lose focus during tax season, leading to a 17% drop in output and costing organizations roughly $300 per affected employee in lost productivity.
The hit to employee mental health is obvious during tax season, but the numbers reveal a sobering reality for Gen Z. Tax worries have been linked to a 28% increase in sleep quality for workers under 30, leading to an 8% increase in absences during peak tax season. Team morale and collaboration also suffer as a result, with departmental cohesion scores dropping by nearly 15% come time to file.
The scary truth for employers? These worries last beyond filing day, affecting half of Gen Z workers' financial planning year-round and stunting their career growth aspirations. The end result often looks like decreased engagement, ruptured social connections, and bottomed-out retention rates.
Gen Z Employees' Weapon for Conquering Tax Season? Digital Fluency
Fortunately, employers don’t need to lose hope in Gen Z workforces during tax season. In fact, younger workers are more likely than any other demographic to utilize a key resource present in every company—digital benefits platforms.
Gen Z's natural comfort with technology gives them an edge in handling complex tax filing requirements, despite widespread misconceptions. These digital natives are the most receptive to targeted resources that are tailored to help with specific tax preparation challenges, so long as they’re easily findable, digestible, and proactive.
To give your young workers a leg up before Tax Day, here are three quintessential tools for your platform that can alleviate stress, spice up education, and maximize benefits utilization.
1. Digital Resource Hub
To bridge the tax knowledge gap, young workers need enhanced support from their employers to know which documents they need, what common terms mean, and which e-filing sites are credible. With a native resource hub, employers can upload everything from comprehensive terminology guides to step-by-step videos that match what Gen Z already knows about taxes.
✅ Pro for Workers: New filers can learn the basics, while those managing side gigs can find specific guidance about self-employment taxes.
✅ Pro for Employers: Platform admins can put tailored resources in the hands of digitally fluent employees, all without lifting a finger or shelling out money to third-party vendors.
2. Timely Deadline Reminders
Alert systems are the most effective ways to help young employees know what important deadlines are coming—and how to prepare. Displaying vital due dates at the top of your wellness platform aims to reduce the stress of last-minute filing, and targeting communications ensures these reminders hit the right people.
✅ Pro for Workers: Messages and reminders about when taxes are due, which documents are needed, and where to find them can reach employees well ahead of time so they can sufficiently prepare.
✅ Pro for Employers: From spotlighting impactful alert banners to coordinating targeted communications—all from the same platform—employers can ensure their messaging meets employees wherever they are, without having to toggle between multiple tools.
3. Financial Planning and Budgeting Tools
Gen Z and Millennials know their way around a digital interface, which makes them willing and eager to participate in digital wellness activities centered around financial management. From daily budgeting and stress management challenges that can be tracked through text, app, and desktop to group saving competitions with interactive leaderboards, financial planning doesn’t have to be anxiety-inducing—it can actually be fun and motivating.
✅ Pro for Workers: Tracking purchases and dollars saved is as easy and instantaneous as sending a text, making year-round financial management a cinch for busy employees juggling multiple jobs.
✅ Pro for Employers: Not only are text and app tracking ideal participation criteria for digitally fluent employees, but making challenges available beyond Tax Day keeps financial wellness alive all year long, prolonging engagement and building healthier habits.
Swipe Up to File: Helping Gen Z Survive Their First Tax Season
Gen Z workers face unique tax challenges that other members of your workforce never had to worry about. Fortunately, with your company’s virtual wellness platform and their digital proficiency, you’ll not only allow them to find the educational and stress support they need—you’ll also unlock maximum engagement potential.
Have a wealth of helpful tax resources but nowhere to streamline them? Our highly-trained experts can help you design the perfect digital space for resource uploads, mental health support, and more. Reach out now to get started.
