Form W-2 is used to report wages paid to employees. An employee is defined by the IRS as a worker who is employed by the company and whose work is controlled and directed by the company.
The IRS states that a Form W-2 must be filed for each employee for whom the following applies:
- You withheld any income, social security, or Medicare tax from wages regardless of the amount of wages;
- You should have had to withhold income tax if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4;
- You paid $600 or more in wages even if you did not withhold any income, social security, or Medicare tax.
There are very limited exceptions to having to file a Form W-2, including if you were not required to withhold any income, social security, or Medicare tax and if you paid the employee less than $600.
Need More Information?
For more information on Form W-2 filing, please view the IRS Instructions or check out our other blog posts linked below:
- Form W-2 Guide
- W-2 State Reporting Guide
- Prepare Form W-2
- TY 2018 W-2 Deadlines
- TY 2018 Penalties
- Distribute Form W-2
- Common W-2 Errors
- Form W-2c Guide
- W-2 vs. 1099-MISC: How to Report Wages
- How to Correct Form W-2 Using Form W-2c
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BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.