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:
- Gather information to prepare form(s).
- Check for accuracy.
- E-file and distribute form(s).
- Check the deadlines.
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