Every employer engaged in a trade or business who pays remuneration, including non-cash payments of $600 or more for the year (all amounts if any income, social security, or Medicare tax was withheld) for services performed by an employee must file a Form W-2 for each employee (even if the employee is related to the employer) from whom:
- Income, social security, or Medicare tax was withheld.
- Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4, Employee's Withholding Allowance Certificate.
W-2 Filing Requirements
The newly released IRS regulations have lowered the threshold for having to electronically file forms from 250 to 100 for this filing season. This new regulation includes the total for all aggregated forms filed.
In addition to filing Form W-2 to the SSA, you may be required to file a transmittal (cover sheet). If you are sending paper copies to the IRS you will need to include Form W-3. This transmittal is not required if you are filing electronically.
If your business is required to file Form W-2, you will need to provide multiple copies. To avoid penalties, make sure to send the correct copy to the correct audience - when applicable.
For Social Security Administration
Filed with Employee's Federal Tax Return
For Employee's Records
For State, City, Local Tax Department
Filed with Employee's State, City, Local Income Tax Return