The Internal Revenue Service website provides detailed instructions for filing a W-2 form, and the tip sheet is updated for each new tax year. It describes the types of taxable income individuals are required to report and how the IRS defines an employer-employee relationship.
The federal government makes it mandatory for all employers to file W-2 forms on behalf of any employees paid for services. To qualify as an employer, businesses must pay out a minimum of $600 per tax year. Employers are also required to submit form W-3 with their W-2 forms, because it provides a collective summary of the total payments made to employees.