In what scenario would an employer not need to file a W-2 form for an employee?

Employers are generally required to file a W-2 form for each employee to report their annual wages and the taxes withheld. However, one scenario where an employer does not need to file a W-2 is when the employee is a relative. According to the IRS guidelines, wages paid to certain family members, such as a spouse or child, may not require the employer to issue a W-2 in specific contexts, particularly if the employer is a sole proprietor or in certain partnerships.

In other scenarios, such as an employee earning less than $600 or being compensated through stock options, there are specific rules that typically still require a W-2 to be issued. Similarly, working from home does not exempt an employer from the obligation to file a W-2 if the employee meets the criteria of a reportable employee. Thus, the key consideration for the correct answer lies in the familial relationship, which can alter the filing requirements.