Are FHA approved lenders required to report all income of its employees on a W-2 to the IRS?

The lender must compensate employees on one of the following bases:

‒    a salary;

‒    a salary plus commission; or

‒    a commission only.

The lender may pay bonuses with any of these three compensation plans; however, all employee compensation must be reported on IRS Form W-2.

For additional information see Handbook 4000.1:I.A.3.c.iv.(B)(3)(b)(ii) at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.