You really want the W2? So you can pay taxes on that money. Why would you allow this type of fraud? Married or something is wrong here that you need to fix.
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Agreed, this is fraud, and can be a very big deal. Are you compliant in this, or is this just something she did one day and you are trying to deal with it? If you are not compliant, you need to stop this right away as you both could face serious charges.