Final answer:
A company with 538 employees is required to file Forms W-2 electronically.
Step-by-step explanation:
A company with 538 employees is required to file Forms W-2 electronically. According to the IRS, if a company has 250 or more Forms W-2 to file, they must be submitted electronically. This requirement aims to streamline the process and ensure timely and accurate reporting of employee wages and tax withholdings.