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If you have W-2 employees you’ve paid during the year 2022, you probably need to complete Form W-3, also commonly referred to as a Transmittal of Wage and Tax Statements with the Social Security Administration.
Fast facts about Form W-3
- Employers use Form W-3 to share all the information from an employee’s annual W-2s with the Social Security Administration.
- Each year, the deadline for filing W-3s and all associated W-2s is January 31.
- Businesses with 250 or more employees must file their W-2s electronically and do not need to fill out Form W-3.
- The totals entered on your W-3 should match the totals from your submitted W-2s.
Who really needs to send in a W-3? How do you ensure you’ve filled it out completely? Read on to get all the answers and a downloadable PDF you can review and complete.
Download a PDF of Form W-3
Form W-3 is used to share information from your employees’ annual W-2s with the Social Security Administration.
What is a W-3 tax form used for?
A W-3 is used to share all the information from your employees’ annual W-2s with the Social Security Administration. It serves as a summary sheet, providing the totals for the boxes on each employee’s Form W-2. It is important to keep in mind that it must be used by employers, even if only one W-2 is filed.
Please note
If you are filing W-2 forms for more than 250 employees (and therefore required to electronically submit them), a W-3 is not required.
What do you need to fill out W-3 form?
To complete Form W-3, you will need the following:
- Form W-3 Downloadable PDF
- Your EIN number
- The total amount paid in tips, and other compensation for the year
- The total amount of federal, state, and local taxes withheld for the year
- The total amount of Social Security and Medicare taxes withheld for the year
- The total amount of deductions for dependent care assistance programs for the year
- Other compensation and benefits totals including elective deferrals for retirement plans and the cost of employer-sponsored health coverage for the year
What’s the deadline for filing my 2022 Form W-3?
Your W-3, along with the corresponding W-2s, needs to be filed by January 31, 2023.
Instructions for filling out Form W-3
Boxes A-H are for information about your business from the type of organization you are to your employer identification number (EIN) and even your address. Fill each of these in. You may also want to enter the name and contact information for any employee that is authorized to speak to the Social Security Administration should any questions come up along the way.
Next, you’ll fill out the numbered boxes:
- Boxes 1 through 8 – Enter the totals for each of the corresponding boxes on the W-2s you submit for your employees.
- Box 9 – It is not a fillable box and IRS instructions say not to list an amount.
- Box 10 – Dependent care benefits. Enter the total from box 10 of your W-2 forms.
- Box 11 – Nonqualified plans. Enter the totals reported in box 11 on the W-2s submitted.
- Box 12a – Enter the total of all amounts reported using codes D through H, S, Y, AA, BB, and EE in box 12 on Form W-2.
- Box 13 – For third-party sick pay use only – this box should be left blank.
- Box 14 – This box should only be filled out if your employees had federal income tax withheld from third-party sick pay.
- Box 15 – Enter your state ID. If the W-2s being submitted with your W-3 contain wage and tax information for more than one state or territory, just enter an X under State without entering a state ID.
- Boxes 16 -19 – Enter any state or local wages reported on W-2s submitted.
Be sure to verify that the totals entered on your W-3 correspond with the totals from the W-2s you submitted. You’ll also want to double-check that the totals on your W-3 match those submitted on your 941, 943, or 944 forms throughout the year.
And that’s it!
If you’re using a full-service payroll service provider, both your W-2s and W-3 will probably be filled out automatically. Those businesses with 250 or more employees will need to file their W-2s electronically and will not need to complete Form W-3.
For additional instructions and information on Form W-3, visit the IRS website.
Please note all material in this article is for educational purposes only and does not constitute tax or legal advice. You should always contact a qualified tax, legal or financial professional, in your area for comprehensive tax or legal advice or if you’re unsure of your obligations.
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Erin Ellison is the former Content Marketing Manager for OnPay. She has more than 15 years of writing experience, is a former small business owner, and has managed payroll, scheduling, and HR for more than 75 employees. She lives and works in Atlanta.