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Updated: January 13, 2024
If you have W-2 employees who you paid during 2023, you probably need to complete and file Form W-3, also known as the “Transmittal of Wage and Tax Statements,” with the Social Security Administration (SSA).
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.
Form W-3 is used to share information from your employees’ annual W-2s with the Social Security Administration.
Form 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.
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.
Most, but not all, employers are required to file a Form W-3 annually.
Additionally, payroll software will often assist in filing form W-3 by summarizing the amounts from Forms W-2 for you, making the process even easier.
While Forms W-2 and W-3 ultimately report the same information, there are some important differences you should keep in mind when filling out these forms.
Form W-2 reports each individual employee’s employment information, such as the wages they receive, taxes withheld from their paychecks, social security and medicare tax withholdings, health insurance they receive, stock options, and more. This is a high-level overview of Form W-2. To learn more, check out this article on what a W-2 is and how to file it.
While Form W-2 reports each individual employee’s information, Form W-3 reports a summary of ALL employee’s information (even if you only have one employee). It gives the Social Security Administration the totals of all your employee’s wages, taxes withheld, social security and medicare taxes, health insurance, stock options, and more. This allows the SSA to verify that your employees are having the proper tax and social security amounts withheld from their pay.
To complete Form W-3, you will need the following:
Your W-3, along with the corresponding W-2s, needs to be filed by January 31, 2024.
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. Make sure you 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 in case any questions come up along the way.
Next, you’ll fill out the numbered boxes:
Be sure to verify that the totals entered on your W-3 correspond with the totals from all of the W-2s you submitted for the year. 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 do not need to complete Form W-3.
For additional instructions and information on Form W-3, visit the IRS website or contact a CPA or tax professional.
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.
Yes, all employers with 249 employees or less are required to file a Form W-3 for each year they paid employees and filed Form(s) W-2. The IRS charges penalties for filing the form late (after January 31st) or for neglecting to file it at all, so be sure to file Form W-3 on time if you’re required to!
The answer could be yes or no – the numbers on your Form W-3 need to match the totals of all Form(s) W-2 you filed for the year. If you filed only one Form W-2, then your W-3 should match it. If you filed multiple W-2s, then your W-3 should include the totals of all of them.
You can either file your Form W-3 by paper or electronically. If you choose to file by paper, you’ll need to mail the W-3 to the Social Security Administration (SSA) to the address listed below the form here. If you choose to file electronically, then you’ll need to login or create an account with the SSA and submit your Forms W-2 and W-3 here.