How to Fill Out and File a W-3 Form Correctly

Form W-3, officially known as the Transmittal of Wage and Tax Statements, serves a fundamental purpose in the annual payroll reporting process for employers. This document acts as a summary sheet, accompanying and transmitting all individual Forms W-2, Wage and Tax Statement, to the Social Security Administration (SSA). Employers who file paper Forms W-2 are typically required to file a paper W-3 along with them. If an employer files Forms W-2 electronically, a separate W-3 is generally not needed, as the transmittal information is incorporated directly into the electronic submission process.

Gathering Information for the W-3

Before beginning the completion of Form W-3, it is necessary to ensure that all individual Forms W-2 for the tax year are accurately prepared and finalized. The W-3 acts as a summary of these W-2s, meaning all the data points on the W-3 are direct aggregations of the corresponding information from every W-2 issued by the employer for that year.

For instance, Box 1 on the W-3 will show the total “Wages, tips, other compensation” paid to all employees, which is the sum of all amounts in Box 1 across all individual W-2 forms. Similarly, Box 2 will contain the total federal income tax withheld from all employees’ wages.

Box 3 on the W-3 summarizes the total “Social Security wages” for all employees, and Box 4 reports the corresponding total “Social Security tax withheld.” The combined “Medicare wages and tips” for all employees are entered in Box 5, with the total “Medicare tax withheld” appearing in Box 6. Beyond these wage and tax summaries, the W-3 also requires the employer’s identification details, including the Employer Identification Number (EIN), the employer’s name, address, and contact information.

Completing the W-3 Form

Once all necessary information has been gathered and summarized from the individual Forms W-2, the process of accurately completing the W-3 form can begin. The form starts with boxes dedicated to employer identification, such as the Employer Identification Number (EIN), the employer’s legal name, and physical address. These details must precisely match the information reported on related employment tax forms, such as Form 941, Employer’s Quarterly Federal Tax Return.

Following the employer identification, the form requires the aggregated wage and tax data. The W-3 also includes specific checkboxes that require careful selection based on the employer’s situation. These include fields like “Kind of Payer” and “Kind of Employer,” where options such as “941” (for most employers filing quarterly), “Military,” or “Household employer” must be chosen. There may also be a checkbox for “Third-party sick pay” if applicable. Providing accurate contact person information and a signature in the designated fields completes the form, certifying the accuracy of the reported information.

Submitting Your W-3 and W-2s

After the Form W-3 has been thoroughly completed and verified, it is ready for submission along with the corresponding Forms W-2. For those employers choosing to file on paper, the W-3 (Copy A) must be mailed together with Copy A of all Forms W-2 to the Social Security Administration (SSA). Specific mailing addresses are provided in the IRS instructions for Forms W-2 and W-3, which vary depending on the employer’s location.

Electronic filing (e-filing) is the preferred and often required method for submitting W-2s and W-3s. Employers filing 10 or more Forms W-2 are generally mandated to file electronically through the SSA’s Business Services Online (BSO) system.

The annual deadline for submitting both paper and electronic Forms W-2 and W-3 to the SSA is typically January 31st. If this date falls on a weekend or holiday, the deadline shifts to the next business day. Employers should retain copies of the filed W-3 and all W-2s for their records, generally for a minimum of four years, to ensure compliance and for future reference.

Correcting a Filed W-3

Discovering an error on a W-3 form that has already been filed requires prompt corrective action. Corrections to a previously submitted W-3 are made using Form W-3c, Transmittal of Corrected Wage and Tax Statements.

Form W-3c is typically filed in conjunction with corrected W-2s, known as Form W-2c, Corrected Wage and Tax Statement. The process involves completing the W-3c with the updated information, reflecting the net changes from the original submission.

It is important to file Form W-3c as soon as an error is identified. The form requires the employer’s identification details, along with the corrected wage and tax totals from the W-2c forms. Electronic filing options are also available for W-3c and W-2c forms through the SSA’s Business Services Online, which can streamline the correction process.