IRS Form W-3 is a summary page used by employers to report the total earnings, Social Security wages, Medicare wages, and withholding for all employees for a given tax year. This form accompanies Form W-2, which is the primary document used to report individual employee earnings. The critical aspect of Form W-3 is that it aggregates the information on all the W-2 forms the employer issues.
Employers must file Form W-3 whenever they send W-2 forms to the SSA. It is important to note that even if you submit W-2 forms electronically, a Form W-3 is still required. The deadline for filing Form W-3 aligns with the W-2 deadline, which is typically January 31st of the year following the reported tax year.
Filling out Form W-3 requires attention to detail as it must accurately reflect the totals from the W-2 forms. Here’s a simplified step-by-step guide:
Employer information: Include your Employer Identification Number (EIN), employer's name, address, and ZIP code.
Total amounts: Enter the total amounts from all W-2 forms for wages, tips, other compensation, federal income tax withheld, Social Security wages, Social Security tax withheld, Medicare wages, and Medicare tax withheld.
Verification: Ensure that the totals match the sums of the individual W-2 forms to avoid discrepancies.
Signature: The form must be signed by the employer or an authorized representative.
The Social Security Administration encourages employers to file Form W-3 and W-2 electronically. The electronic filing system, known as Business Services Online (BSO), offers a secure and efficient way to transmit these forms. Employers can benefit from quicker processing times and immediate confirmation of receipt.
Failure to file a correct Form W-3 by the due date can result in penalties from the IRS. These penalties vary based on the size of the business and the delay in filing. Therefore, timely and accurate submission is crucial.
