Form W-3
Meaning & Definition
Form W-3
Form W-3, which is the Transmittal of Wage and Tax Statements, is a summary form accompanying all Forms W-2 submitted by an employer to the Social Security Administration (SSA). It summarizes the wages and taxes for employees under all W-2 forms issued for the year.
The form has totals for wages, tips, compensation, Social Security wages, Medicare wages, and taxes withheld. It is meant to ensure that the SSA will have up-to-date, accurate annual payroll data records for both employees and employers at the end of each year. Form W-3 must be filed with the W-2 forms by January 31 each year, whether electronically or via hard-copy submission.
Employees do not use the W-3 form, but it is important for payroll legal compliance and accurate record keeping with Social Security and IRS reporting requirements.
Frequently Asked Questions (FAQs)
What is the purpose of Form W-3?
The SSA receives an annual summary of employee wages, tips, and tax withholdings for proper record keeping and accountability through employers who submit Form W-3.
Who must file Form W-3?
All employers who file more than one W-2 form for their employees should file just one W-3 form with the SSA to summarize W-2 information.
When is Form W-3 due?
It must be filed annually by January 31, together with the W-2 forms, whether filing electronically or on paper.
Is Form W-3 filed with the IRS or SSA?
Form W-3 is filed with the SSA but not the IRS. Information relevant to this will be shared between the two for tax enforcement and verification purposes.
What is the difference between W-2 and W-3?
A W-2 reports wages and tax withholdings for an individual employee, but a W-3 summarizes all W-2s issued by the company for the year.
Can Form W-3 be filed electronically?
Yes. You may use the SSA's Business Services Online (BSO) to file W-2 and W-3 forms electronically into a secure environment.
What happens if Form W-3 has mistakes?
Employers must submit Form W-3c (Corrected Transmittal of Wage and Tax Statements) along with corrected W-2c forms to rectify any errors.
Are self-employed people required to file Form W-3?
No, self-employed people without employees do not file W-2s or W-3 forms.
What penalties apply to a delayed filing of W-3?
Late or incorrect filing penalties generally range from $60 to $310, depending on how long the filing remains overdue.
May an employer submit more than one W-3 form?
Normally, only one original W-3 is filed per EIN per year. Additional W-3s may be needed only for corrections or specific filing scenarios.
Where to get Form W-3?
The IRS and SSA websites provide fillable and printable versions of Form W-3, as well as filing instructions.
