What is Form W-3?
- Form W-3 is a summary for all business’ employee wages and contributions for the previous year.
- Form W-3 shows the Internal Revenue Service (IRS) the total amount the employer paid to their employees, as well as the federal income, Social Security, and Medicare taxes withheld from the employees.
- Form W-3 accompanies Form W-2 and summarizes its information.
Who should file Form W-3?
- Employers are responsible for the accomplishment of Form W-3.
- In turn, employees are required to accomplish Form W-2.
Why should Employers file Form W-3?
- The purpose of Form W-3 is to summarize and transmit an employer’s W-2 forms.
- Form W-3 tracks the wages, salary, commission, tips, and other compensation employers pay throughout the year.
How to fill out Form W-3?
The process of filling out Form W-3 is straightforward and has a similar format as Form W-2. Before filling out Form W-3 though, take note of the following necessary information and items beforehand:
- Your Employer Identification Number (EIN)
- 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 compensations and benefits totals including elective deferrals for retirement plans and the cost of employer-sponsored health coverage for the year
- Mailing Address
- Form W-2
Boxes a-h asks for employer information. Fill these boxes out accurately.
a. Control Number
b. Kind of Payer/Kind of Employer/Third-party sick payer (if applicable)
c. Total number of Forms W-2
d. Establishment Number
f. Employer’s name
g. Employee’s address and ZIP Code
h. Other EIN used this year
After, there will be numbered items from 1 to 19 which you will need to fill out as well. These items ask about the total wage and tax information for all employees.
For Boxes 1-8, enter the information of your employees’ in the corresponding boxes from Form(s) W-2.
- Wages, tips, and other compensations
- Federal income tax withheld
- Social Security wages
- Social Security tax withheld
- Medicare wages and tips
- Medicare tax withheld
- Social Security Tips
- Allocated tips
For Box 10, enter your dependent care benefits the same as the total written in Box 10 of your Form W-2.
For Box 11, enter your nonqualified plans the same as the total written in Box 11 of your Form W-2.
For Box 12a, enter the total amounts of your deferred compensation using codes D through H, S, Y, AA, BB, and EE in Box 12 of your Form W-2.
Box 13 is to be left blank if there are no third-party sick payers.
Box 14 is only to be filled if employees had their federal income tax withheld from third-party sick pay.
For Box 15, enter your State ID.
For Boxes 16 to 19, report the state and local wages written down on the W-2 Form(s) submitted.
It is recommended that a copy of the Forms(s) be made and kept with Copy D (“For Employer) of Form(s) W-2 for about 4 years.
When should Forms W-2 and W-3 be submitted?
Form W-2 and Form W-3 should be filed by February 1, 2021. The deadline is for both paper and electronic filing.
Where should Forms W-2 and W-3 be submitted?
File paper forms to Social Security Administration, Direct Operations Center, Wilkes-Barre, PA 18769-0001.
The SSA provides two free e-filing options on its Business Services Online (BSO) website.
- W-2 Online - use fill-in forms to create, save, print, and submit up to 50 Forms W-2 at a time to the SSA.
- File Upload - Upload wage files to the SSA you have created using payroll or tax software that formats the files according to the SSA’s Specifications for Filing Forms W-2 Electronically (EFW2).
While Form W-2’s copies go out to your employees, the SSA, and other applicable tax agencies, Form W-3 only has one copy and goes to the SSA only.
- Form W-2 and Form W-3 have separate instructions (see 2020 General Instructions for Form W-2 and Form W-3 for information on completing this form).
- Do not file Form W-3 or Form(s) W-2 that were submitted electronically to the SSA.
- Do not file Form W-3 alone.
- All paper forms must comply with the IRS standards
- Photocopies are not allowed
- Make sure all information written on Form W-2 and Form W-3 are correct
- IRS Form W-3 provides a compiled list of employee information included in all the forms of Form W-2.
- The W-3 is not a standalone form - only file it with copies of all your W-2 form(s).