W-3 Tax Form

What is a W-3 Tax Form?

W-3 Tax form is an overview of total earnings, Social Security Wages, Medicare Wages, and withheld taxes reported by employees on their W-2 Forms.

The IRS refers to it as the Transmittal of Wage and Tax Statements and defines it as “a summary form accompanying W-2 forms when they are sent to the Social Security Administration (SSA)”.

What are the key components of the W-3 Form?

The key components of a W-3 form include:

• Employer information: Includes the employee’s name, address, EIN.
• Totals from W-2 Forms: Summarizes the total wages, Social Security Wages, Medicare Wages, and taxes reported on the W-2 forms.
• Tax Year: Specifies the calendar year for which the wages and taxes are reported.

Who needs to file Form W-3?

Any employer who files W-2 Forms must file a W-3 to transmit Copy A of the W-2 Forms. Employers must file it before January 31st each year, either electronically through the SSA’s BSO portal or by mail using paper forms.

How does it impact organizations?

For organizations, particularly HR departments, ensuring the timely and accurate filing of W-3 forms is crucial for compliance with IRS and SSA regulations. Errors or delays in filing can result in penalties or, in extreme cases, the termination of Social Security and Medicare benefits.

Thus, the W-3 Form is essential to the year-end payroll process and ensures federal laws and regulations compliance.