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The IRS W-3 form plays a crucial role in the annual tax process for employers and the Internal Revenue Service. This form serves as a summary of all W-2 forms issued by an employer, providing a comprehensive overview of wages paid and taxes withheld for the year. Each year, employers must submit the W-3 along with the W-2 forms to report their employees' earnings and tax information accurately. The W-3 includes essential details such as the total number of W-2 forms being submitted, the total wages paid, and the total federal income tax withheld. By consolidating this information, the W-3 helps ensure that the IRS has a complete record of an employer's payroll activities. It also assists in the accurate processing of employees' tax returns. Understanding the importance of the W-3 form can help employers fulfill their reporting obligations and avoid potential penalties. With the right knowledge and preparation, navigating this requirement becomes a manageable task.

Key takeaways

The IRS W-3 form is an important document for employers. It summarizes the total earnings, Social Security wages, and withholding for all employees.

  • Purpose: The W-3 form is used to transmit W-2 forms to the Social Security Administration (SSA).
  • Filing Deadline: Employers must file the W-3 form by January 31st of the following year.
  • Accuracy: Ensure all information is accurate to avoid penalties or delays in processing.
  • Employer Identification Number (EIN): Include your EIN on the form. This number identifies your business.
  • Signature Requirement: A company official must sign the W-3 form to validate it.
  • Paper vs. Electronic Filing: You can file the W-3 form either on paper or electronically, depending on your preference.
  • Copies: Keep a copy of the W-3 for your records and provide copies to employees if necessary.
  • IRS Resources: Utilize IRS resources for guidance on filling out the form correctly.

Documents used along the form

The IRS W-3 form is a summary of all W-2 forms submitted by an employer. It serves as a transmittal form that consolidates the information reported on individual employee earnings and tax withholdings. Alongside the W-3, several other forms and documents are commonly utilized to ensure accurate reporting and compliance with tax obligations. Below is a list of these related documents.

  • W-2 Form: This form reports an employee's annual wages and the taxes withheld from their paycheck. Each employee receives a W-2 from their employer at the end of the year.
  • W-4 Form: Employees complete this form to inform their employer of their tax withholding preferences. It helps determine how much federal income tax should be withheld from their paychecks.
  • 1099 Form: This form is used to report income received by independent contractors or freelancers. It details earnings that are not classified as wages.
  • Form 941: Employers use this quarterly form to report income taxes, Social Security tax, and Medicare tax withheld from employee wages. It helps the IRS track payroll tax liabilities.
  • Arizona Deed Form: To initiate property transfers, utilize our step-by-step Arizona deed form instructions for accurate and legal documentation.
  • Form 940: This annual form is filed by employers to report and pay federal unemployment tax (FUTA). It is essential for maintaining unemployment insurance coverage.
  • Schedule C: Self-employed individuals use this form to report income and expenses related to their business. It is filed with their personal tax return.
  • Form 1096: This summary form accompanies certain information returns, including W-2s and 1099s, when submitted to the IRS. It provides a summary of the total amounts reported.
  • Form 4852: This form serves as a substitute for the W-2 when an employee does not receive their W-2 from their employer. It allows individuals to report their earnings and taxes withheld.
  • Form SS-4: Businesses use this form to apply for an Employer Identification Number (EIN), which is necessary for reporting taxes and hiring employees.
  • Form 1040: This is the standard individual income tax return form used by taxpayers to report their annual income and calculate their tax liability.

Understanding these forms and documents is crucial for both employers and employees. Proper completion and submission of these forms help ensure compliance with tax regulations and contribute to a smooth tax filing process. Being informed about these related documents can ease the burden of tax season and promote financial well-being.

Dos and Don'ts

When completing the IRS W-3 form, it is essential to follow certain guidelines to ensure accuracy and compliance. Here are some important dos and don'ts:

  • Do ensure that all information matches the corresponding W-2 forms.
  • Do use black ink and clear handwriting or type the information for legibility.
  • Do double-check the total wages and withholding amounts before submission.
  • Do sign and date the form to validate your submission.
  • Don't leave any required fields blank; fill in all necessary information.
  • Don't forget to keep a copy of the W-3 for your records.
  • Don't submit the form without reviewing it for any errors or omissions.

Common mistakes

Filling out the IRS W-3 form can be a straightforward task, but many people stumble along the way. One common mistake is failing to double-check the Employer Identification Number (EIN). This number is crucial for identifying your business. If it’s incorrect, it can lead to significant delays in processing your tax documents.

Another frequent error is not matching the names on the W-3 with those on the Social Security Administration records. Discrepancies can cause confusion and may result in penalties. Always ensure that the names are spelled correctly and correspond with the official documentation.

Many people overlook the importance of reporting accurate wages. The total wages reported on the W-3 must align with the amounts reported on the W-2 forms. If there are discrepancies, it could raise red flags with the IRS, leading to audits or additional inquiries.

Some individuals forget to sign and date the W-3 form. This might seem minor, but an unsigned form is considered invalid. It’s essential to remember that the signature verifies the accuracy of the information provided.

Another mistake is neglecting to include all necessary copies of the W-2 forms when submitting the W-3. The W-3 acts as a summary of the W-2 forms, so omitting any could lead to incomplete submissions, causing further complications.

People often miscalculate the total number of W-2 forms submitted. The W-3 requires an accurate count of all W-2 forms issued. An incorrect count can create confusion and may result in penalties.

Additionally, some individuals fail to keep copies of the W-3 and W-2 forms for their records. It’s vital to maintain these documents for future reference, especially in the event of an audit or if questions arise about the submitted information.

Lastly, many underestimate the importance of submitting the W-3 by the deadline. Late submissions can lead to fines and interest on any taxes owed. Staying organized and aware of deadlines can help avoid these unnecessary costs.

File Characteristics

Fact Name Description
Purpose The IRS W-3 form serves as a summary of all W-2 forms issued by an employer for a tax year.
Filing Requirement Employers must file the W-3 form along with their W-2 forms to report total earnings, Social Security wages, and Medicare wages.
Deadline The W-3 form must be submitted to the IRS by January 31st of the year following the tax year.
Who Files Employers, including businesses and non-profits, are responsible for filing the W-3 form.
Electronic Filing Employers can file the W-3 electronically through the IRS e-file system, which is encouraged for efficiency.
State Requirements Some states require a similar form, such as the New York State Form NYS-45, governed by New York Tax Law.
Corrections If errors are found after submission, employers must file a corrected W-3 form to amend the information.
Penalties Failure to file the W-3 form on time may result in penalties imposed by the IRS.
Information Included The W-3 form includes total wages paid, Social Security and Medicare taxes withheld, and the number of employees.

Form Sample

Attention:

You may file Forms W-2 and W-3 electronically on the SSA’s Employer W-2 Filing Instructions and Information web page, which is also accessible at www.socialsecurity.gov/employer. You can create fill-in versions of Forms W-2 and W-3 for filing with SSA. You may also print out copies for filing with state or local governments, distribution to your employees, and for your records.

The maximum amount of dependent care assistance benefits excludable from income may be increased for 2021. The American Rescue Plan Act of 2021 permits employers to increase the amount of dependent care benefits under their plans that can be excluded from an employee’s income from $5,000 ($2,500 for married filing separately) to up to $10,500 ($5,250 for married filing separately). See section C of Notice 2021-26 in

Internal Revenue Bulletin: 2021-21 | Internal Revenue Service (irs.gov) for more information.

Note: Copy A of this form is provided for informational purposes only. Copy A appears in red, similar to the official IRS form. The official printed version of this IRS form is scannable, but the online version of it, printed from this website, is not. Do not print and file Copy A downloaded from this website with the SSA; a penalty may be imposed for filing forms that can’t be scanned. See the penalties section in the current General Instructions for Forms W-2 and W-3, available at www.irs.gov/w2, for more information.

Please note that Copy B and other copies of this form, which appear in black, may be downloaded, filled in, and printed and used to satisfy the requirement to provide the information to the recipient.

To order official IRS information returns such as Forms W-2 and W-3, which include a scannable Copy A for filing, go to IRS’ Online Ordering for Information Returns and Employer Returns page, or visit www.irs.gov/orderforms and click on Employer and Information returns. We’ll mail you the scannable forms and any other products you order.

See IRS Publications 1141, 1167, and 1179 for more information about printing these tax forms.

DO NOT STAPLE

33333

b

Kind of Payer

(Check one)

a Control number

 

 

For Official Use Only

 

 

 

 

 

OMB No. 1545-0008

 

941

Military

943

 

944

 

 

 

 

 

Kind

 

 

Hshld.

Medicare

of

 

CT-1

Employer

 

emp.

govt. emp.

 

 

 

 

 

(Check one)

None apply

501c non-govt.

Third-party

 

 

 

 

 

 

 

 

sick pay

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Check if

State/local

State/local 501c Federal govt.

non-501c

applicable)

 

 

 

 

 

 

 

 

 

 

 

 

c Total number of Forms W-2

 

d Establishment number

1 Wages, tips, other compensation

2 Federal income tax withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

e Employer identification number (EIN)

3 Social security wages

4 Social security tax withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

 

f Employer’s name

 

5

Medicare wages and tips

6 Medicare tax withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

Social security tips

8 Allocated tips

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

10 Dependent care benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11 Nonqualified plans

12a Deferred compensation

 

 

g Employer’s address and ZIP code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

h Other EIN used this year

 

13 For third-party sick pay use only

12b

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15 State

Employer’s state ID number

14 Income tax withheld by payer of third-party sick pay

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16 State wages, tips, etc.

 

17 State income tax

18 Local wages, tips, etc.

19 Local income tax

 

 

 

 

 

 

 

 

 

 

 

 

Employer’s contact person

 

 

Employer’s telephone number

For Official Use Only

 

 

 

 

 

 

 

 

 

 

 

 

Employer’s fax number

 

 

Employer’s email address

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under penalties of perjury, I declare that I have examined this return and accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete.

Signature

Title

 

Date

Form W-3 Transmittal of Wage and Tax Statements

2022

Department of the Treasury

Internal Revenue Service

Send this entire page with the entire Copy A page of Form(s) W-2 to the Social Security Administration (SSA). Photocopies are not acceptable. Do not send Form W-3 if you filed electronically with the SSA.

Do not send any payment (cash, checks, money orders, etc.) with Forms W-2 and W-3.

Reminder

Separate instructions. See the 2022 General Instructions for Forms

W-2 and W-3 for information on completing this form. Do not file Form

W-3 for Form(s) W-2 that were submitted electronically to the SSA.

Purpose of Form

Complete a Form W-3 transmittal only when filing paper Copy A of Form(s) W-2, Wage and Tax Statement. Don’t file Form W-3 alone. All paper forms must comply with IRS standards and be machine readable. Photocopies are not acceptable. Use a Form W-3 even if only one paper Form W-2 is being filed. Make sure both the Form W-3 and Form(s) W-2 show the correct tax year and employer identification number (EIN). Make a copy of this form and keep it with Copy D (For Employer) of Form(s) W-2 for your records. The IRS recommends retaining copies of these forms for 4 years.

E-Filing

The SSA strongly suggests employers report Form W-3 and Forms W-2 Copy A electronically instead of on paper. 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).

W-2 Online fill-in forms or file uploads will be on time if submitted by January 31, 2023. For more information, go to www.SSA.gov/bso. First- time filers, select “Register”; returning filers, select “Log In.”

When To File Paper Forms

Mail Form W-3 with Copy A of Form(s) W-2 by January 31, 2023.

Where To File Paper Forms

Send this entire page with the entire Copy A page of Form(s) W-2 to:

Social Security Administration

Direct Operations Center

Wilkes-Barre, PA 18769-0001

Note: If you use “Certified Mail” to file, change the ZIP code to “18769-0002.” If you use an IRS-approved private delivery service, add “ATTN: W-2 Process, 1150 E. Mountain Dr.” to the address and change the ZIP code to “18702-7997.” See Pub. 15 (Circular E), Employer’s Tax Guide, for a list of IRS-approved private delivery services.

For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 10159Y