What is Form W-3? Transmittal of Wage and Tax Statements Explained
June 24, 2024
Like Form W-2, Form W-3 is an important tax document for employers to know. Explore how to complete one and how the two forms work together.
- Reviewed by Paylocity's Compliance & Government Relations Team
What is Form W-3?
Form W-3 (a.k.a. the Transmittal of Wage and Tax Statements) is an Internal Revenue Service (IRS) tax form used by employers to summarize to the Social Security Administration (SSA) a tax year's combined total wages, taxable wages, and withholding amounts for all employees.
The form is a supplement for Form W-2 and must be used by any organization that submits more than a single W-2 form for a tax year. Included in the information it reports is:
- Total wages, tips, and other compensation the employer paid its employees, including deferred compensation
- Total portion of the compensation that’s subject to Federal Insurance Contributions Act (FICA) taxes
- Total taxes (including income and any other state-based taxes) withheld from the compensation
Key Takeaways
- Form W-3 is a tax form that accompanies and summarizes all the W-2 form data an employer is filing for a given tax year.
- W-3 forms need to be submitted with their corresponding W-2 forms by January 31, but employers aren’t required to share a copy of Form W-3 with employees.
- Employers can file Form W-3 online after entering data manually or uploading data files from a payroll provider. Mail-in options are also available, but employers must first order the blank form from the IRS.
What’s the Difference Between a W-2 and a W-3?
Aside from their similar names, forms W-3 and W-2 share much of the same information, so it’s unsurprising that employers and employees get them confused.
Simply put, IRS Form W-3 is a cumulative summary of all the individual W-2 forms being submitted. It both confirms the information being reported in the W-2s and verifies all wages and FICA taxes were submitted for the tax year.
Form W-3 Responsibilities for Employers
Any employer who paid an employee $600 or more in wages during the tax year and withheld any of those wages for income or FICA taxes must file a W-2 form — which means they’ll also need to file a W-3 form.
Fortunately, employers don’t have to provide employees with a copy of a W-3 the way they do for a W-2. However, they must still ensure that Form W-3 is filed with the SSA by January 31, unless that date falls on a weekend. In such cases, the due date is the next available business day.
How to Complete a W-3 Form
How to Fill Out W-3 Form
Per IRS instructions, the information in each Form W-3 box must align with the sum totals reported across all corresponding W-2 forms.
Box |
Description |
a |
An optional field for employers filing multiple W-3 forms. Employers can assign a Control Number to each W-3 form for internal organization and record keeping. |
b
|
Kind of Payer: Indicates the type of taxpayer completing the W-3 form based on the type of tax return the payer files.
|
Kind of Employer*: Indicates if the taxpayer completing the W-3 form is a governmental or 501(c) employer.
|
|
c |
Reports the total quantity of W-2 forms being summarized by this W-3 form. Note, don’t include any “VOID” W-2 forms. |
d |
Identifies separate establishments within a single organization. Employers can use separate W-3 forms for each establishment (even if they all have the same Employer Identification Number (EIN)), or a single Form W-3 for all W-2 forms of the same type. |
e |
Identifies the employer’s 9-digit EIN assigned by the IRS. Those without an EIN should instead enter, “Applied For” in this box, and can use Form SS-4 or the IRS application website to apply for an EIN. |
f |
Reports the business or company’s name. |
g |
Reports the business or company’s physical address and ZIP code. |
h |
Lists any prior EINs the organization used (including a prior owner’s EIN) before the current one listed in box e above. |
1 – 11** |
List the cumulative totals from each of the corresponding boxes on all of the W-2 forms being summarized by this W-3 form. For example, an employer summarizing five W-2 forms would use Form W-3’s Box 2 to report the total sum of the five Box 2 amounts from those W-2 forms. |
12a |
Lists the cumulative total from each of the corresponding Box 12s with codes D – H, S, Y, AA, BB, and EE. Totals for Box 12s with codes A – C, J – R, T – W, Z, DD, and FF – II aren’t reported. |
12b |
Intentionally left blank. Don’t enter anything in this box. |
13 |
Only used by third-party sick pay providers or employers reporting third-party sick pay payments to report the total sum of sick pay. |
14 |
Reports the total sum of income tax withheld from employees who received sick pay from a third party. Note, this amount is already included in Box 2 above, but it must also be listed separately in this box. |
15 |
Lists the abbreviation for the state or territory where the organization is located (e.g., WA) and the employer’s state or territory-assigned ID. If the W-2 forms being submitted include information for multiple states or territories, enter “X” for this area and leave the ID space blank. |
16 – 19 |
List the cumulative totals from each of the corresponding boxes on all of the W-2 forms being summarized, even if those corresponding boxes have amounts from different states or localities. |
*Taxpayers should only select one of these boxes unless they’re also reporting third-party sick pay, in which case the “Third-party sick pay” box may also be selected.
**Don’t enter anything in Box 9 as it’s intentionally left blank.
Finally, employers can use the fields below boxes 16 – 18 to list additional contact information (e.g., an email address or fax number) the SSA may use for questions arising during processing.
How to Submit Form W-3
- Online: Employers can register with the SSA’s Business Services Online (BSO) site to complete and submit all W-3 Forms electronically. This is the IRS and SSA’s preferred submission method and is required for any employer submitting 10 or more informational returns (i.e., Form W-2). Note, users should allow at least two weeks for the registration process to finish.
- By Mail: Employers who prefer to mail in printed returns must first order a blank W-3 Form from the IRS’ Order Tax Forms page. Copies downloaded and printed from the agency’s About Form W-3 page won’t be accepted. When ready, mail completed forms to one of the following addresses.
Standard Mail |
Certified Mail |
|
Social Security Administration |
Social Security Administration |
Social Security Administration |
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Via Payroll Provider: A third option employers can choose is to work with a payroll provider to complete and submit the W-3 forms on their behalf. Even if an employer files the final forms themselves, the BSO allows users to upload tax data from a payroll provider, so long as it meets certain format requirements.
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