W3 Form

Search topics
glossary image

W3 Form

What is a W3 form?

All American employers, no matter how big or small, have to file some documents during tax season, depending on the size and nature of their company. They include the W-2 and W-3 varieties, as well as several others. Businesses must gather payroll data to submit to the Internal Revenue Service and the Social Security Administration throughout tax season.

The W-3 form, commonly known as the "Transmittal of Wage and Tax Statements," is the summary report sent to the Social Security Administration. It summarizes all employees’ pay from the last year and their contributions to Social Security and the Internal Revenue Service. Every January, this summary document is distributed alongside the connected W-2 forms.

The Social Security Administration uses the W-3 form to verify that all wages and Federal Insurance Contributions Act (FICA) taxes (for the year) have been reported. By January 31st of each year, which is also the deadline for sending employees photocopies of their Form W-2, companies are responsible for filing the W3.

In addition, companies that are required to provide W2 forms for staff members have to submit a W3 form with the Social Security Administration. They must file Forms W2 and W3 if they:

  • Withhold earnings, deduct for medical care payments and social welfare taxes from the employee's compensation.
  • Paying salary (even without income deductions) and social welfare or medical care taxes totaling at least $6,000.

Since the total amounts are shown on the Form W2 for every employee, employers who issue only one Form W2 do not require a separate form to total the amounts.

What information is included in the W3 form?

Form W3 reports the following data

  • Business details, including a valid address, employment identification number (EIN), and other contact details
  • Total stipend (wage, tips, commission, and other remuneration) paid to workers over the previous year
  • Complete taxable pay
  • Total federal as well as state income tax
  • Total social welfare tax
  • Total medical care

When to fill W3 form?

To submit a W3 form for the previous year's reporting, company owners and tax preparers must enclose a copy of every employee's W2 by the end of January. If the due date is not complied with, it may result in a penalty.

Through the Social Security web portal, employers can submit W2 and W3. The Internal Revenue Service website sells copies of the forms for manual filers. Submissions by postal mail must be received by the last day of January. The IRS requires W2 forms filed by firms employing 250 or more entries to be sent in via the Internet unless a written waiver is acquired. The IRS encourages the use of technology and offers several resources to help companies file electronically a quick and easy source.

Related: W4 Form, W5 Form.