What is a W-3 form?

Form W-3 is a tax form that employers use to report combined employee income to the Internal Revenue Service (IRS) and the Social Security Administration. Employers who send more than one Form W-2 to employees must complete and send this form to summarize their total wage payments and amounts withheld. For employees and independent contractors, it's important to make sure the income reported by your employer matches your  pay stub  , invoice, or any other financial records you maintain.

Employers who send a single Form W-2 do not need a separate form to reconcile the total amounts, because they appear on their single employee's Form W-2.

Who needs to fill out the W-3 form?

Every employer required to file a Form W-2 must file a Form W-3. This means that most employers in the U.S. require a Form W-2 after an employee is paid more than $600 in wages in a given year, regardless of whether the employer withheld income or taxes from the employee's wages.

Why does the IRS expect employers to file W-3 forms?

Form W-3 provides a benchmark for the IRS to compare the figures on each employee's W-2 form to the official totals reported by his or her employer.

What Information Must Be Included on a W-3 Form?

• Details about your business, including employer identification number (EIN), legal address, and other contact information
• Total compensation paid to employees during the previous year (salary, tips, commissions, and other compensation)
• Total taxable wages for Social Security and Medicare
• Total federal and state income taxes withheld
• Total Social Security Tax Withheld
• Total Medicare tax withheld

When do employers submit W-3 forms?

Employers are required to submit Form W-3 by January 31 of each year – this is a shared deadline with sending copies of Form W-2 to employees.

How do employers submit W-3 forms?

The preferred method is to  submit pay files through the Business Services Online (or BSO) portal from your payroll software  . The IRS and Social Security Administration are eliminating their paper copy method with strict rules on who is eligible to file by mail.