If your state employs officially hired workers, you need to know not only how to use the W-2 but also how to complete the tax form W3. Fortunately, they are pretty similar, so you will quickly figure out what’s what. For detailed information about the W-3 features, read the material below.
What Is a W-3 Form?
W-3 tax form is a simple one-page document that is essentially a summary of the information from all the W-2s you have issued. These two documents always go side by side; the first cannot be used without the second. When filling out the form W-3, you use data on the paid salaries of employees from the W-2s. Unlike many other official papers, this document is not sent directly to the IRS but to the Social Security Administration.
Who Files Form W-3?
Every employer that hires W-2 employees on their staff (that is, officially, not as independent contractors) must use the W-3 Form. Even if there is only one W-2 worker in your state, you will need to submit a W-3 cover sheet to the relevant authorities. This document is provided exclusively to SSA and is not sent to employees, unlike W-2s, which must be provided to all employees on time. Since the W-3 represents the total wages paid, all W-2s for the reporting period must be attached. Of course, copies of all the mentioned documents should also be kept by employers.
Difference Between W2 and W3
It is not difficult to understand the difference between these documents. The first blank, W-2, provides each worker with the following information:
- Paid salaries;
- Federal taxes;
- Social security retention;
- Government taxes, etc.
That is, each employee, with the help of W-2, can find out the summary regarding themselves. The second blank, W-3, is a summary of the information from all the W-2s that you have given to your employees. This document does not detail how much and to whom you paid, but only the total amounts paid during the tax period. It is not distributed to employees but only to SSA.
How to Fill Out W 3 Form
As you probably already understood, to complete the W-3, you will need a W-2 you created for each of your employees. Although it is a simple document, filling it out requires you to be careful. When filling out the form using Pdfliner.com, you smoothly move from section to section, and hints will not let you skip a single line. Follow our Form W3 instructions to get things right:
- Specify the control number on the first line. It is an optional box that makes accounting documents more convenient. You can skip it.
- Select your type of payer and employer from the suggested options.
- Enter the exact number of W-2s issued.
- Specify the establishment number. It might be necessary if you want to separate documents by location, branch, or department.
- Enter information about yourself as an employer: the EIN, name, and exact address. If you have used a different EIN this year, please note it on the appropriate line.
- Now proceed to fill in the boxes relating directly to salaries and taxes. Provide the following total information:
- Wages, tips, compensations, etc.;
- Federal income taxes;
- Social security wages and taxes;
- Medical wages and taxes;
- Social security and allocated tips;
- Dependent care benefits;
- Nonqualified plans and deferred compensations;
- Local wages and taxes.
- Enter your contact details (telephone, email, and fax number), and if necessary, indicate the contact person.
- Put your signature and the date of the document completion.
Make sure the payroll and tax withholding information matches the W-2s, as well as your quarterly Forms 941 and annual Form 943 and Form 944. If you notice errors after submitting your documents, use W-3c (or W-2c ) to correct them.
When and How to File Tax Form W3
The deadline for submitting the W-3 to SSA is January 31st. Like the IRS, the SSA encourages employers to submit all documents electronically. You can use the payroll tax software or the official Business Services Online platform to do it. You can still submit all printed copies via mail: SSA, Direct Operations Center, Wilkes-Barre, PA 18769-0001. However, if you have 250 or more W-2s, you will have to file them online due to the limit.
Bottom Line
The W-3 is an important form used annually by employers with W-2 employees. Since it’s crucial that the information in the documents you issue match, it’s best to use an online service like PDFLiner to avoid mistakes.