Form W-3 Transmittal of Wage and Tax Statements (2017): A Complete Guide
What the Form Is For
Form W-3, titled "Transmittal of Wage and Tax Statements," is essentially the cover sheet that employers use when submitting paper copies of their employees' W-2 forms to the Social Security Administration (SSA). Think of it as the summary page that accompanies all your W-2 forms—it totals up all the wages, taxes withheld, and other compensation information from every employee's W-2 and presents it in one consolidated document.
The W-3 serves several important purposes. First, it acts as a transmittal document, telling the SSA how many W-2 forms you're sending and providing key information about your business. Second, it provides totals that the SSA can use to verify your submitted W-2s are complete and accurate. Third, it helps the SSA route your wage reports correctly by identifying what type of employer you are (for example, whether you file Form 941 quarterly or Form 944 annually).
You must file Form W-3 anytime you're submitting paper Copy A of Forms W-2 to the SSA. Even if you have only one employee, you still need to complete and submit Form W-3 along with that single W-2. However, if you file your W-2s electronically through the SSA's Business Services Online system, you don't file a separate W-3—the electronic system generates the transmittal information automatically IRS.gov.
When You’d Use Form W-3 (Late/Amended Filing)
Standard Filing Timeline
For the 2017 tax year, the standard filing deadline for both Form W-3 and Forms W-2 with the SSA was January 31, 2018. This represents an important change from previous years—there's now a unified deadline whether you file on paper or electronically, and it's the same date by which you must provide W-2s to your employees.
Late Filing
If you missed the January 31 deadline, you could request an extension by submitting Form 8809 (Application for Extension of Time to File Information Returns). However, for 2017 onward, extensions are no longer automatic. You must provide a detailed explanation of why you need additional time, and the IRS will only grant extensions in extraordinary circumstances or catastrophe situations, such as natural disasters or fires that destroyed your records. If approved, you'll receive only one 30-day extension—no additional extensions are available. Importantly, even if you receive an extension to file with the SSA, you still must furnish W-2s to employees by January 31.
Amended Filing
If you discover errors after filing your original W-3 and W-2s, you don't file another W-3. Instead, you use Form W-3c ("c" for corrected) along with corrected W-2c forms to fix the mistakes. You can file corrections for the current year or prior years. If you only need to correct certain employees' information, you only submit W-2c forms for those specific employees along with a W-3c that reflects the corrections being made IRS.gov.
Key Rules for 2017
Filing Threshold
You must file Form W-3 if you have one or more employees to whom you paid wages (including noncash payments) during 2017, and you meet any of these conditions: you withheld any income, Social Security, or Medicare tax; you would have had to withhold income tax if the employee claimed no more than one allowance; or you paid $600 or more in wages even without withholding any taxes.
Electronic Filing Requirement
If you're filing 250 or more Forms W-2, you must file electronically through the SSA's system. Paper filing is not permitted once you reach this threshold. You can request a waiver from this requirement by filing Form 8508 at least 45 days before the due date, but waivers are granted only in limited circumstances.
No More Downloads
For 2017, the IRS and SSA strictly prohibited downloading Copy A of Forms W-2 or Form W-3 from IRS.gov and then printing them for submission. The SSA accepts only official red-ink forms, approved substitutes from payroll providers, or electronic submissions. Downloaded and printed forms won't scan properly in SSA's machines.
Penalties Increased
Due to inflation adjustments, penalties for late filing increased for returns required to be filed after December 31, 2017. This made timely and accurate filing even more critical.
Unified State Reporting
The 2017 form allowed reporting of state and local tax information (boxes 15-19), which meant employers could use the same W-3 for both federal and state wage reporting where applicable IRS.gov.
Step-by-Step Filing Process (High Level)
Step 1: Complete All Employee W-2 Forms
Before you can fill out Form W-3, you need to have completed all your employees' W-2 forms. The W-3 will contain totals from these individual forms, so they must be finalized first.
Step 2: Calculate Totals
Add up each box from all your W-2 forms. For example, total all wages from box 1 of every W-2, total all federal income tax withheld from box 2, and so on. These totals will be entered in the corresponding numbered boxes on Form W-3.
Step 3: Fill Out Employer Information
Complete the identifying information about your business: your Employer Identification Number (EIN), business name, and address. Make sure this information exactly matches what you use on your Form 941, 943, 944, or CT-1 employment tax returns.
Step 4: Check Appropriate Boxes
Indicate what kind of payer you are (check box "941" if you file quarterly Form 941, "944" if you file annual Form 944, etc.) and what kind of employer you are if applicable (such as state/local government, 501(c) non-profit, or federal government). These checkboxes help the SSA route your information correctly.
Step 5: Enter Contact Information
Provide the name, telephone number, fax number, and email address of a contact person at your organization who can answer questions about the W-3 and W-2s.
Step 6: Sign and Date
An authorized person must sign Form W-3 under penalties of perjury, certifying that the information is true, correct, and complete. Include their title and the date signed.
Step 7: Mail Forms Together
Send the completed Form W-3 along with Copy A of all Forms W-2 to the Social Security Administration in Wilkes-Barre, PA. Do not staple, fold, or tape the forms together—they're machine-scanned and staples or folds interfere with processing. Mail them flat IRS.gov.
Common Mistakes and How to Avoid Them
Mistake #1: Mismatched EINs
One of the most common errors is having an EIN on Form W-3 that doesn't match the EIN on your quarterly or annual employment tax returns (Forms 941, 943, 944, or CT-1). This causes processing delays and can trigger IRS inquiries. Solution: Always double-check that you're using the same EIN across all your employment tax documents.
Mistake #2: Math Errors in Totals
Many employers make addition errors when totaling up the amounts from individual W-2 forms, particularly when dealing with large numbers of employees. These discrepancies are caught during SSA processing. Solution: Use payroll software or spreadsheets to calculate totals automatically, and always verify your math before submitting.
Mistake #3: Wrong or Missing Kind of Payer Box
Failing to check the appropriate "Kind of Payer" box (941, 943, 944, etc.) or checking the wrong box causes confusion about which employment tax return your W-2s should reconcile with. Solution: Check your previous year's employment tax return to confirm which form you file, and mark the corresponding box on W-3.
Mistake #4: Stapling or Folding Forms
Many employers staple the W-3 to their stack of W-2s or fold the forms to fit in standard envelopes. This damages the forms and prevents the SSA's machines from reading them properly. Solution: Mail forms flat in a large envelope without staples, paper clips, or folds.
Mistake #5: Including Payments with Forms
Some employers mistakenly send tax payments along with their W-2 and W-3 submissions to the SSA. However, the SSA only processes wage reports—tax payments must go to the IRS separately. Solution: Never send cash, checks, or money orders with W-3 and W-2 forms. Make tax deposits separately through the Electronic Federal Tax Payment System (EFTPS) or mail payments to the IRS, not the SSA.
Mistake #6: Downloading and Printing Copy A
For 2017, the IRS explicitly warned against downloading Form W-3 or W-2 Copy A from IRS.gov and printing them on regular printers. These forms use special red ink and paper specifications that regular printers cannot reproduce. Solution: Order official forms from the IRS or use approved payroll service substitute forms. Better yet, file electronically IRS.gov.
What Happens After You File
SSA Processing
The SSA scans your forms using optical character recognition technology. This is why proper formatting, clear printing, and undamaged forms are so critical. The SSA enters the wage and tax information into their databases, which are used to track employees' lifetime earnings for Social Security and Medicare benefit calculations.
Verification and Error Checking
The SSA performs automated checks to verify that the totals on your W-3 match the sum of all your individual W-2 forms. They also check for common errors, such as Social Security wages exceeding Medicare wages (which shouldn't happen unless certain pre-tax deductions apply) or having Social Security taxes reported with zero Social Security wages. If problems are detected, the SSA will send you a notice by mail or email asking you to submit corrected forms.
Information Sharing with IRS
The SSA shares the wage and tax information with the Internal Revenue Service. The IRS uses this data to verify that the amounts you reported on your quarterly or annual employment tax returns (Forms 941, 943, 944, or CT-1) match the amounts shown on your W-2s. If discrepancies exist, you may receive a notice from the IRS asking for an explanation or correction.
Employee Benefits Records
The wage information is posted to individual employees' Social Security earnings records. Years later, when these employees apply for Social Security retirement, disability, or Medicare benefits, the SSA will use the earnings you reported on their W-2s to calculate their benefit amounts. This is why accuracy is crucial—errors can affect your employees' future benefits.
State and Local Processing
If you completed boxes 15-19 on Forms W-2 and W-3 with state and local tax information, the SSA may share relevant data with state and local tax agencies, depending on existing agreements. However, many states require separate filing of wage information, so check your state's requirements IRS.gov.
FAQs
Q1: Do I need to file Form W-3 if I only have one employee?
Yes. Even if you have just one employee, you must file Form W-3 along with that employee's W-2 Copy A. There is no minimum number of employees that exempts you from the W-3 requirement. The only exception is if you file electronically—electronic submissions don't use a separate W-3 form.
Q2: Can I email or fax Form W-3 to the Social Security Administration?
No. Paper Form W-3 must be mailed to the SSA address in Wilkes-Barre, Pennsylvania. Email and fax are not acceptable submission methods. However, you can file electronically through the SSA's Business Services Online website, which is actually the preferred method and saves time for both you and the SSA.
Q3: What happens if I miss the January 31 deadline?
You may face penalties for late filing. For 2017 returns, penalties ranged from $50 to $270 per form depending on how late you file, with higher penalties for intentional disregard. Small businesses with average annual gross receipts of $5 million or less face lower maximum penalties. File as soon as possible to minimize penalties, and consider requesting an extension if you have extraordinary circumstances, though extensions are rarely granted.
Q4: I made a mistake on my W-3 after filing. How do I fix it?
If you discover errors after filing, use Form W-3c (Corrected Wage and Tax Statements transmittal) along with W-2c forms (corrected W-2s) for affected employees. You can file corrections at any time after discovering the error. Form W-3c requires you to show both the incorrect amounts previously reported and the correct amounts, so the SSA can make proper adjustments.
Q5: Do I file Form W-3 with my corporate tax return or employment tax returns?
No. Form W-3 is filed separately with the Social Security Administration, not with the IRS as part of your tax returns. You file employment tax returns (Forms 941, 943, 944, or CT-1) separately with the IRS, and you file your business income tax return (Form 1120, 1120-S, 1065, or Schedule C) separately as well. These are three different filing obligations to three different addresses.
Q6: Can a third-party payroll service file Form W-3 on my behalf?
Yes. Payroll services, reporting agents, and other third-party providers can file Form W-3 for you. They can sign the form and submit it electronically or on paper. However, as the employer, you remain ultimately responsible for ensuring accurate and timely filing. If your payroll service makes errors or files late, you can still face penalties, so choose your provider carefully.
Q7: I file Forms 941 quarterly. Should I also file Form W-3 quarterly?
No. Form W-3 is an annual form filed once per year, covering the entire calendar year's wages and taxes. It's filed by January 31 of the following year. While you file Form 941 four times per year (for each quarter), you only file Form W-3 once annually as a summary of all four quarters combined. The totals on your W-3 should match the sum of all four quarters from your Forms 941 IRS.gov.
For complete instructions and the most current information, visit IRS.gov/w2 or download the 2017 General Instructions for Forms W-2 and W-3 at IRS.gov.
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