What Form W-3 (2018) Is For
Employers, businesses, and organizations use IRS Form W-3 (2018) to report employee wages, taxes, and Social Security numbers to the Social Security Administration. This form serves as the official transmittal for all W-2s, ensuring that every employee’s income is verified and accurately recorded for Social Security benefits, Supplemental Security Income, and related retirement programs. Employers can file online or by mail through SSA.gov to meet annual employment reporting requirements under federal law.
The form helps agencies verify wages and benefits for individuals who qualify for Social Security, disability, or old-age pensions. It provides the link between reported income and public benefits, allowing accurate updates to each person’s account. For instructions, contact the SSA through its toll-free number or visit the resources page for free, updated filing information and application guidance.
For a detailed breakdown of filing requirements, eligibility rules, and step-by-step instructions, see our comprehensive Form W-3: Transmittal of Wage and Tax Statements (2018) — A Complete Guide for Employers.
When You’d Use Form W-3 (2018)
Employers, businesses, and organizations must file IRS Form W-3 (2018) with the Social Security Administration to report employee wages and taxes for the year. It’s required when submitting W-2 forms, whether online or on paper. Filing ensures employees receive proper Social Security benefits and Supplemental Security Income based on verified employment data. For questions, employers can contact the SSA through its toll-free number or visit SSA.gov for resources and filing instructions.
Key Rules or Details for 2018
The Social Security Administration required employers filing 250 or more W-2 forms to submit them online, in accordance with federal employment law and IRS regulations. Social Security numbers must appear in full, and all forms must be accurate and signed. Employers should verify EINs, meet SSA deadlines, and use updated instructions found on IRS.gov. Following these requirements helps ensure that wages and taxes are correctly reported and that benefits remain accurate for employees and retirees.
For complete details on wage reporting, withholdings, and unemployment tax filings, see our guide for Payroll & Employment Tax Forms.
Step-by-Step (High Level)
Step 1 – Gather Employee Information
Employers must first complete all employee W-2 forms for the 2018 tax year. Each form should include the employee’s name, Social Security number, address, and accurate wage information. It is essential to verify these details against the company's records before creating the Form W-3 summary.
Step 2 – Calculate Totals
Employers should add up the amounts from all W-2 forms to determine totals for wages, tips, and tax withheld. The totals must be entered accurately on Form W-3. Errors in these fields can cause SSA rejections or delays.
Step 3 – Provide Employer Details
The employer must enter the EIN, business name, address, and type of payer. Employers acting as agents for clients should also include the client's EIN. Accuracy is crucial to prevent processing errors.
Step 4 – Sign and File
Form W-3 must be signed by an authorized representative under penalty of perjury. Service bureaus or payroll providers may sign if they are approved on Form 2678. Employers can file electronically through the SSA’s Business Services Online (BSO) portal or mail paper copies to the SSA.
Step 5 – Retain Records
Employers must retain a copy of Form W-3 and all W-2 forms for a minimum of four years. These records may be requested during audits or investigations by the IRS or SSA.
Common Mistakes and How to Avoid Them
Many Form W-3 filing errors can be avoided with a careful review before submission.
- Filing Form W-3 without W-2 forms: Always attach Copy A of all W-2s when submitting Form W-3; it cannot be filed alone.
- Using unofficial or printed copies: The SSA only accepts official red-ink scannable forms or approved substitute versions; printed copies from non-official sources are rejected.
- Mismatched employer names or EINs: Ensure the employer name and EIN on Form W-3 match those on quarterly or annual tax returns to prevent processing delays.
- Including dollar signs or commas in figures: Enter all amounts in plain numeric format (e.g., 12345.67) without symbols or commas.
- Folding, stapling, or damaging forms: Submit forms flat and unfolded; avoid staples, tape, or folds that can interfere with SSA scanners.
Following official IRS and SSA form instructions ensures smooth processing, reduces rejections, and helps employers avoid unnecessary penalties.
What Happens After You File
Once IRS Form W-3 (2018) is received, the Social Security Administration reviews and verifies all wages, taxes, and Social Security numbers reported by employers. The data updates employee earnings records for programs such as Social Security benefits, retirement, and disability. If errors or disputes occur, agencies will contact the employer or representative to apply corrections. Accurate filing helps individuals qualify for future benefits and ensures compliance with federal law.
FAQs
What is IRS Form W-3 (2018) and who must file it?
IRS Form W-3 (2018) is used by employers to report employee wages and taxes to the Social Security Administration. All businesses and organizations that pay employees subject to employment taxes are required to file this form online or by mail.
How does the Social Security Administration use the information on Form W-3?
The Social Security Administration uses W-3 reports to verify Social Security numbers, wages, and income for individuals. The information ensures employees receive accurate Social Security benefits, pensions, and Supplemental Security Income based on employment records.
What should employers do if they discover errors after filing Form W-3?
Employers must file Form W-3c along with corrected W-2c forms to amend previously submitted information. This correction process helps verify wages, update Social Security benefits, and meet the reporting requirements under federal law and SSA guidelines.
Can an employer file Form W-3 online through SSA services?
Yes, employers can access the SSA’s Business Services Online portal to file Form W-3 electronically. This secure system, shown by a locked padlock icon, allows faster processing, reduces errors, and helps employers meet required tax deadlines.
What happens if employers fail to file Form W-3 on time?
Late filing may result in IRS penalties and delays in posting employee Social Security records. Employers should apply for an extension before the due date or contact the SSA through its toll-free number for assistance.
How does Form W-3 affect Social Security benefits and retirement programs?
Form W-3 ensures that wages, tips, and taxes are reported accurately, allowing employees to qualify for Social Security benefits, disability coverage, and retirement programs. Accurate filing supports SSA and IRS recordkeeping and future claims.
Where can businesses find official instructions and resources for Form W-3?
Employers can download Form W-3 and instructions directly from IRS.gov or SSA.gov. Both agencies offer free resources, public contact information, and links for updates, enabling businesses to remain compliant with applicable employment and wage reporting laws.
