Form W-3 2016 Tax Year Checklist
Purpose and Filing Requirements
Form W-3 transmits Copy A of paper Forms W-2 to the Social Security Administration for wage and tax reporting. The 2016 tax year requires filing by January 31, 2017, for both paper and electronic submissions.
Employers must use machine-readable originals only because the SSA does not accept photocopies. All submitted documents must display matching EIN and tax year designations across forms.
Filing Deadline Changes for 2016
The due date for filing 2016 Forms W-2 and W-3 with the SSA changed to January 31, 2017, whether you file using paper forms or electronically. This represents a significant change from prior years when electronic filers received an automatic extension beyond the paper filing deadline.
Extensions of time to file are no longer automatic for filings due on or after January 1, 2017. The IRS will grant extensions only in extraordinary circumstances or catastrophe, such as natural disasters or fires destroying books and records needed for filing.
Employer Identification and Tax Year Verification
Step 1: EIN Matching
Verify your employer identification number matches on both Form W-3 and all attached Copy A Forms W-2. Mismatched EINs delay SSA processing and may trigger correspondence requests.
The payer's name and EIN on Forms W-2 and W-3 must match those used on Form 941, Form 943, Form 944, Form CT-1, or Schedule H filed by or for the payer. Enter your nine-digit EIN in box e of Form W-3 exactly as it appears on your employment tax returns.
Step 2: Tax Year Confirmation
Confirm tax year "2016" appears in the header of Form W-3 and each Copy A Form W-2. The SSA will reject forms marked with prior or subsequent years.
Count the total number of Forms W-2 being transmitted and enter that count in box c of Form W-3. This count must match the actual number of Copy A pages included in your submission.
Payer and Employer Classification
Select the appropriate "Kind of Payer" checkbox in box b based on your employer classification. Available options include 941 for quarterly filers, 943 for agricultural employers, 944 for annual filers, CT-1 for railroad employers, or Military for armed forces employers.
You may mark only one box per Form W-3 submitted for 2016. Select applicable "Kind of Employer" checkboxes to reflect your 2016 business structure, including options for None apply, 501(c) non-government organizations, State/local non-501(c) entities, State/local 501(c) entities, Federal government, or Third-party sick pay indicator.
Wage and Tax Totals Calculation
Aggregate all wages, tax withholding, Social Security, and Medicare amounts from individual Forms W-2 and enter totals in corresponding boxes 1–6 on Form W-3. Verify your arithmetic before submission to avoid processing delays.
Complete boxes 15–19 if applicable for 2016 by entering the state employer ID number, state wages and tips, state income tax withheld, local wages and tips, and local income tax withheld based on applicable state and local filing requirements. These boxes allow proper reporting to state and local tax authorities when required.
Third-Party Sick Pay Reporting
Check the "Third-party sick pay" checkbox in box b if you are a third-party sick pay payer or are reporting sick pay payments made by a third party. File a single Form W-3 for both regular and "Third-party sick pay" Forms W-2 combined.
Leave box 13 blank on Form W-3 even though it is labeled for third-party sick pay use.
Complete box 14 only if you are the employer and have employees who had federal income tax withheld on third-party payments of sick pay, showing the total income tax withheld by third-party payers on payments to all of your employees.
Signature and Authorization
Sign Form W-3 under penalties of perjury, including your signature, title, and date. The 2016 instructions require the authorized employer representative or officer to certify accuracy and completeness.
A transmitter or sender may sign Form W-3 for the employer only if authorized by a valid agency agreement under state law and writes "For (name of payer)" next to the signature on paper forms. Use of a reporting agent or third-party payroll service provider does not relieve an employer of responsibility to ensure Forms W-2 are furnished to employees and filed with the SSA correctly and on time.
Machine-Readable Form Standards
Ensure the form meets machine-readable requirements by using original IRS-approved paper stock with original ink. Faded or light copies cause processing rejections during the 2016 processing cycles.
Maintain proper alignment, meeting SSA specifications for automated scanning equipment. Do not download Copy A of Forms W-2 or W-3 from IRS.gov and file them with the SSA because the SSA accepts only e-filed reports and the official red-ink versions or approved substitute versions of these forms.
Mailing Instructions and Address Requirements
Standard Mail Procedure:
- Mail the completed Form W-3 with the entire Copy A page of all Forms W-2 to the Social Security Administration, Data Operations Center, Wilkes-Barre, PA 18769-0001.
- Ensure your submission is postmarked by January 31, 2017, to avoid penalties.
- Change the ZIP code to 18769-0002 if you use Certified Mail for tracking purposes.
- Add "ATTN: W-2 Process, 1150 E. Mountain Dr." to the address and change the ZIP code to 18702-7997 if you use an IRS-approved private delivery service.
Document Preparation and Recordkeeping
Prepare and file Forms W-2 either alphabetically by employees' last names or numerically by employees' social security numbers. Do not staple or tape Form W-3 to the related Forms W-2 or Forms W-2 to each other because these forms undergo machine reading.
Do not fold Forms W-2 and W-3 when preparing them for mailing. Send the forms to the SSA in a flat mailing to prevent damage during automated processing.
Retention Requirements and Payment Restrictions
Retain a photocopy of completed Form W-3 with Copy D (For Employer) of all Forms W-2 in employer records for a minimum of four years from the 2016 filing date. Keep these records available for IRS examination or SSA verification requests.
Do not mail Form W-3 alone because it must accompany Copy A of at least one Form W-2. Do not enclose any cash, checks, or money orders with the submission because the SSA accepts wage reports only and does not process tax payments.
Establishment Number Usage
Box d on Form W-3 allows you to identify separate establishments in your business if needed. You may use this optional box to distinguish between different business locations or divisions.
You may file a separate Form W-3 with Forms W-2 for each establishment, even if they all have the same EIN. You may also use a single Form W-3 for all Forms W-2 of the same type, regardless of establishment.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
