Transmittal of Wage and Tax Statements (Form W-3) –
2019 Tax Year Checklist
Form W-3 serves as the transmittal document that accompanies Copy A of Forms W-2 when employers submit wage and tax statements to the Social Security Administration. The 2019 version incorporates updated reporting requirements and clarified instructions for Medicare tax adjustments affecting high-income earners.
Step-by-Step Checklist for Completing Form W-3 (2019
Tax Year)
Step 1: Verify Form W-3 Header Information and Tax Year Designation
Enter “2019” in the designated tax year field and confirm your employer identification number
(EIN) matches IRS records exactly. Include your complete legal business name and current mailing address to ensure SSA matching and avoid processing delays.
Step 2: Report Total Wages, Tips, and Other Compensation
Box 1 requires the total wages subject to federal income tax withholding across all W-2 copies issued during the calendar year. Verify this sum matches your payroll records before transmitting the form to the Social Security Administration.
Step 3: Complete Federal Income Tax Withholding
Box 2 shows total federal income tax withheld from employee wages reported on all Forms W-2.
The 2019 instructions emphasize reconciling withheld amounts against the four quarterly Forms
941 filed throughout the year. Form 941-X serves only to correct errors on previously filed Forms
941. Include backup withholding amounts in this total when applicable to your organization.
Step 4: Report Social Security Wages and Tax
The 2019 wage base limit for Social Security is $132,900, representing an increase from
$128,400 in 2018. Enter total Social Security wages in Box 3 and the corresponding Social
Security tax withheld in Box 4. In 2019, the maximum Social Security tax per employee is
$8,239.80. Report the wages paid to all employees, regardless of whether the amounts are less than the annual threshold.
Step 5: Complete Medicare Wages and Tax
Report all wages subject to Medicare tax in Box 5, including those exceeding the Social Security wage base. Enter total Medicare tax withheld in Box 6 for all employees. The Additional
Medicare Tax of 0.9% applies only to employees, with no employer portion, and employers must withhold it on wages exceeding $200,000 in a calendar year.
Step 6: Report Tips Reported by Employees
Box 7 includes only tips that employees reported to you in writing during 2019. If your establishment follows tip allocation rules, allocated tips under Internal Revenue Code Section
6053(c) regulations require separate reporting.
Step 7: Document Dependent Care Benefits
Report total dependent care benefits provided or elective deferrals made under Section 129 cafeteria plans in Box 10. The 2019 instructions maintain the $5,000 annual exclusion limit for eligible dependent care benefits.
Separately identify excess amounts that must be included in taxable income, and attach documentation showing individual employee deferrals for your records.
Step 8: Report Employer-Sponsored Health Insurance
Complete Box 12 entries showing wages deferred under employer health insurance plans, health savings accounts, and flexible spending arrangements. The 2019 instructions require separate Code DD reporting for health insurance coverage information when applicable.
HSA employer contributions are reported using Code W, and you should cross-reference individual Forms W-2 to ensure consistency across all employee records.
Step 9: Reconcile Box 13 Checkboxes Against Employee Population
Check Box 13 only when circumstances apply to specific employees in your organization.
Statutory employee status determines whether the self-employment tax applies to wages reported.
Mark the retirement plan checkbox if your organization sponsors a qualified plan, even if the plan operates in frozen status or no longer accepts new contributions, and note that third-party sick pay reporting requires SSA notification for proper benefit calculations.
Step 10: Report Nonqualified Deferred Compensation
Section 409A nonqualified deferred compensation plans allow optional reporting of current year deferrals in Box 12 using Code Y. Income from plans that fail to satisfy Section 409A requirements must be reported in Box 12 using Code Z.
This amount also appears in Box 1 as part of total taxable wages, and distributions must comply with Section 409A timing rules to avoid adverse tax consequences.
Step 11: Attach All Corresponding Forms W-2 and Supporting
Documentation
Bundle all Copy A Forms W-2 with the Form W-3 transmittal for submission to the Social
Security Administration. Number the forms sequentially on the left margin for tracking purposes.
The 2019 instructions permit filing Forms W-2 either alphabetically by employee last name or numerically by employee Social Security number, and you should not staple or tape Form W-3 to the Forms W-2 because they undergo machine reading.
- Form 940 reports annual Federal Unemployment Tax Act obligations for the calendar
- Form W-3SS transmits wage reports for American Samoa, Guam, the Commonwealth of
- Form 8809 requests extensions of time to file information returns when extraordinary
- Deferrals may be reported in Box 12 using Code Y on an optional basis.
- Income from failed 409A plans must be reported in Box 12 using Code Z.
- Guidance addresses distribution timing rules and corrective action procedures for plan
- Both employee deferrals and employer contributions apply to these reporting
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 12: Sign and Date the Form W-3 Transmittal
Sign Form W-3 in the designated section with the signature of an officer, manager, or authorized representative. Include the signer’s title, telephone number, and email address when available for SSA contact purposes.
No notarization or witness signature is required for this form. Date the form with the actual signature date rather than the filing deadline.
Understanding Employment Taxes and Reporting
Requirements
Employment taxes reported on Form W-3 include Social Security tax, Medicare tax, and federal income tax withholding. Employers must calculate these amounts accurately to ensure proper
reporting on tax returns filed with the Internal Revenue Service. Each employee’s Form W-4 determines the amount of federal income tax withholding throughout the year.
Electronic Filing Options and IRS Forms
Electronic filing through the SSA’s Business Services Online platform streamlines the submission process for employers filing multiple Forms W-2. The system accepts IRS forms electronically and generates confirmation receipts upon successful submission. Employers filing
250 or more Forms W-2 must file electronically rather than submit paper forms.
Additional IRS Forms Related to Wage Reporting
Employers must coordinate Form W-3 filing with other IRS forms required throughout the tax year: year. the Northern Mariana Islands, and the U.S. Virgin Islands. circumstances prevent timely filing.
Key 2019 Changes and Requirements
The 2019 instructions clarify reporting requirements for wages subject to Additional Medicare
Tax provisions. High-income employee compensation over $200,000 triggers employer withholding obligations at the 0.9% rate.
This tax applies only to employees with no employer portion required, and proper calculation of income taxes ensures accurate reporting on both Forms W-2 and employee income tax returns.
In 2019, the Social Security wage base increased to $132,900, a rise from $128,400 in 2018.
For both employees and employers, the Medicare tax rate remained at 1.45%.
The instructions emphasize verification against SSA wage records for all employees reaching either threshold. Employers must maintain accurate employer identification number records across all tax returns and wage reporting documents.
Section 409A nonqualified deferred compensation reporting received expanded guidance in the
2019 instructions: failures. requirements.
HSA employer contributions are reported in Box 12 using Code W. Form 8889 is filed by employees who have HSA contributions or distributions. The 2019 version maintained prior-year pension plan indication rules in Box 13 but clarified that employers must mark the retirement plan checkbox even if the plan operates in frozen status.
Forms W-2c correct errors on previously filed Forms W-2 and must be filed with Form W-3c rather than Form W-3. Do not attach Forms W-2c to Form W-3 or to each other due to machine-reading requirements. Employer-provided adoption assistance benefits reported in Box
12 must align with employee Forms 8839, with any discrepancies flagged for reconciliation before filing.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
