What Form W-3 (2024) Is For
IRS Form W-3 (2024) is a transmittal of wage and tax statements that employers submit to the Social Security Administration (SSA). It summarizes employee wages, taxes withheld, and other compensation paid during the tax year, ensuring totals from all Forms W-2 match correctly.
This tax form helps the SSA and Internal Revenue Service verify income, taxable wages, and Medicare tax contributions reported by employers. It includes essential business details, such as the employer identification number, business name, and legal address, and applies to most employers, including those in the military, agriculture, and railroads.
When You’d Use Form W-3
Employers file Form W-3 whenever they send paper copies of Form W-2 to the Social Security Administration. Employers must submit this form by January 31, unless the due date falls on a weekend or federal holiday, in which case the next business day applies.
If errors occur after submission, employers use related forms such as Form W-3c to correct totals or withholding amounts. When using payroll software or tax software, employers can file electronically through Business Services Online (BSO) to remain compliant and verify accurate wage reporting.
Key Rules or Details for 2024
For the 2024 tax year, employers filing ten or more W-2 forms must file electronically through Business Services Online. Employers submitting fewer forms may mail paper copies of Form W-3 and W-2s to the Social Security Administration SSA, ensuring all figures match across returns.
The W-3 form must accurately report total wages, taxes withheld, Social Security wages, and Medicare tax. Employers should also reconcile totals with quarterly reports such as Form 941, which track employee wages and compensation paid under the Federal Insurance Contributions Act and the Railroad Retirement Tax Act.
Step-by-Step (High Level)
Step 1: Gather Employee Data
Before completing Form W-3, employers should review all Forms W-2 to verify accuracy. Ensure employee wages, taxable wages, Social Security wages, Medicare tax, and withholding amounts are correct.
Step 2: Add Up Totals
Employers must total the following from all W-2 forms:
- Wages, tips, and other compensation
- Federal income tax withheld
- Social Security wages and tips (subject to tax)
- Withheld Medicare wages and taxes withheld
- Dependent care benefits, sick pay, and other compensation categories
Step 3: Complete Form W-3
The employer must enter business details, including:
- Employer Identification Number (EIN)
- Business name and legal address
- Kind of Payer (most use “941”)
- Kind of Employer (for example, nonprofit, federal, or state/local government)
- Total number of W-2 forms submitted
- Combined totals for wages, taxes, and tips
- Employer contact information and control number for record tracking
Step 4: Choose the Filing Method
Employers can choose one of two methods:
- File electronically through Business Services Online (BSO) on the SSA website. The platform allows the upload of payroll software files or the direct entry of employee wage data.
- File by paper if fewer than 10 W-2s are being submitted. Attach Copy A of all W-2 forms to the W-3 and mail them flat in one large envelope. Do not staple or fold the forms.
Step 5: Review and Sign
An authorized individual must sign and date the form. Review the totals carefully to compare figures with quarterly returns and payroll software reports.
Step 6: File by the Due Date
Submit the completed transmittal and accompanying wage and tax statements by January 31 to remain compliant.
Common Mistakes and How to Avoid Them
- Using an unscannable form: Copy A downloaded from IRS.gov cannot be used for mailing. Employers should order official red scannable forms or file electronically.
- Mismatched totals between W-3, W-2 forms, and Form 941: Verify that total wages and taxes withheld are consistent across all forms.
- Entering the wrong Employer Identification Number: Double-check EIN accuracy before filing.
- Incorrect formatting, such as light ink, small fonts, or dollar signs in number fields: Use black ink and standard font sizes only.
- Mailing damaged or folded forms: Submit clean, flat forms for accurate scanning by the SSA.
- Omitting required checkboxes for payer or employer type: Review instructions before finalizing the form.
- Filing after the due date: Prepare early to avoid penalties.
What Happens After You File
After employers submit Form W-3, the Social Security Administration processes the tax information to update employee earnings records. The SSA shares data with the IRS to verify income, ensuring accurate reporting of wages, tips, and other compensation.
Employers who file electronically receive confirmation through Business Services Online, while paper filers may receive mail notices if corrections are needed. Keeping accurate records of all forms, payroll data, and control numbers helps employers remain compliant with federal tax reporting requirements.
FAQs
What is IRS Form W-3 2024 used for?
IRS Form W-3 2024 serves as the transmittal of wage and tax statements that employers submit to the Social Security Administration. It summarizes total wages, taxes withheld, and other compensation paid to employees for the tax year.
Where should employers send Form W-3 and W-2 forms?
Employers must send paper copies of Form W-3 and W-2 forms to the Social Security Administration, not the Internal Revenue Service. The form includes the employer identification number, business name, and legal address for accurate reporting.
Can employers file Form W-3 electronically?
Most employers file Form W-3 electronically through the Business Services Online (BSO) system. This SSA platform helps verify wage and tax statements, allows for payroll software uploads, and ensures that total wages and withholding amounts match the related forms and figures.
What taxes are reported on Form W-3?
Form W-3 reports Social Security wages, Medicare tax, and other compensation such as dependent care benefits or sick pay. These amounts support compliance with the Federal Insurance Contributions Act and the Railroad Retirement Tax Act.
How can employers avoid mistakes when filing Form W-3?
Employers should verify employee wages by comparing figures with payroll software reports and confirming that the control number matches the W-2 totals. Filing electronically through Business Services Online helps ensure tax information and withholdings remain accurate and compliant.
