What Form W-3 (2022) Is For
IRS Form W-3 (2022), also known as the Transmittal of Wage and Tax Statements, summarizes all Form W-2 wage and tax statements submitted by an employer. It reports total wages paid, income tax withheld, Social Security tax, and Medicare tax to the Social Security Administration (SSA). The W-3 form ensures the accuracy of combined income totals, taxable wages, and taxes withheld for each tax year.
Employers must file Form W-3 with the SSA to reconcile employee wages, compensation paid, and related employment tax forms such as Forms 941, 943, or 944. This tax statement also provides the SSA with the employer identification number, business details, and contact information required to verify all employee wage files.
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 (2022) — A Complete Guide for Employers.
When You’d Use Form W-3
Most employers must file Form W-3 whenever they submit one or more Forms W-2. The form is due to the Social Security Administration by January 31 of the year following the close of the tax year. Both agricultural employees and nonagricultural employees are covered, including household employers who pay household employees wages subject to income tax withholding or Social Security tax.
Employers must also use the form when filing corrected tax statements using Form W-3c and W-2c. Late or amended filing is allowed only under special conditions, such as natural disasters. Employers who e-file can use the Business Services Online portal or approved payroll software to upload wage files and ensure compliance with Internal Revenue Service (IRS) requirements.
Key Rules or Details for 2022
For the 2022 tax year, employers who file 250 or more W-2 forms must e-file Form W-3 electronically through the SSA’s Business Services Online. Paper copies must use official red-ink forms available through the IRS website or approved vendors. Using downloaded copies or unofficial formats may result in rejection.
Employers should verify that wages paid, dependent care benefits, and other compensation categories align with the same information reported on related employment tax forms. All business details, including the legal address and control number, must be accurately displayed. Reconciliation is essential to ensure that total wages and taxes withheld align with income tax withholding and Social Security tax amounts reported to the Internal Revenue Service.
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: Prepare Forms W-2
Ensure each employee’s Form W-2 is complete and accurate. Verify total wages, income tax withheld, Social Security tax, Medicare tax, and any other compensation. Confirm Social Security numbers and control numbers match your payroll records.
Step 2: Complete Form W-3
Enter business details such as the employer’s name, legal address, Employer Identification Number, and total number of W-2 forms submitted. Total all wages and taxes across all W-2s and record them in the corresponding boxes on Form W-3. These totals must equal the combined income and taxes withheld reported on your W-2s.
Step 3: Choose the Filing Method
Employers filing 250 or more W-2 forms are required to use electronic filing. The BSO portal allows users to create or upload wage files and automatically generate Form W-3. Those filing fewer than 250 forms may submit paper copies but must use approved versions with red ink.
Step 4: Apply to the Social Security Administration
Submit Copy A of all Forms W-2 and the Form W-3 to the SSA by January 31. Paper filers should mail their documents flat and unstapled to the SSA’s Direct Operations Center in Wilkes-Barre, Pennsylvania. Electronic filers should upload wage files through Business Services Online.
Step 5: Distribute Employee Copies
Provide employees with copies of Forms B, C, and 2 of the W-2 by January 31. Sending them by mail or electronically by this date satisfies the IRS requirement.
Step 6: File State or Local Copies
Send Copy 1 of Form W-2 to applicable state, city, or local tax agencies. Requirements vary, so check your jurisdiction’s filing rules.
Step 7: Retain Records
Keep a copy of all Forms W-2 and W-3 for at least four years. These records serve as proof of wages paid and taxes withheld, in case the IRS or SSA requests verification.
Common Mistakes and How to Avoid Them
- Formatting errors: Many employers print Copy A from the IRS website, which is not acceptable. Always order official forms or use e-file options.
- Incorrect totals: A mismatch between totals on Forms W-2 and W-3 will delay processing. Double-check all amounts before submission.
- Employer Identification Number (EIN) issues: Using an incorrect EIN or substituting an employee’s Social Security number can result in rejection. Verify your EIN matches what appears on prior tax returns.
- Physical damage: Folding, stapling, or smudging paper forms can make them unreadable. Use black ink and print clearly.
- Failure to reconcile: Failing to compare Form W-3 with your quarterly returns (Forms 941 or 943) often leads to IRS follow-ups. Always confirm totals match before filing.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
Once the Social Security Administration receives the Form W-3 and all associated W-2 forms, it processes the wage files and updates employee Social Security and Medicare records. The Internal Revenue Service uses the information to verify income tax, Social Security tax, and Medicare taxes withheld.
If the amounts reported differ from the totals on related employment tax forms, employers may receive notices from the SSA or IRS. Corrections should be filed promptly using Form W-3c. Filing through tax software or payroll software reduces errors and ensures the accurate upload of wage files, preventing delays during tax time.
FAQs
Can employers file Form W-3 without attaching Forms W-2?
Employers cannot file Form W-3 alone because it serves as the transmittal for all Forms W-2. The Social Security Administration requires both forms to be submitted together to verify wages paid, taxes withheld, and employee wage information for the tax year.
Where should employers file Form W-3 for 2022?
Employers must file Form W-3 for the 2022 tax year with the Social Security Administration, not the Internal Revenue Service. The SSA processes all wage and tax statements and uses them to reconcile income taxes and Social Security tax records.
Is electronic filing required for the W-3 form?
Most employers who file 250 or more W-2 forms must e-file Form W-3 through the SSA’s Business Services Online system. This method enables users to securely upload wage files, ensuring that total wages and tax information are accurately transmitted.
What are common errors when completing IRS Form W-3 2022?
Common errors include using the wrong Employer Identification Number, incorrect total wages, mismatched income tax withholding, or incomplete contact information. Employers should verify all business details, review related employment tax forms, and avoid filing paper copies with mistakes.
Are household employers required to file a W-3 form?
Yes, household employers who pay household employees wages subject to Social Security, Medicare tax, or income tax withholding are required to file Forms W-2 and W-3. Filing ensures that employee wages, dependent care benefits, and taxes withheld are reported correctly to the Social Security Administration.
For more resources on filing or understanding prior-year IRS forms, visit our Form Summaries and Guides Library or see our IRS assistance guide.
