Form W-3 Transmittal of Wage and Tax Statements: Your 2018 Guide

What Form W-3 Is For

Form W-3 is the cover sheet that employers use to transmit all their employees' W-2 forms to the Social Security Administration (SSA). Think of it as the summary page that goes on top of a stack of documents—it tells the SSA how many W-2 forms you're submitting and provides the totals of all wages, tips, and taxes withheld across your entire workforce for the calendar year 2018. IRS.gov

The W-3 serves as a quality-control checkpoint. It must be filed whenever you file paper Copy A of Form(s) W-2 with the SSA, and it should never be filed alone—it only accompanies W-2 forms. If you e-file your W-2s through the SSA's Business Services Online (BSO) system, the system automatically generates your W-3 based on the W-2 data you enter, making the process much simpler. SSA.gov

The form captures critical information including your business name, employer identification number (EIN), the total number of W-2s you're submitting, and summary totals for federal income tax withheld, Social Security wages, Medicare wages, and other compensation details. This information helps the SSA reconcile your W-2 filings with the quarterly or annual employment tax returns (Forms 941, 943, 944, or Schedule H) you've already submitted to the IRS throughout the year.

When You'd Use It (Including Late & Amended Filing)

Standard Filing

For the 2018 tax year, you must file Form W-3 along with Copy A of all your employees' W-2 forms by January 31, 2019—whether you file electronically or on paper. This unified deadline applies to both filing with the SSA and furnishing copies to your employees. IRS.gov

Late Filing

If you miss the January 31 deadline, you can request one 30-day extension by submitting Form 8809 (Application for Extension of Time To File Information Returns) before the due date. However, extensions are no longer automatic for W-2 and W-3 filings as of 2018. The IRS only grants extensions in extraordinary circumstances or catastrophic situations, such as natural disasters or fires that destroy your business records. Even if your extension is approved for filing with the SSA, you still must furnish W-2s to your employees by January 31, 2019, unless you separately request an extension to furnish employee copies. IRS.gov

Amended/Corrected Filing

If you discover errors after filing your W-3 and W-2 forms, you don't file an amended W-3—instead, you use Form W-3c (Transmittal of Corrected Wage and Tax Statements) to accompany corrected W-2c forms. This applies whether you're correcting employee names, Social Security numbers, wage amounts, or tax withholdings. The SSA may also contact you if they detect inconsistencies in your submission and require you to resubmit corrected forms—but don't write "corrected" or "amended" on these resubmissions. IRS.gov

Key Rules for 2018

Several important rules governed Form W-3 filing for the 2018 tax year:

Mandatory E-Filing Threshold

If you're filing 250 or more W-2 forms, you must file electronically. Filing fewer than 250? E-filing is still encouraged but optional. You can request a waiver from the e-filing requirement by submitting Form 8508 at least 45 days before the W-2 due date. IRS.gov

EIN Consistency

The employer name and EIN on your W-3 must exactly match what appears on your quarterly employment tax returns (Forms 941, 943, or 944). Mismatches cause processing delays and potential penalties. IRS.gov

Social Security Number Requirements

Do not truncate or mask Social Security numbers on W-2 or W-3 forms. All nine digits must be visible (XXX-XX-XXXX format). Never use an Individual Taxpayer Identification Number (ITIN) in place of an SSN—ITINs are for non-employment tax purposes only. IRS.gov

Form Handling

If filing on paper, do not cut, fold, or staple Form W-3 to your W-2 forms. These documents are machine-read, and physical damage interferes with processing. Use only black ink, 12-point Courier font when possible, and mail forms flat—never folded. IRS.gov

New 2018 Requirements

The Tax Cuts and Jobs Act introduced two new reporting codes for box 12 of W-2 forms (codes GG and HH for qualified equity grants under Section 83(i)), which affects your W-3 totals if applicable to your employees. IRS.gov

Step-by-Step (High Level)

Step 1 – Gather Your W-2 Forms

Before starting your W-3, complete all individual employee W-2 forms for 2018. Organize them either alphabetically by employee last name or numerically by Social Security number—this helps with record-keeping and future audits.

Step 2 – Calculate Totals

Add up the amounts from all your W-2 forms for each box: total wages, federal income tax withheld, Social Security wages and tips, Social Security tax withheld, Medicare wages and tips, and Medicare tax withheld. These totals go on the corresponding boxes on Form W-3. Double-check your math—errors here trigger SSA rejections.

Step 3 – Enter Basic Information

Fill in boxes a through h with your control number (if used), type of payer (941, 943, 944, or household employer checkbox), total number of W-2s enclosed, your business EIN, your business name and address, and employee EIN (if reporting for only one client as an agent).

Step 4 – Complete Box 1 Through Box 19

Transfer your calculated totals into the numbered boxes. Make sure Medicare wages are at least as large as Social Security wages (since Medicare has no wage cap), or the SSA will reject your filing.

Step 5 – Contact Information

Provide a contact person's name, phone number, email, and fax if available. This allows the SSA to reach you quickly if problems arise.

Step 6 – Sign and Date

An authorized person must sign the form under penalties of perjury. Service bureaus or agents can sign on behalf of employers if they have proper authorization (Form 2678) and write "For (employer name)" next to the signature.

Step 7 – Mail or E-File

Mail paper forms to Social Security Administration, Direct Operations Center, Wilkes-Barre, PA 18769-0001. For e-filing, use the SSA's Business Services Online portal at SSA.gov/employer. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1 – Using Downloaded Forms

Many employers download Copy A from IRS.gov and print it on regular printers. The SSA will reject these forms—you must use the official red-ink scannable forms ordered from the IRS, approved substitute forms from payroll software, or e-file. Solution: Order official forms at IRS.gov/orderforms or use Business Services Online for e-filing. IRS.gov

Mistake #2 – Math Errors in Totals

The most common rejection occurs when Medicare wages are less than the sum of Social Security wages and tips, which violates wage reporting logic. Solution: Use a spreadsheet or payroll software to automatically calculate totals, and verify that Medicare wages ≥ Social Security wages before filing. IRS.gov

Mistake #3 – EIN/Name Mismatches

Your W-3 shows "ABC Company LLC" but your Form 941 shows "ABC Company"—the SSA flags this inconsistency. Solution: Use the exact business name and EIN that appear on your quarterly employment tax returns throughout the year. IRS.gov

Mistake #4 – Physical Damage to Forms

Stapling, folding, or using light-colored ink makes forms unreadable by SSA scanning equipment. Solution: Mail forms flat in large envelopes, use only black ink, and keep forms pristine. Consider e-filing to avoid these issues entirely. IRS.gov

Mistake #5 – Adding Dollar Signs or Omitting Decimals

Box amounts should read "45678.90" not "$45,678.90" or "4567890". Solution: Follow the format exactly as shown in the instructions—no dollar signs, no commas, always include cents with decimal point. IRS.gov

Mistake #6 – Missing the Type of Employer Checkbox

Forgetting to check the "941," "943," "944," or "Household employer" box in section b causes processing confusion. Solution: Match the checkbox to the employment tax form you filed during 2018. IRS.gov

Mistake #7 – Filing Without W-2s

Some employers mistakenly file W-3 alone as a summary. Solution: Form W-3 must always accompany W-2 forms—never file it by itself. IRS.gov

What Happens After You File

Immediate Processing

The SSA's computer systems check for internal consistency—Medicare wages should equal or exceed Social Security wages, tax amounts should correspond logically to wage amounts, and totals on W-3 should match the sum of individual W-2s. IRS.gov

Acceptance or Rejection

If your submission passes validation, the SSA accepts it and begins posting earnings to employees' Social Security records. These records determine future Social Security and Medicare benefits. The SSA also shares the wage and tax information with the IRS for tax compliance purposes. IRS.gov

Error Notifications

If the SSA detects errors, you'll receive notification by email or postal mail explaining what's wrong and how to correct it. You must resubmit corrected W-2s and W-3 (but don't write "corrected" on the forms). Common rejection triggers include wage/tax mismatches, missing EINs, or invalid Social Security numbers. IRS.gov

Reconciliation with IRS Returns

Behind the scenes, the IRS compares your W-3 totals with the quarterly or annual employment tax returns you filed during 2018. Significant discrepancies may trigger correspondence from the IRS requesting an explanation or correction.

Employee Records Updated

Once processed, each employee's reported wages, Social Security taxes, and Medicare taxes are permanently added to their SSA earnings record, which workers can view through their my Social Security account at SSA.gov.

Retention Requirement

Keep Copy D of all W-2s and a copy of your W-3 for at least 4 years. The IRS or SSA may request these records during audits or investigations. IRS.gov

FAQs

Q1: Do I need to file Form W-3 if I only have one employee?

Yes. Even if you have just one employee—including household employees like nannies or housekeepers—you must file Form W-3 to transmit that employee's W-2 to the SSA. Check the "Hshld. emp." box in section b if you're a household employer. IRS.gov

Q2: What's the penalty if I file Form W-3 late?

Penalties for late filing depend on how late you file. For returns due after December 31, 2018: $50 per W-2 if filed within 30 days late (max $545,500, or $191,000 for small businesses); $100 per W-2 if filed 31 days late through August 1 (max $1,637,500, or $545,500 for small businesses); $270 per W-2 if filed after August 1 or not filed at all (max $3,275,500, or $1,091,500 for small businesses). Intentional disregard carries a minimum $540 penalty per form with no maximum. IRS.gov

Q3: Can I e-file Form W-3 separately from my W-2s?

No. When you e-file W-2s through the SSA's Business Services Online system, the system automatically generates Form W-3 based on your W-2 data—you don't file them separately. For paper filing, W-3 must physically accompany the stack of W-2 Copy A forms. IRS.gov

Q4: I made a mistake on my W-3 after filing. How do I correct it?

File Form W-3c (Transmittal of Corrected Wage and Tax Statements) along with corrected W-2c forms for the affected employees. Form W-3c works just like W-3 but shows the corrected information. You can file W-3c at any time after discovering an error—there's no deadline for corrections. IRS.gov

Q5: What's the difference between Form W-3 and Form W-3c?

Form W-3 is the original transmittal for your initial W-2 filing. Form W-3c is specifically for transmitting corrected W-2c forms when you need to fix errors in previously filed W-2s. Think of W-3 as your first submission and W-3c as your correction submission. IRS.gov

Q6: My business uses a payroll service. Who's responsible for filing Form W-3?

You, the employer, remain legally responsible for ensuring Forms W-2 and W-3 are filed correctly and on time, even if you hire a payroll service. The payroll service can sign and file the forms as your agent (if authorized), but if they file late or incorrectly, the IRS assesses penalties against you, not the service. Always verify your payroll service has filed on your behalf. IRS.gov

Q7: Where do I send Form W-3—to the IRS or the SSA?

Send Form W-3 and Copy A of all W-2 forms to the Social Security Administration at: Direct Operations Center, Wilkes-Barre, PA 18769-0001. Do not send these forms to the IRS. However, do send Copy 1 of W-2s to your state tax department if required. IRS.gov

Additional Resources

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Sources: All information sourced from official IRS.gov publications, specifically the 2018 General Instructions for Forms W-2 and W-3 (Publication iw2w3--2018.pdf) and the IRS Forms W-3 and W-3C information pages.