So what is the W-3 tax form for? Form W-3 verifies the accuracy of your Form W-2. Form W-3 also provides a formal reconciliation of your quarterly tax payments for the year. Employers who submit at least one Form W-2 for their employees must submit a Form W-3. Filling out Forms W-2 and W-3 each January is a task at the beginning of the year that every company must complete with employees. Here`s a simple answer for you (yay!): No. Employers are required to send each employee`s respective Form W-2 by January 31 of each year, but they do not send a Form W-3 to anyone other than the SSA. All IRS “W” forms (W-2, W-3, W-4, etc.) are similar and are often confused, but one of them is often confused between IRS Form W-3 and IRS Form W-2, and rightly so. Both report very similar information about employees. Enter the combined income and tax information of all W-2s that you include in this W-3 filing. Employees look forward to receiving their W-2 forms and preparing their taxes for the previous year, hoping for a refund from the IRS. Companies know they must provide their employees with their W-2 forms by January 31 of each year so they can prepare their own taxes by April 15. In addition to providing tax records to employees, companies must also provide identification information to the IRS. Before submitting your form and payment, you must order paper copies of Forms W-2 and W-3 from the IRS.
Note: These forms cannot be downloaded from the IRS website and then submitted – you will need to order hard copies from the SSA. That`s why we seamlessly integrate with payroll software that reduces paperwork time like Form W-2 and Form W-3. The payroll software helps with payroll taxes and can even generate and file IRS W-2 and W-3 forms for you. You only need to complete Form W-3 C (Corrected Payroll and Tax Return Submission Form) if the original Form W-3 (Payroll and Tax Return Submission Form) contained an error. The W-2 and W-3 can be submitted by mail or electronically. However, if you have 250 or more W-2 forms, you must file both forms electronically. To remain compliant, you must submit Forms W-2 and Form W-3 to the SSA by mail or electronically by January 31 of each year. In addition to providing a Form W-2 (Form 1099 if you are using independent contractors) for each employee within the required time frame, companies must also submit copies of each employee`s Form W-2 to the SSA along with a Form W-3. Form W-3, officially the submission of payroll and tax returns, is a summary for the SSA of all salaries and contributions of the company`s employees for the previous year. This summary document provides a quick overview of the W-2 forms that are attached and sent with the form each January. Companies only need to submit the form to the SSA along with the corresponding W-2 forms. No payment will be sent when the W-3 is submitted.
Filling out and filling out Form W-3 is a fairly straightforward process. The form is similar to Form W-2. If you decide to mail the forms, send them to: Take a deep breath. Filling out Form W-3 may not be as difficult as you think. Because this form asks for the same information as the W-2 form, that`s more time than anything else. To help you out, we`ve provided instructions on Form W-3 in this article, and companies are working to compile their 2019 payroll data to submit to the IRS and Social Security Administration. Filing the proper tax forms is one of the most important tasks of an employer in January of each year. A W-3 is used to share all of your employees` annual W-2 information with the Social Security Administration. It serves as a summary sheet and contains totals for each employee`s Form W-2 fields. It is important to keep in mind that it must be used by employers, even if only a W-2 is submitted.
Any employer required to file Form W-2 must also file Form W-3. Make sure you are using the correct version. For example, use the 2022 version to file 2022 taxes, even if you`re working on the form in 2023. The main difference is that Form W-2 provides information such as total salaries and tax deductions for each employee. A Form W-3, on the other hand, shows employees` total wages, taxable wages, and taxes withheld. For example, if you have three employees, you must calculate and report the sum of their combined wages and taxes on your annual W-3 form. Forms W-3 and W-2 contain much of the same information, and any employer who is required to file one or more Form W-2 must also file a Form W-3. Form W-3 provides the IRS with a reference point for comparing individual employees` Form W-2 figures to their employer`s official totals. Now that you`re equipped with everything you need to know about W-3 forms, hopefully tax season is a little less stressful. You can always save this item and come back to it later if it`s too hard to absorb now.
Don`t worry, we`ll be there for you! Business owners or accountants must attach copy A of each employee`s Form W-2 to Form W-3 and send it to the SSA no later than January 31 of the year to receive last year`s report. Those who set the deadline of 31. January missed, can still submit, but probably with penalties. Keep in mind that you can`t just print a W-3 form from the IRS website and submit it to the SSA. The form is printed with a special red ink, so you must purchase the official form from the same place where you purchase your W-2 forms. If you work with a human resources and payroll provider, they will fill out the forms for you. For businesses that need more help, the SSA has a checklist that can help business owners fill out and submit their W-2 and W-3 forms. An IRS video can even walk you through the steps to reconcile your W-2 forms and the W-3 summary document. Form W-3 verifies employee and business information reported on your employees` W-2 forms. For example: Form W-3 is a tax form used by employers to report workers` combined income to the Internal Revenue Service (IRS) and the Social Security Administration. Employers who send more than one Form W-2 to employees must complete and submit this form to summarize the total amount of their salary payment and deductions. Employers who submit a single Form W-2 do not need a separate form to count totals because they appear on their employee`s Form W-2.
Form W-3, Submitting Payroll and Income Tax Returns, is a companion document to Form W-2 that summarizes the information on Form W-2. The IRS Form W-3 contains a compiled list of employee information included in all W-2 forms. Form W-3 is not a stand-alone form – submit it only with copies of all W-2 forms. For more instructions and information about Form W-3, visit the IRS website. The remainder consists mainly of copying the data from the W-2 forms into the W-3 form. The primary purpose of a Form W-3 is to act as a “cover page” for your W-2 forms so that the IRS and SSA can track all salaries, income, and taxes paid by an employer under the Federal Insurance Contribution Act (FCIA). The difference between Form W-2 and Form W-3 lies in the person(s) completing the forms. Employees must complete Form W-2, while employers are responsible for completing Form W-3. For businesses that file more than 250 W-2 forms, the IRS requires that the forms be filed electronically, unless they have provided a written waiver to the employer. The IRS prefers employer e-filing and has a variety of resources that allow businesses to submit forms online quickly and easily. If you are submitting W-2 forms for more than 250 employees (and therefore must submit them electronically), a Form W-3 is not required.
The A-H fields are for information about your company of the type of organization you are, at your EIN, at your address. Fill in these fields. You can also enter the name and contact information of each employee authorized to speak to the Social Security Administration with questions. If you have more than 50 employees or 50 W-2 forms, you can use payroll software or specific tax software to upload multiple W-2 payroll and tax forms to BSO. The format must meet certain SSA specifications. This corresponds to the deadline to provide employees with a copy of their individual W-2 on January 31 of each year for the previous tax year. Employers must prepare and send Form W-2 to employees on time and send copy A of each Form W-2 with the W-3 summary document by January 31. Employers must submit Forms W-2 and W-3 to the Social Security Administration by January 31 of each year.