The transmittal form that summarizes all W-2s filed with the Social Security Administration, showing combined totals for wages, tips, and taxes withheld across all employees for the calendar year.
Why Form W-3 matters for employers
Form W-3 is the cover sheet that accompanies W-2 Copy A submissions to the Social Security Administration. While each W-2 reports an individual employee's wages and taxes, the W-3 reports the aggregate totals across all employees. The SSA uses the W-3 to verify that the sum of all individual W-2s matches the total amounts reported. The W-3 must include the employer's name, address, and EIN, the tax year, the total number of W-2 forms included, and the summed amounts from each corresponding W-2 box: total wages, total Social Security wages, total Medicare wages, total federal income tax withheld, total Social Security tax, total Medicare tax, and all Box 12 coded amounts. The W-3 is filed with the SSA by the same January 31 deadline as the W-2s. Employers who file 10 or more W-2s during the calendar year are required to file electronically through the SSA's Business Services Online (BSO) portal. Electronic filers do not submit a physical Form W-3 but instead include the equivalent transmittal data in their electronic submission file. Employers filing fewer than 10 W-2s may still file paper, and a paper W-3 accompanies the paper W-2 Copy A forms. The W-3 should never be sent to the IRS, only to the SSA. Errors on the W-3 often result from arithmetic errors in summing the W-2s rather than from incorrect individual W-2s, so a final reconciliation before filing is important.
How BEG handles Form W-3 for clients
BEG Managed Payroll prepares and submits Form W-3 along with W-2 Copy A data to the SSA for all clients by January 31. BEG files electronically for all clients with 10 or more employees and ensures the W-3 totals reconcile to the sum of all individual W-2s before submission. W-3 filing is included in BEG Managed Payroll at $25-$45 per employee per month. Learn about BEG Managed Payroll.
Frequently asked questions
Do I need to file Form W-3 if I file W-2s electronically?
If you file electronically through the SSA's Business Services Online portal, you do not submit a physical W-3. The transmittal information is embedded in the electronic file. However, the equivalent of the W-3 data is always required as part of the submission.
Where is Form W-3 filed?
Form W-3 is filed with the Social Security Administration, not the IRS. Paper filers mail it to the SSA's processing center. Do not send W-3 to the IRS. The IRS receives Form 941 quarterly and uses that data, not the W-3, to reconcile employer payroll tax deposits.
What happens if the W-3 totals do not match the sum of the W-2s?
Discrepancies will trigger an SSA inquiry. The SSA matches W-2 data to individual Social Security earnings records. Errors must be corrected using W-2c and W-3c. Mismatches can also affect SSA benefit records for affected employees over time.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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