Glossary term
Form W-3 - Transmittal of Wage and Tax Statements
Form W-3 is the transmittal form employers use to send summary totals from employee Forms W-2 to the Social Security Administration.
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What Is Form W-3?
Form W-3, Transmittal of Wage and Tax Statements, is the summary form employers use when transmitting Forms W-2 to the Social Security Administration. It reports totals for wages, tips, compensation, federal income tax withholding, Social Security wages, Medicare wages, and related items across the employer's W-2 filings.
Employees generally do not file Form W-3. It is an employer reporting form that helps reconcile wage reporting between the employer, the SSA, and the IRS.
Key Takeaways
- Form W-3 summarizes the Forms W-2 an employer files for employees.
- It is filed with the Social Security Administration, not given to employees as their main wage statement.
- The totals on Form W-3 should match the related Forms W-2.
- Errors can create follow-up issues with wage records, payroll tax reporting, and employee tax documents.
How Form W-3 Works
At year-end, employers prepare Forms W-2 for employees and transmit those wage statements to the SSA. Form W-3 acts as the cover summary for that transmission. It aggregates the W-2 amounts so government systems can compare totals and process wage records.
Electronic filing changes the mechanics, but not the purpose. Whether filed on paper when allowed or through electronic systems, Form W-3 is part of the employer's annual wage-reporting process.
What It Summarizes
Item | What Form W-3 does |
|---|---|
Wages and tips | Reports total compensation from employee W-2s. |
Federal withholding | Summarizes income tax withheld from wages. |
Social Security wages | Reports wages subject to Social Security tax. |
Medicare wages | Reports wages subject to Medicare tax. |
Why Employers Need It Right
Form W-3 is not just clerical. If W-2 and W-3 totals do not reconcile with payroll tax returns such as Forms 941, 943, or 944, the employer may receive notices or need to correct records. Accurate filing also affects employees because wage records feed into Social Security earnings history.
The Bottom Line
Form W-3 is the employer's annual summary transmittal for W-2 wage statements. It helps government agencies reconcile wage and withholding data, so the form's value is in accurate totals and consistency with payroll records.