what is a w3 used for

what is a w3 used for

Tax time is upon us, and companies are working to compile their 2019 payroll information to undergo the IRS and the Social Safety Administration. Submitting the suitable tax kinds are one of the necessary duties an employer has in January of every 12 months.

Workers look ahead to receiving their W-2 kinds and making ready their taxes for the earlier 12 months within the hopes of a refund from the IRS. Companies know they need to present staffers with their W-2 kinds by the annual deadline of January 31 of every 12 months to allow them to get their very own taxes ready by the person deadline of April 15. However along with offering workers members with their tax documentation, companies should present figuring out info to the IRS on the identical time.

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The W-3 kind and companies

Along with offering every worker with a W-2 kind (1099 kinds if you happen to use impartial contractors) by the required deadline, companies should additionally file copies of every worker’s W-2 with the SSA, together with a W-3 kind.

The W-3 kind, formally the Transmittal of Wage and Tax Statements, is a abstract for the SSA of all of the enterprise’ worker wages and contributions for the earlier 12 months. This abstract doc supplies a fast overview of the W-2 kinds which are hooked up and despatched with the shape each January.

The W-3 supplies a approach for the SSA to reconcile that each one wages had been reported for the earlier 12 months and all the required FICA (Federal Insurance coverage Contributions Act) taxes have additionally been reported.

What’s included in a W-3 kind?

The W-3 kind basically totals up the entire W-2 information that employers submit in an summary doc. The shape summarizes employer identify, EIN (employer identification quantity), deal with, contact info, and different particulars.

The W-3 then supplies a complete of all of the enterprise’ worker info that features:

  • Wages, ideas, and different compensation
  • Allotted ideas
  • Wages and ideas topic to social safety tax
  • Wages and ideas topic to Medicare taxes
  • Federal earnings tax withheld
  • State earnings tax withheld
  • Social safety tax withheld
  • Medicare tax withheld
  • Dependent care advantages
  • Deferred compensation
  • Nonqualified plans

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Companies must solely file the shape with the SSA, together with the corresponding W-2 kinds. No cost is shipped when submitting the W-3.

Well timed submitting of W-3 kinds

Enterprise house owners or tax preparers should connect Copy A of every worker’s W-2 to the W-3 kind and ship it to the SSA no later than January 31 of the 12 months for final 12 months’s reporting. Those that miss the January 31 deadline can nonetheless file, however doubtless with penalties.

The W-2s and the W-3 kinds submitted in 2020 summarize all worker earnings and funds for the complete 12 months 2019. Whether or not you file electronically or by mail, the January 31 deadline is similar.

This aligns with the deadline to offer staff a replica of their particular person W-2 on January 31 of yearly for the earlier tax 12 months. Employers ought to have W-2 kinds ready and despatched to staff by the deadline, and ship Copy A of every W-2, together with the W-3 abstract doc, on or earlier than the thirty first of January.

Employers might file W-2 and W-3 kinds electronically via the SSA’s web site. For companies that wish to file manually, copies of the shape can be found via the IRS web site, however whether or not submitting electronically or via the mail, submissions should be postmarked no later than the thirty first of January.

For companies submitting greater than 250 W-2 kinds, the IRS requires the kinds be submitted electronically except they’ve offered the employer a written waiver. The IRS prefers employers file electronically and have a wide range of assets obtainable to assist companies file the kinds on-line shortly and simply.

Assist with W-3 kinds

For small companies that handle their very own tax obligations, the shape could seem difficult, however it’s merely a matter of including up all of the corresponding information that you just’ll discover on worker’s W-2 kinds. The W-3 kind mirrors the W-2 kind, with sections 1 via 11 duplicating the required information, like wages, ideas, and different compensation, federal earnings tax withheld, and many others.

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For firms that want extra help, the SSA has a guidelines that may assist enterprise house owners full and file their W-2 and W-3 kinds. An IRS video may even stroll you thru the steps of reconciling your W-2 kinds and the W-3 abstract doc.

Submitting W-2 and W-3 kinds each January is a beginning-of-the-year job that each enterprise with staff should full.

It could seem to be an intimidating course of, however with a little bit of steerage and the suitable instruments at your disposal, it may be simply and shortly completed.


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What Is a W-3 Form? And Do I Have to File One? What Is a W-3 Form? And Do I Have to File One?