What is W-3?
A W-3, or Transmittal of Wage and Tax Statements, is an IRS form employers file to summarize and reconcile the wage and tax information reported on all of their employees’ W-2 forms for the year.
Why does W-3 matter?
The W-3 gives the Social Security Administration a single reconciling total for all W-2s an employer files, and errors between the two can trigger IRS correspondence or delays.
How does W-3 work?
Employers total all employee wages and withholding across every W-2 issued for the year, file the W-3 alongside those W-2s with the Social Security Administration, typically by January 31 for the prior tax year.
Frequently asked questions
Who has to file a W-3?
Any employer who issues one or more W-2 forms to employees must file a corresponding W-3 transmittal.
Is a W-3 the same as a W-2?
No, a W-2 goes to an individual employee; the W-3 is a single summary transmittal covering all of that employer’s W-2s for the year.
How BrightMove helps
BrightMove’s Back Office module keeps wage and pay data organized throughout the year, making year-end tax reporting straightforward for your finance team. See BrightMove’s Back Office billing and invoicing.