The term 3-W Tax form refers to the summary of earnings, medicare wages, Social Security wages and taxes related to the employees which then helps in sending the W-2 form to the Social Security Administration. For ISR, the concept of the W-3 tax form is called as Transmittal of Wage and Tax Statements.
Key components of W-3 Form
- Information about the employer such as name, address and EIN
- Summary of the total earnings, Medicare wages, Social Security Wages and Taxes that were reported in the W-2 form
- A specified calendar year for which informed taxes and wages are reported.
Who can fill out the W-3 form?
The employer who fills out the W-2 form must also fill out the W-3 form to transmit a copy of the W-2 form. The company needs to fill this form before January 31st of every year through SSA’s BSO portal.
Impact of W-3 form on company
It is very important for the HRM department to timely and accurately filling the W-3 form for getting compliance with SSA and IRS. If the company or HRM delays the form or there is any type of error found, this can lead to penalties and financial loss or in serious cases the administration can also terminate the Social Security and Medicare benefits. Therefore, the company must not delay this process for a better brand image.
