Module 7 W-3

Kind of Payer

-Check 941 if the employer files Form 941 and no other category, except third-party sick pay, applies. -Check Military if the employer is filing Forms W-2 for members of the uniformed armed services. This box is only checked by the U.S. Military. -Check 943 if the employer files Form 943, Employer's Annual Tax Return for Agricultural Employees. Make sure another Form W-3 is filed if the employer has non-agricultural employees reported on Form 941. -Check 944 if the employer files Form 944, Employer's Annual Federal Tax Return. -Check CT-1 if the employer is a railroad employer sending Forms W-2 for employees covered by the Railroad Retirement Tax Act (RRTA). Do not show employee RRTA wages or tax in Boxes 3, 4, 5, 6, and 7. Employers covered by RRTA who have employees that pay social security and Medicare taxes must file a separate Form W-3 with the Forms W-2 of these employees, checking the 941 box on that form. -Check Hshld emp. if the employer has household employees for whom Forms W‑2 are being sent. -Check Medicare govt. emp. if the employer is a government agency sending Forms W-2 for employees who are subject to Medicare tax but not social security tax. Make sure another Form W-3 is filed for employees paying both social security and Medicare taxes, and check the 941 box on that form.

Kind of Employer

-Check None apply if the employer is not a 501(c) non-govt, State/local non-501(c), State/local 501(c), or Federal govt. employer. -Check 501(c) non-govt. if the employer is a 501(c) non-profit organization but is not a governmental organization. -Check State/local non-501(c) if the employer is a -state or local government organization but is not a non-profit organization. -Check State/local 501(c) if the employer is a state or local government non-profit organization. -Check Federal govt. if the employer is a federal government organization. -Check Third-party sick pay as the third-party sick payer or when reporting sick payments made by a third party. If more than one box applies (e.g., this box and the 941 box) check both boxes. File a single Form W-3 for the regular and "third-party sick pay" Forms W-2.

Where to Send Form W-3

All paper filers must send Form W-3 along with paper copies of Form W-2, Copy A. Use the following address to send by the U.S. Postal Service: Social Security Administration Direct Operations Center Wilkes-Barre, PA 18769-0001 (use zip 18769-0002 for certified mail) Use the following address to send by a private delivery service: Social Security Administration Direct Operations Center ATTN: W-2 PROCESS 1150 E. Mountain Dr. Wilkes-Barre, PA 18702-7997

Box a

Control number. This box is optional. The employer may use it to number each transmittal.

Box 12a

Deferred compensation. Enter the total amounts from the Forms W-2, Box 12, Codes D-H, S, Y, AA, BB, and EE as one lump sum without any codes.

Box g

Employer's address and ZIP code. Enter the employer's address and ZIP code as shown on the employer's quarterly or annual employment tax returns (e.g., Form 941, 943, or 944).

Box e

Employer's identification number. Enter the EIN assigned by the IRS and used on the employer's quarterly or annual employment tax returns (e.g., Form 941, 943, or 944). Enter "applied for" if the number has not yet been received.

Box f

Employer's name. Enter the employer's name as shown on the employer's quarterly or annual employment tax returns (e.g., Form 941, 943, or 944).

Box 15

Employer's state I.D. number. Employers can use this box to enter their state identification number if a copy of Form W-3 is filed as a state reconciliation return.

Box 1-Box 11

Enter in each box the total amounts from the Forms W-2, Copy A being sent with the Form W-3. Disregard voided forms. NOTE: Box 9 is reserved for future use.

Box d

Establishment number. This box is an optional field that may be used to identify separate establishments filing Form W-3.

Box 13

For third-party sick pay use only. Leave this box blank. See Form 8922, Third-Party Sick Pay Recap. See Module 4, Lesson 4 for information on Form 8922.

Box 14

Income tax withheld by third-party payer. Enter the amounts employees have had withheld from third-party payments of sick pay. Enter the amount only if the third party properly transferred Form W-2 and 941 reporting liability to the employer. This amount is also included in Box 2. When the Box 14 amount is subtracted from the Box 2 amount, the result should be equal to the federal income tax withheld as reported on all of the Forms 941 filed for the year.

Box b

Kind of payer/employer.

Box h

Other EIN used this year. Enter an EIN that was used earlier in the year by the employer on Form 941, 943, or 944 (including a prior owner's EIN) that differs from the number in Box e. If more than one number was used, attach a letter that indicates them. When an agent who has filed an approved Form 2678, Employer Appointment of Agent, files an employer's Forms W-2 and Form W-3, the agent's EIN, name, and address should be in Boxes e, f, and g, respectively, while the employer's EIN should be placed in Box h. If the amounts in Box 2, 3, 5, 7, or 9 do not balance between Forms W-2 and 941 due to an acquisition or divestiture, Schedule D (Form 941) is used to explain the discrepancy to the IRS.

Boxes 16-19

State and local wages and taxes. The use of these boxes is optional. Use these boxes when submitting Form W-3 to the state or local taxing agency. Neither the SSA nor IRS provides this information to state or local taxing agencies.

When to Send Form W-3

The due date for filing Form W-3 is January 31. Form W-3 (with all Copies A of Forms W-2) must be postmarked by the U.S. Postal Service or accepted for delivery by a designated private delivery service by January 31. If January 31 is a Saturday, a Sunday, or a legal holiday, the due date is extended until the next business day. However, a proof of filing can only be obtained by using the U.S. Postal Service's Certified or Return Receipt services.

Box c

Total number of statements. Enter the total number of Forms W-2, Copy A, being transmitted with the Form W-3. Subtract any voided statements.

Form W-3

Transmittal of Wage and Tax Statements, is filed along with paper Forms W-2 with the SSA. Employers can file paper Forms W-2 and Form W-3 with the SSA only if the total number of Forms W-2 is less than 250. If 250 or more paper Forms W-2 are filed with the SSA, the IRS will penalize the employer up to $100 for each form filed on paper in excess of 249.