Form W-3

Get Now

Form W-3: Why to Fill Out in 2023?

Are you a US taxpayer? Are you confused about the W-3 form? Don't worry! This article is here to help you understand the purpose and importance of the tax document. The W-3 copy is an important document used to report wages and taxes that have been withheld from employees' paychecks. It’s essential to understand how to file the federal W-3 form correctly, as failure to do so could result in penalties from the IRS.

Who Must File It?

It’s a transmittal form that must be completed and filed by employers who pay their employees' wages. This form reports the wages and taxes withheld from the employee's paycheck. It is not necessary to file the W-3 copy if you’re self-employed, as the IRS does not require this form for individual taxpayers. Employers must ensure that the Transmittal of Wage and Tax Statements is filed promptly and follows IRS regulations.

Difference Between the W-2 & W-3 Purposes

  • The W-2 form is used to report income and taxes withheld from employee wages and salaries. The W-3 form summarize the information reported on the W-2 forms.
  • The W-2 requires employee information, such as their name, address, and Social Security Number. The W-3 template doesn’t require this information.
  • The blank W-2 copy must be filed for each employee, while the W-3 form is usually used to summarize the information from all of the W-2 forms.
  • The Wage and Tax Statement is sent to the employee, while the W-3 form is sent to the Social Security Administration.

Step-by-Step Filling Guide

The W3 form is relatively simple to fill out. Here is a step-by-step guide to help you get started:

  • Step 1: Gather all of the W-2 forms you need to report.
  • Step 2: Enter the employer's name, address, and Employer Identification Number (EIN).
  • Step 3: Summarize the information from the W-2 copies. Enter the total amount of wages, tips, and other compensation; the amount of federal income tax withheld; and the total social security and Medicare tax withheld.
  • Step 4: Review your information to ensure it is accurate.
  • Step 5: Sign and date the form, then send it to the IRS along with the IRS W2 forms.


  1. Is the W-3 form required?
    Yes, it’s required by the IRS for employers who are paying wages to employees. It is used to summarize the information taxpayer reported on federal Wage and Tax Statement forms. Employers must make sure that the W-3 is filed in a timely manner and in accordance with IRS regulations.
  2. How do I file the W-3 form?
    Once you’ve gathered all of the W-2 copies you must to report, you can fill out the W-3 by entering the employer's name and address, summarizing the information from the W-2 forms, and signing and dating the form. The document should then be sent to the IRS along with the W-2 forms.
  3. What happens if I don't file it?
    If you don’t file the tax document, you could face penalties from the IRS. It is important to ensure that the completed template is filed on time and according to IRS regulations. Penalties for failing to file the W-3 tax document can include fines, interest charges, and even criminal prosecution.

Related Forms

  • image W-2 The W2 Form is also known as the IRS Wage and Tax Statement. It’s a federal tax document designed and processed by the Internal Revenue Service to let employers report their employees for performing particular services during the year if the total of payments for these services exceeds $600 during the tax year. If you’re an employee, it’s important to make sure that your employer fills out the W2 tax form on time, as it’s related to your tax bill. Read this comprehensive... Fill Now
  • image Form W-2 G Tax season is one of the most important times of the year for U.S. taxpayers. Every year, millions of taxpayers must file a number of different forms, such as the W-2 and W-2 G forms. So just, what is the purpose and importance of the W-2 G form? Read on to find out. Who Must File It? The W-2 G form must be filed by any taxpayer who has won more than $600 in gambling winnings. This includes prize money from casinos, lotteries, horse and dog races, and other forms of gambling. The W-2 G form must be completed regardless of whether the taxpayer itemizes deductions or takes the basic deduction. The payer of the prize is also required to file the tax document. Difference Between the W-2 & W-2G forms The W-2 form is used to report wages, salaries, and tips received from an employer. It is also used to report any federal, state, or local taxes withheld from the employee’s paycheck. The W-2G form is used to report gambling winnings. It includes any federal, state, or local taxes that have been withheld from the prize money. The employer does not file the W-2G form; it is filed by the taxpayer who has won the gambling winnings. Filling Guide Begin by gathering all of the necessary information. You need to know the name of the payer, their address, and the amount of the money won. You also need your Social Security Number (SSN), as well as the payer’s taxpayer identification number (TIN). Fill out the form with the necessary information. On the first page, you’ll need to enter your name, address, and Social Security Number. On the second page, you’ll enter the payer’s information and the winnings amount. Calculate the amount of taxes that have been withheld from your winnings. This amount should be entered on the second page of the form. Check the “yes” box if you are subject to backup withholding. This applies if you haven’t provided the payer with your correct Social Security Number or you owe money to the IRS. Enter any applicable withholding information on the third page of the form. This includes any state or local withholding taxes that may have been deducted from your winnings. Sign and date the document. This is the final step in completing the W-2 G form. Make sure to keep a copy of the completed form for your records. You may need to refer to it in the future if you are audited by the IRS. FAQ Do I have to report my gambling winnings?Yes, you must report about your winnings if they exceed $600. You must file a completed W-2 G template in order to report your winnings. Do I have to pay taxes on my gambling winnings?Yes, you have to do that. The amount of tax you will owe depends on your income level, the type of gambling you did, and the amount you won. How do I report my gambling winnings?You must report your gambling winnings by filing a W-2(G) template. It must be filed regardless of whether you itemize deductions or take the standard deduction. The payer of the gain is also required to file the document. Fill Now