US Payroll – What is Form W-3? – Simple Explanation

🧾 What is Form W-3? – Simple Explanation

👉 Form W-3 is a summary form that the employer sends to the Social Security Administration (SSA).

✅ 1️⃣ Purpose
Summarizes the total wages, taxes withheld, and Social Security/Medicare amounts for all employees.

✅ 2️⃣ Who Files It
Filed only by employers — not employees.

✅ 3️⃣ What It Includes
Totals W-2 forms for the year issued to the Employee (wages, SS wages, Medicare wages, tax withheld).

✅ 4️⃣ When Used
Sent to SSA along with all employee W-2s.
(One W-3 covers all W-2s for the company.)

➡️ Form W-3 is commonly used while preparing tax returns such as S-Corporation, C-Corporation, and Partnership returns, to verify total wages reported and ensure payroll amounts match the company’s financials.

📘 Example
If a company has 8 employees, it submits:
• 8 —  W-2 forms → to employees & SSA
• 1  — W-3 form → summary of all 8 W-2s

💡 Quick Tip:
Form W-3 = Employer’s summary of all W-2s.