Payroll Update Staff
The IRS has issued a draft version of Form W-3 (Transmittal of Wage and Tax Statements) for the 2024 tax year. There are no substantial changes to the 2024 version of Form W-3, when compared to the tax year 2023 version.
Use of Form W-3.
A Form W -3 transmittal should be completed only when filing paper Copy A of Form(s) W-2 (Wage and Tax Statement). The IRS explains that the form should not be filed alone and it should be sent even if only one paper Form W-2 is being filed. The IRS says to make a copy of Form W -3 and keep it with Copy D (For Employer) of Form(s) W-2 for recordkeeping purposes. The IRS recommends retaining copies of Forms W -3 for four years.
Electronic filing encouraged.
The Social Security Administration (SSA) strongly suggests employers report Form W -3 and Forms W-2 Copy A electronically, instead of on paper. The SSA provides two free e-filing options on its Business Services Online (BSO) website: (1) W-2/W-2C Online (use fill-in forms to create, save, print, and submit up to 50 Forms W-2 at a time to the SSA); and (2) Wage File Upload (upload wage files using payroll or tax software that formats the files according to the SSA’s Specifications for Filing Forms W-2 Electronically).
Electronic threshold reduction and changes.
Beginning with the 2023 tax year (2024 filing year), the threshold for required electronic filing of wage statements and information returns is reduced from 250 forms of the same type to 10 forms in aggregate.
Public comments.
Comments regarding the draft forms may be submitted at: IRS.gov/FormsComments. Include “NTFW3” in the body of the message to route the message properly.
For W-2 filing requirements, see Payroll Guide ¶4261.
Get all the latest tax, accounting, audit, and corporate finance news with Checkpoint Edge. Sign up for a free 7-day trial today.
