What You Need to Know About Form W-3 and Your Mailing Address 2022
Each year, employers must share their employee’s wage and tax withholding numbers with the Social Security Administration using Form W-3. This file must follow the SSA’s EFW2 specifications along with Missouri modifications.
To ensure it’s filed correctly, be sure the totals entered in each box match those submitted on the individual W-2 forms throughout the year. Here are a few tips to help you get started:
Box 1: Employer Identification Number (EIN)
An EIN is a unique nine-digit number that identifies your business. It’s similar to a personal Social Security number, but it’s used only for business tax reporting purposes. The EIN can help you keep your business and personal finances separate, and it’s required if you have employees or pay taxes on income that’s not wages.
The IRS offers a free online service for businesses to apply for an EIN. Applicants must provide basic information about the business, such as its legal structure, name and address. They also must identify the responsible party. This is the person who ultimately owns or controls the business and exercises ultimate effective control over it.
Typically, the IRS processes an EIN application within four business days. It can be submitted online, by phone, fax or by mail.
Box 2: State Employer Identification Number (SSN)
An EIN is the unique number that identifies your company. It has nine digits and is formatted like a Social Security number. Only businesses can have an EIN. Employees cannot use an EIN to identify themselves.
Employees should always check their name and SSN against their Social Security card to ensure it matches payroll records. If there are any discrepancies, the employee should contact the Social Security Administration to correct them.
The reprint request form requires employees to provide their name, current mailing address, Social Security number and Employee ID, requested tax years and signature. It also asks for an activation code that is mailed to the employer. The activation code is used to access the online reprinting service. Employees can also call PostalEASE to request reprints by telephone.
Box 3: City or Town
A city or town is a type of populated place that differs from a borough, village or county by population size and type of government. It may also be referred to as a development town or a suburban city.
The W-3 form is used to share information from each employee’s annual W-2 forms with the Social Security Administration (SSA). It acts as an overview of the totals for all boxes on the W-2s submitted by the employer.
Businesses should complete Boxes c through h of the W-3 to provide the SSA with important information about their business. This includes the number of W-2 forms that are being transmitted, the business name, address and zip code, and the EINs used by the business this year.
Box 4: Zip Code
Invented in 1963, ZIP codes were devised to denote individual post office locations for more efficient mail exchange and delivery. The first three digits identify the central mail processing facility or Sectional Center Facility, while the final two digits delineate a delivery segment, such as one side of a street or a floor in a large building.
While ZIP Codes may seem like they’re drawn based on geographic regions, this is not true. They’re based on the logistical and transportation needs of the USPS.
For this reason, many companies use zip code verification tools to ensure that their mailing addresses are correct and deliverable. These tools can also be used to gather valuable demographic data and enhance email campaigns.
Box 5: Country
Box 5 of Form W-3 reports the amount of wages that are subject to Medicare tax. Medicare wages typically match the total wage base shown in Box 1 of Form W-2, but may include additional types of compensation or reductions in taxable income, such as deferred compensation, 401(k) contributions and sick pay. In addition, the IRS specifies several codes that identify other deductions or reductions in taxable wages, including medical expenses and employer contributions to retirement plans. Box 13 identifies whether an employee is participating in a retirement plan, such as the Public Employees’, State Teachers’, Judges’ or Legislators’ Retirement System. If so, an “X” must be entered in this box. Otherwise, leave the box blank.
Complete all boxes on the W-3 and transmit it to the IRS by January 31 2022.