What’s the difference between W2 and W3 tax forms?

The W2 form, also known as the Wage and Tax Statement, is a form that is issued by the employer to the employee at the end of the year. It shows the employee's total wages earned for the year, as well as the amount of taxes that have been withheld from their paychecks. The W2 form is important because the employee uses it to file their personal income tax return.

2023 W2 form

On the other hand, the W3 form, also known as the Transmittal of Wage and Tax Statements, is a form that is submitted by the employer to the Social Security Administration (SSA) and the Internal Revenue Service (IRS). It summarizes the information from all of the W2 forms that the employer has issued to their employees. The W3 form is important because it allows the SSA and the IRS to verify the information on the W2 forms and make sure that the taxes have been reported correctly

2023 W3 form

In summary, the W2 form is issued to the employee, and it shows their total wages and taxes withheld for the year. Both forms are due to the SSA every year by January 31st and you can file electronically. The W3 form is submitted by the employer, and it summarizes the information from all of the W2 forms that have been issued to their employees. Both forms are important for different reasons and play a crucial role in the tax filing process.

It's essential to keep an eye on these forms and make sure that they are accurate and up-to-date. If you have any questions or concerns about your W2 or W3 forms, be sure to reach out to your employer or a tax professional for assistance.