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W-3 2024 Form: What You Should Know

United States Department of the Treasury and Social Security Administration (SSA) about employee wages. Wages for Tax Purposes — Worksheet — Social Security Workers who receive wages during the first 20 weeks of the tax year should be included in the calculation of net earnings.  As a general matter, this rule would be most often fulfilled if the individual receives wages in the month of April or May. However, if an employee receives wages before those two months and the pay is received in January or February, then they would be included in their pay as of April or May. (See the IRS Form W-4 and the Federal Employee Salary Schedules (FES) for a more detailed explanation of this policy.) How much should the earnings figure be when using the Work Number method?  Form W-3, Transmittal of Wage and Tax Statements, is also used by payroll system providers to report workers' earnings for the purposes of determining the employees' wages. Since this is done separately from the reporting of employees' wages, its earnings should be tabulated according to the employer's specific method of calculating the earnings. The formula used to figure workers' wages is a bit complicated, so it's in the interest of the employee to familiarize himself or herself with it before they submit Form W-3. If your employer does not provide a work number option on your Form W-4 or W-4A, you can also use the Worksheet in the Form W-3 (Wage and Tax Statement) to calculate a work number for you. This requires the employee to provide you (in the last page of Form W-3) an estimate of the earnings or a statement that the payroll system provider should provide an estimate of the earnings. For information about how to use the Worksheet for a work number calculation, contact the Social Security Administration at or at SSA.gov.  Wages for Tax Purposes — Work Number, FICA, Tax, GPL — Worksheet For the most part, the earnings figure should be reported using the Work Number method, but not all wages will appear in the Worksheet as “earned.” If this is the case, you may use the following instructions to fill out the W-3: Form W-3, Transmittal of Wage and Tax Statements, can be completed using a computer or paper version for either the employer or employee.

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