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What are Form W-2 and Form W-3?

W-2 is the yearly wage and tax statement for each employee. W-3 is the totals of all W-2s.

Payroll glossary3 min

What are Form W-2 and Form W-3?

The W-2 is the yearly wage and tax statement for each employee, and the W-3 is the totals of all the W-2s. Employers give each employee a W-2 and file copies with the Social Security Administration by January 31.

Why does it matter?

The W-2 shows an employee's total pay and the tax taken from it. The employee needs it to file a tax return.

The W-3 is the company's cover summary of every W-2 sent to the Social Security Administration.

The key facts

Fact	What it means
Form W-2	One for each employee. Wages paid and tax withheld in the year.
Form W-3	One for the company. The totals of all the W-2s, sent with the copies to the Social Security Administration.
Due	January 31 after the year ends, for the employee and for the SSA. When January 31 falls on a weekend or holiday, the next business day.
Where in StartEase	Reports & forms: W-2 (per employee) and W-3 (totals).
The employee side	The employee portal shows when the W-2 will be ready. It has no W-2 download button yet, so the employer prepares each W-2 and gives it to the employee.

How does it work in StartEase Payroll?

Make sure every payroll for the year is approved.
Check each employee's name, Social Security number and address.
Open Reports & forms, choose W-2 (per employee), pick the employee, and check the boxes.
Choose W-3 (totals) for the company totals.
Give each employee their W-2, file with the SSA, and record the filing.

Common mistakes

A Social Security number that does not match the employee's card.
Missing January 31 for either the employee copy or the SSA copy.
Handing out a corrected form before your payroll team confirms what it should say. A corrected form (W-2c) can be issued when something is wrong.

Sources (government sites)

Next: What is Form 1099-NEC?

What are Form W-2 and Form W-3?