W3 Form is a transmittal form that summarizes the information from the W-2 forms you’ve issued to your employees. It is typically filed with the Social Security Administration (SSA) along with the W-2 forms. By filing the W3 Form, employers provide the SSA with a comprehensive overview of their employees’ earnings and tax withholdings for the year. This information is used by the SSA to ensure accurate reporting of Social Security benefits and to reconcile the data with individual tax returns filed by employees.

The deadline for filing the W3 Form depends on the type of filer you are. If you are filing electronically, then the deadline is January 31 of the year following the tax year being reported. If you are filing by paper, then the deadline is the last day of February of the year following the tax year being reported. The penalty for late filing for small businesses (those with average annual gross receipts of $5 million or less) is $50 per W-2 if you file within 30 days of the due date, with a maximum penalty of $556,500 per year, $110 per W-2 if you file more than 30 days after the due date but before August 1, with a maximum penalty of $1,669,500 per year, or $280 per W-2 if you file on or after August 1 or do not file at all, with a maximum penalty of $3,339,000 per year.