Forms W-2 and W-3 Filing Guide

Form W-2 tells each employee and the government what you paid and withheld during the year. Form W-3 is the summary that goes with the copies you send to the Social Security Administration (SSA). Both are due early in the year, and the penalties for late or wrong filings add up quickly when you have many employees. This guide covers the forms you will file in early 2027 for wages paid in 2026.

What gets filed and where

You prepare one Form W-2 for each employee who was paid wages during the year, including anyone who left. Copy A goes to the SSA with Form W-3. Copies B, C and 2 go to the employee, and Copy 1 goes to your state or local tax agency where required. You also keep a copy.

The totals on the W-3 should agree with your payroll records. Your four Forms 941 should show roughly twice the Social Security and Medicare tax that appears on the W-3, because the 941s include the employer share and the W-3 does not. See Form 941.

Due dates

January 31, 2027 is a Sunday, which is why the date moves to Monday. The same due date applies whether you file on paper or electronically. You can request one 30-day extension to file with the SSA on Form 8809, but the IRS grants these only in limited, extraordinary situations and does not treat them as routine. An extension to furnish employee copies is also possible by request on Form 15397, but it is generally short.

E-filing rules

The e-file rule counts all of your information returns together. If you must file at least 10 returns in a calendar year, such as nine Forms 1099-NEC and one Form W-2, you must e-file all of them. This threshold came into effect for returns due on or after January 1, 2024. You can ask for a waiver on Form 8508, but you must apply at least 45 days before the due date.

The SSA's Business Services Online website lets you create, save, print and submit W-2s and corrected W-2cs electronically, and it builds the W-3 for you. The online form is intended for up to 50 W-2s at a time, and new users should allow at least two weeks to finish registration, so do not wait until January. Larger employers use file upload.

Illinois adds its own e-file rule. The Illinois Department of Revenue requires employers and payers to file federal Forms W-2 and W-2c with the state electronically. Other states have their own rules, so check each state where you have employees. See state income tax withholding.

What changed for 2026 forms

• Box 12, code TP: total cash tips reported to the employer. Box 14b then shows a Treasury Tipped Occupation Code.
• Box 12, code TT: qualified overtime compensation, meaning the premium portion required by the Fair Labor Standards Act.
• Box 12, code TA: employer contributions to a Trump account, which employers could begin making July 4, 2026.
• Reporting threshold: for wages paid after 2025, you are not required to file a W-2 for an employee when you withheld no income, Social Security or Medicare tax and the wages were under the new $2,000 threshold. Check the instructions for the exceptions.

None of these amounts changes how the pay is taxed for Social Security and Medicare. For the details, see tips and overtime reporting. The totals for codes TP, TT and TA do not go on the W-3.

Corrections

Use Form W-2c and Form W-3c to fix mistakes after filing. If you e-filed the original, you must e-file the correction; if you filed on paper, correct on paper. Typical corrections include a wrong Social Security number or name, wrong wage amounts and duplicate forms. If you find an error in the new code TT amount, the IRS expects you to file and furnish a W-2c as soon as possible.

Penalties

For returns required to be filed after December 31, 2026, the IRS instructions list these tiers for each Form W-2: $60 if filed within 30 days after the due date, $130 if filed more than 30 days late but by August 1, and $340 after that or if never filed. Intentional disregard starts at $690 per form with no cap. Yearly maximums apply to the first three tiers and are lower for small businesses. A separate penalty applies to late or incorrect statements to employees. The amounts are adjusted for inflation, so confirm them each year. See information return penalties.

Common mistakes

• Mismatched names and Social Security numbers.
• Putting pre-tax benefits in the wrong boxes, so Box 1 and Boxes 3 and 5 are wrong.
• Leaving out taxable fringe benefits or the health insurance of a more-than-2% S corporation shareholder. See fringe benefits and taxable wages.
• Filing on paper after crossing the 10-return threshold.
• Waiting until the last week of January to fix address or name problems.

How we can help

We prepare, e-file and correct Forms W-2 and W-3, reconcile them to Forms 941 and state returns, and coordinate Forms 1099-NEC for your contractors. See payroll services and contractors and Form 1099-NEC.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.