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Instructions for Forms W-2 & W-3 2003 Tax Year

Instructions for Forms W-2 and W-3 - Introductory Material

This is archived information that pertains only to the 2003 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

Items To Note

New size for 2004 Forms W-2 and W-3.   The 2004 Forms W-2 and W-3 were reformatted to conform with the size and margins used in the substitute black and white laser Forms W-2 and W-3 shown in Exhibits E and F of the May 2003 revision of Pub. 1141, General Rules and Specifications for Substitute Forms W-2 and W-3. This change allows programmers to write universal code for data entry on both the official and the laser printed versions of the forms. Make certain that Copy A of your paper Forms W-2 and Form W-3 reflect these changes.

Health Savings Account (HSA).   A new code
(Code W–Employer's contribution to an employee's Health Savings Account), has been added to Form W-2 for use in 2004. See Health Savings Account on page 5.

Removal of dollar signs.   The dollar signs have been removed from Copy A of Forms W-2 and W-3 to provide more space.

The Privacy Act and Paperwork Reduction Act Notice   has been relocated to the back of Copy D of Form W-2.

Distributions from governmental section 457(b) plans of state and local agencies.   Generally, report distributions after December 31, 2001, from section 457(b) plans of state and local agencies on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. See Notice 2003-20 for details. You can find Notice 2003-20 on page 894 of Internal Revenue Bulletin 2003-19 at www.irs.gov/pub/irs-irbs/irb03-19.pdf.

Electronic payee statements.   If your employees give their consent, you may be able to furnish Copies B, C, and 2 of Forms W-2 to your employees electronically. See Pub. 15-A for additional information.

Extended due date for electronic filers.    If you file your 2004 Forms W-2 with the Social Security Administration (SSA) electronically (not by magnetic media), the due date is extended to March 31, 2005. For information on how to file electronically, see Magnetic media/electronic reporting on page 2.

Online filing of Forms W-2 and W-3.   File Forms W-2 and W-3 electronically by visiting the SSA's Employer Reporting Instructions and Information website at www.socialsecurity.gov/employer and selecting “Business Services Online.” SSA's “Create Forms W-2 Online” option allows you to create “fill-in” versions of Forms W-2 and Form W-3 for filing with the SSA and to print out copies of the forms for filing with state or local governments, distribution to your employees, and for your records.

Substitute forms.    If you are not using the official IRS form to furnish Form W-2 to employees or to file with the SSA, you may use an acceptable substitute form that complies with the rules in Pub. 1141, General Rules and Specifications for Substitute Forms W-2 and W-3. Pub. 1141, which is revised annually, is a revenue procedure that explains the requirements for format and content of substitute Forms W-2 and W-3. Your substitute forms must comply with the requirements in Pub. 1141.

Need Help?

Information reporting call site.    The IRS operates a centralized call site to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. If you have questions about reporting on these forms, call 1-866-455-7438 (toll free), Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern time. If you have questions about magnetic media or electronic filing of Forms W-2, contact the SSA at 1-800-772-6270 or visit the SSA website at www.socialsecurity.gov/employer.

Help for people with disabilities.   Telephone help is available using TTY/TDD equipment. If you have questions about reporting on information returns—Forms 1096, 1098, 1099, 5498, W-2, W-2G, and W-3, you may call 304-267-3367. For any other tax information, call 1-800-829-4059.

Online wage reporting.    Using a personal computer and a modem, you can access SSA's Business Services Online (BSO) to electronically report wage data. To obtain information regarding filing wage data electronically with SSA or to access BSO, visit the SSA's Employer Reporting Instructions and Information website at www.socialsecurity.gov/employer. Call the SSA at 1-888-772-2970 if you experience problems using any of the services within BSO.

  The website includes magnetic media filing information, some IRS and SSA publications, information on electronic filing, and general topics of interest about annual wage reporting. You can also use BSO to ask questions about wage reporting.

Employment tax information.   Detailed employment tax information is given in:
  • Circular A (Pub. 51), Agricultural Employer's Tax Guide
  • Circular E (Pub. 15), Employer's Tax Guide
  • Pub. 15-A, Employer's Supplemental Tax Guide, and
  • Pub. 15-B, Employer's Tax Guide to Fringe Benefits.

  You can also call the IRS with your employment tax questions at 1-800-829-4933.

How To Get Forms and Publications

Personal computer.    You can access the IRS website 24 hours a day, 7 days a week at www.irs.gov to:
  • Download forms, instructions, and publications.
  • See answers to frequently asked tax questions.
  • Search publications on-line by topic or keyword.
  • Send us comments or request help by email.
  • Sign up to receive local and national tax news by email.

CD-ROM.   Order Pub. 1796, Federal Tax Products on CD-ROM, and get:
  • Current year forms, instructions, and publications.
  • Prior year forms, instructions, and publications.
  • Popular tax forms that may be filled in electronically, printed out for submission, and saved for recordkeeping.
  • The Internal Revenue Bulletin.

  Buy the CD-ROM on the Internet at www.irs.gov/cdorders from the National Technical Information Service (NTIS) or call 1-877-CDFORMS (1-877-233-6767) toll free.

By phone and in person.    You can order forms and publications 24 hours a day, 7 days a week, by calling 1-800-TAX-FORM (1-800-829-3676). You can also get most forms and publications at your local IRS office.

Earned Income Credit (EIC) Notice

You must notify employees who have no income tax withheld that they may be able to claim an income tax refund because of the EIC. You can do this by using the official IRS Form W-2 with the EIC notice on the back of Copy B or a substitute Form W-2 with the same statement. You must give your employee
Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording if: (a) you use a substitute Form W-2 that does not contain the EIC notice, (b) you are not required to furnish Form W-2, or (c) you do not furnish a timely Form W-2 to your employee. For more information, see section 10 in Circular E (Pub.15).

Common Errors on Forms W-2

Forms W-2 provide information to your employees, the SSA, the IRS, and state and local governments. Avoid making the following errors, which cause processing delays.
Do not:

  • Use ink that is too light to make entries. Use only black ink.
  • Make entries that are too small or too large. Use 12-point Courier font, if possible.
  • Add dollar signs to the money-amount boxes. They have been removed from Copy A and are not required.
  • Inappropriately check the “Retirement plan” checkbox in
    box 13. (See Retirement plan on page 10.)
  • Misformat the employee's name in box e. Enter the employee's first name and middle initial in the first box and his or her surname in the second box.

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