A W-3 form is a summary of your W-2 forms. The W-3 and copy A of all W-2s must be mailed to the Social Security Administration no later than the end of January...even if you file them electronically!
Notice that you do not send the W-3 to the IRS. Instead, the Social Security Administration shares the W-3 and W-2 information with the IRS.
Note: the Social Security Administration has a free electronic filing option available that allows you to prepare and submit up to 20 W-2s. You have to set up a user name and password, but it is easy to do. See the above link for instructions.
The Church Accounting: How To Guide devotes a whole section of the book to payroll for churches. It covers payroll terminology and forms and then takes you through the steps necessary to set up a payroll, calculate and file the necessary taxes and forms, and even details how to handle the minister's payroll. It also includes sections on filling out IRS forms: 1099, 1099-NEC, and 1096.
If you have QuickBooks or are considering using it in the future, go ahead and purchase the QuickBooks for Churches and the How To Guide combo for a complete package on setting up and administering a payroll using QuickBooks.
Note: Box a (control number) is optional. Usually smaller churches do not use this box.
The W-3 and the Copy A of all W-2s must be sent to the Social Security Administration at:
Data Operations Center
Wilkes-Barre, PA 18769-0001
Important: Don’t staple or tape the Copy As of the W-2s to each other.Put them in alphabetically order by employee’s last name or numerically order by employee’s social security numbers. Also do not fold the W-3 or W-2 forms. Send them to the SSA in a large flat envelope.
The Spreadsheet Package includes:
PLUS a Word document with 3 examples of contribution statements for cash, non cash, and quid pro quo donations that you can customize for your own use!
If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.
Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)