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You figure self-employment tax (SE tax) yourself using Schedule SE (Form 1040). Social Security and Medicare taxes of most wage earners are figured by their employers. Also you can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income.
The IRS requires most employers to file payroll Forms W-2 and W-3 at the beginning of each year for the previous year. Form W-3 (Transmittal of Wage and Tax Statements) is a summary of all the W-2 forms you are submitting to the federal government.RS directions. You may use this box to identify separate establishments in your business. You may file a separate Form W-3, with Forms W-2, for each establishment even if they all have the same EIN; or you may use a single Form W-3 for all Forms W-2 of the same type.