EMPLOYERS GUIDE
Section 21: ANNUAL REPORT OF WITHHOLDING - FORM W-3
Form W-3, Reconciliation of monthly W-1 or quarterly W-1Q returns or Form W-3A/W2 Reconciliation/Transmittal of eighth-monthly W-1A returns of Delaware income tax withheld must be filed no later than February 28, and must be accompanied by a duplicate of each Form W-2 issued to employees for the previous year.
If the W-3A/W2 Reconciliation Form shows an underpayment for the calendar year, the remittance must accompany the W-3 return. If the W-3 Form shows an overpayment, attach an explanation for the adjustment and this amount will be refunded provided such overpayment does not result from over- withholding. In such cases the amount overwithheld will be refunded to the employee at the time his or her tax return is filed.
Employers who pay wages to employees whose wages are insufficient to require withholding must file an annual reconciliation, Form W-3, and supply to the Division and to each employee a copy of Form W-2, Statement of Wages Paid.
Records To Be Kept
