Section 4. General — Internal Revenue Bulletin 2002-31

.01 Employers not filing magnetically or electronically must file a paper Form W–2 (Copy A) and Form W–3 with the SSA using either the official IRS form or a substitute form that exactly meets the specifications shown in Parts B and C of this revenue procedure. Employers who file with the SSA magnetically, electronically, or on paper may design their own statements to furnish to employees. These employee statements designed by employers must comply with the requirements shown in Parts B and C.

.02 Red-Ink substitute forms that completely conform to the specifications contained in this revenue procedure may be privately printed without prior approval from the IRS or the SSA. Forms cannot be submitted to the IRS or the SSA for specific approval, except for the black-and-white laser printed (laser-printed) forms submitted to SSA for initial approval (see Section 1B of Part B).

.03 Substitute forms filed with the SSA and substitute copies furnished to employees that do not conform completely to these specifications are unacceptable. Forms W–2 (Copy A) and W–3 filed with the SSA that do not conform may be returned. In addition, penalties may be assessed for not complying with the form specifications.

.04 If you are uncertain of any specification and want it clarified, submit a letter citing the specification, state your interpretation of that specification, and enclose an example (if appropriate) of how the form would appear if produced using your understanding of the specification.

.05 Any questions about Copies 1, B, C, 2, and D of Form W–2 should be sent to:

Internal Revenue Service Attn: Substitute Form W–2 Coordinator W:CAR:MP:FP:S:SP 1111 Constitution Ave., N.W. Room 6411 IR Washington, DC 20224

Any questions about Form W–2 (Copy A) or Form W–3 should be sent to:

Social Security Administration Wilkes-Barre Data Operations Center ATTN: Program Analyst Office, Room 449 1150 E. Mountain Drive Wilkes-Barre, PA 18702–7997

Note : You should allow at least 30 days for the IRS or the SSA to respond .

.06 Forms W–2 and W–3 are subject to annual review and possible change. Therefore, employers are cautioned against overstocking supplies of privately-printed substitutes.

.07 Separate instructions for Forms W–2 and W–3 are provided in the 2002 Instructions for Forms W–2 and W–3 . Form W–3 should be used only to transmit paper Forms W–2 (Copy A). Form W–3 is a single sheet including only essential filing information. Be sure to make a copy of your completed Form W–3 for your records . Copies of the current year official IRS Forms W–2 and W–3, and the instructions for those forms may be obtained from most IRS offices or by calling 1–800–829–3676. The IRS provides only cutsheet sets of Forms W–2 and cutsheets of Form W–3. The instructions and information copies of the forms may be found on the IRS Website at www.irs.gov .

.08 Because substitute Forms W–2 (Copy A) and W–3 are machine-imaged and scanned by the SSA, the forms must meet the same specifications as the official IRS Forms W–2 and W–3 (as shown in the exhibits).

Part B. Specifications for Substitute Forms W–2 and W–3

Section 1A. Specifications for “Red-Ink” Substitute Forms W–2 (Copy A) and W–3 Filed With the SSA

.01 Employers may file substitute Forms W–2 and W–3 with the SSA. The substitute forms must be exact replicas of the official IRS forms with respect to layout and content because they will be read by scanner equipment.

.02 Paper used for substitute Form W–2 (Copy A) and Form W–3 (cutsheets and continuous-pinfed forms) that are to be filed with the SSA must be white 100% bleached chemical wood, 18-20 pound paper only, optical character recognition (OCR) bond produced in accordance with the specifications shown as follows:

- Acidity: Ph value, average, not less than ............................................................................................................................ 4.5

- Basis Weight: 17 x 22 inch 500 cut sheets, pound..........................................................................................................18-20

- Metric equivalent - gm/sq. meter ..................................................................................................................................68–75

(a tolerance of +5 pct. is allowed)

Stiffness: Average, each direction, not less than—milligrams

Cross direction ........................................................................................................................................................................50 Machine direction ...................................................................................................................................................................80

2002–31 I.R.B. 255 August 5, 2002

Tearing strength: Average, each direction, not less than—grams.........................................................................................40
Opacity: Average, not less than—percent..............................................................................................................................82
Reflectivity: Average, not less than—percent........................................................................................................................68

Thickness: Average—inch ...............................................................................................................................................0.0038 Metric equivalent—mm.....................................................................................................................................................0.097 (a tolerance of +0.0005 inch (0.0127 mm) is allowed): paper cannot vary more than 0.0004 inch (0.0102 mm) from one edge to the other.
- Porosity: Average, not less than—seconds ............................................................................................................................10
- Finish (smoothness): Average, each side—seconds .........................................................................................................20-55 (for information only) the Sheffield equivalent—units.............................................................................................170–d200
- Dirt: Average, each side, not to exceed—parts per million....................................................................................................8

Note : Reclaimed fiber in any percentage is permitted, provided the requirements of this standard are met .

.03 All printing of substitute Forms W–2 (Copy A) and W–3 must be in Flint red OCR dropout ink except as specified below. The following must be printed in nonreflective black ink :

Identifying control number “22222” or “33333” at the top of the forms.
Tax year at the bottom of the forms using 24-point OCR-A font.
The four (4) corner register marks on the forms.
The jurat and “Signature, Title, Date” line at the bottom of Form W–3.
The form identification number (“W–3”) at the bottom of Form W–3.
All the instructions below Form W–3 beginning with “Send this entire page....” line to the bottom of Form W–3.

.04 As in the past, Form W–2 (Copy A) and Form W–3 may be generated using a laser-printer by following all guidelines and specifications. In general, regardless of the method of entering data, the use of black ink on Forms W–2 and W–3 provides better readability for processing by scanning equipment. Colors other than black are not easily read by the scanner and/or may result in delays/errors in the processing of Forms W–2 and W–3. The printing of the data should be centered within the boxes. Type must be substantially identical in size and shape to the official form. All other printing, including shading and dollar signs for money boxes, on Form W–2 (Copy A) and W–3 must be in Flint J–6983 red OCR dropout ink or an exact match.

.05 The vertical and horizontal spacing for all federal payment and data boxes on Forms W–2 and W–3 must meet specifications. On Form W–3 and Form W–2 (Copy A), all the perimeter rules must be 1-point (0.014-inch), while all other rules must be one-half point (0.007-inch). Vertical rules must be parallel to the left edge of the form; horizontal rules parallel to the top edge.

.06 Employers filing Forms W–2 (Copy A) with the SSA on paper must also file a Form W–3. Form W–3 must be the same width (8.0 inches) as the Forms W–2. One Form W–3 is printed on standard-size, 8.5 x 11–inch paper. Two official Forms W–2 (Copy A) are contained on a single page that is 8.5 inches wide by 11 inches deep (exclusive of any snap-stubs). The official redink Form W–3 and Forms W–2 (Copy A) are 8.0 inches wide.

.07 The top margin for the Form W–2 (Copy A) and Form W–3 is .375 inch (3/8 inch). The right margin must be .2-inch and the left margin is .3-inch (plus or minus .0313-inch). Margins must be free of all printing.

.08 The form identifying control numbers are “22222” for Form W–2 (Copies A and 1) and “33333” for Form W–3. No printing should appear anywhere near the Form ID control numbers. For both Form W–2 (Copy A) and Form W–3, the combination width of box a (Control number) and the box containing the form identifying number (22222) must always be 2.54 inches.

Note : The form identifying control number must be printed in nonreflective black ink in OCR-A font of 10 characters per inch .

.09 The depth of the individual scannable image on a page must be the same as that on the official IRS forms. For Form W–2, the total depth of an individual form must be 4.94 inches. The depth of the Form W–3 on a page must be 4.8 inches.

.10 Continuous-pinfed Forms W–2 (Copy A) must be separated into 11-inch deep pages. The pinfed strips must be removed when Forms W–2 are filed with the SSA. The two Copies A of Form W–2 on the 11-inch page must not be separated (only the pages are to be separated (burst)). The words “Do Not Cut, Fold, or Staple Forms on This Page” must be printed twice between the two Copies A in Flint red OCR dropout ink. Perforations are required on all other copies (Copies 1, B, C, 2, and D) to enable the separation of individual forms.

.11 Box 12 of Form W–2 (Copy A) contains four entry boxes - 12a, 12b, 12c, and 12d. Do not make more than one entry per box. Enter your first code in box 12a ( i.e., enter Code D in box 12a, not 12d, if it is your first entry). If more than four items need to be reported in box 12, use a second Form W–2 to report the additional items (see “Multiple forms” in the 2002 Instructions for Forms W–2 and W–3 ). Do not report the same federal tax data to the SSA on more than one Form W–2 (Copy A). However, repeat the identifying information (name, address, EIN, etc.) on each additional form.

.12 The checkboxes in box 13 of Forms W–2 (Copy A) must be .14 inches each; the spacing on each side of the 3 checkboxes is .36-inches; the space after the 3rd checkbox is .46 inches (see Exhibit A). The checkboxes in box b of Form W–3 must be .14 inches (see Exhibit B).

Note : More than 50% of an applicable checkbox must be covered by an “X.”

August 5, 2002 256 2002–31 I.R.B.

.13 All substitute Forms W–2 (Copy A) and W–3 in the red-ink format must have the tax year, form number, and form title printed on the bottom face of each form using identical type to that of the official IRS form. The red-ink substitute Form W–2 (Copy A) and Form W–3 must have the form producer’s EIN entered to the left of “Department of the Treasury.”

.14 The words “For Privacy Act and Paperwork Reduction Act Notice, see separate instructions,” must be printed in Flint red OCR dropout ink in the same location as on Forms W–2 (Copy A). The 2002 Instructions for Forms W–2 and W–3 contain the Privacy Act Notice previously shown on the Form W–3.

.15 The Office of Management and Budget (OMB) Number must be printed on substitute Form W–3 and on each ply of substitute Form W–2 in the same location as the official IRS forms.

.16 All substitute Forms W–3 must include the instructions that are printed on the same sheet below the official IRS form. .17 The back of substitute Forms W–2 (Copy A) and Form W–3 must be free of all printing. .18 All copies must be clearly legible . Hot wax and cold carbon spots are not permitted for Form W–2 (Copy A). Interleaved carbon should be black and must be of good quality to assure legibility on all copies and to avoid smudging. Fading must be minimized to assure legibility.

.19 Chemical transfer paper is permitted for Form W–2 (Copy A) only if the following standards are met:

Only chemically-backed paper is acceptable for Form W–2 (Copy A). Front and back chemically-treated paper cannot

be processed properly by scanning equipment.

Chemically-transferred images must be black.
Carbon-coated forms are not permitted.

.20 The Government Printing Office (GPO) symbol and the Catalog Number (Cat. No.) must be deleted from substitute Form W–2 (Copy A) and Form W–3.

Section 1B. Specifications for “Laser-Printed” Substitute Forms W–2 (Copy A) and W–3 Filed With the SSA

.01 Specifications for the laser-printed black-and-white Forms W–2 (Copy A) and W–3 are similar to the red-ink forms (Part B, Section 1A) except for the following items and the actual form dimensions (in Exhibits D and E). Exhibits are samples only and must not be downloaded to meet tax obligations.

Forms must be printed on 8.5 x 11-inch single-sheet paper only, not on continuous-feed using a laser printer. There must be two Forms W–2 printed on a page . There must be no horizontal perforations between the two Copies A of Form W–2 on each page.
All forms and data must be printed in nonreflective black ink only.
The data and forms must be programmed to print simultaneously . Forms cannot be produced separately from wage data entries.
The forms must contain no corner register marks.
The forms must not contain any shaded areas including those boxes that are entirely shaded on the red-ink forms.
Form ID Numbers on both Forms W–2 ( 22222 ) and Form W–3 ( 33333 ) must be preprinted in 14-point Arial bold font.
The form numbers (“W–2” and “W–3”) and the tax year (“2002”) on Form W–2 must be in 18-point Arial font. The tax year (“2002”) on Form W–3 must be in 24-point Arial font.
No part of the box titles or the data printed on the forms may touch any of the vertical or horizontal lines, nor should any of the data intermingle with the box titles. The data should be centered in the boxes.
Do not print any information in the margins of the laser-printed forms ( i.e., do not print “DO NOT STAPLE OR FOLD” in the top margin of Form W–3).
The word “Code” must not appear in box 12 on Form W–2 (Copy A).
A 4-digit vendor code must appear in 12-point Arial font under the tax year in place of the Cat. No. on Copy A of Form W–2 and in the bottom right corner of the “For Official Use Only” box at the bottom of Form W–3. Do not display the form producer’s EIN to the left of “Department of the Treasury.” The vendor code will be used to identify the form producer.
Do not print Catalog Numbers (Cat. No.) on the forms (10134D for Form W–2; 10159Y for Form W–3).
Do not print the checkboxes in:
- Box b of Form W–3. The “X” should be programmed to be printed and centered directly below the applicable “Kind of Payer.”
- The “Void” box of Form W–2 (Copy A). The “X” should be programmed to be printed to the right of “Void” because of space limitations.
- Box 13 of Form W–2 (Copy A). The “X” should be programmed to be printed and centered directly below the applicable box title.
Do not print dollar signs. If there are no money amounts being reported, the entire field should be left blank. .02 You must submit samples of your laser-printed substitute forms to the SSA. Only laser-printed, black-and-white substitute Forms W–2 (Copy A) and W–3 for tax year 2002 will be accepted for approval by the SSA. Questions regarding other forms ( i.e., Forms W–2c, W–3c, 1099 series, 1096, etc.) must be directed to the IRS.

2002–31 I.R.B. 257 August 5, 2002

.03 You will be required to send one set of blank and one set of dummy-data, laser-printed substitute Forms W–2 (Copy A) and W–3. Sample data entries should be filled in to the maximum length for each box entry using numeric data or alpha data depending upon the type being entered. Include in your submission the name, telephone number, fax number, and e-mail address of a contact person who can answer questions regarding your sample forms.

.04 To receive approval, you may first contact the SSA at laser.forms@ssa.gov to obtain a template and further instructions in pdf or Excel format. You may also send your 2002 sample, laser-printed substitute forms to:

Social Security Administration Wilkes-Barre Data Operations Center Attn: Data Processing Branch, Room 359 1150 E. Mountain Drive Wilkes-Barre, PA 18702–7997

Send your sample forms via private mail carrier or certified mail in order to verify their receipt. You can expect approval (or disapproval) by the SSA within 30 days of receipt of your sample forms.

.05 The 4-digit vendor code must be preprinted on the sample, laser-printed substitute forms. Forms not containing a vendor code will be rejected and will not be submitted for testing or approval . If you do not have a vendor code, you may contact the National Association of Computerized Tax Processors via e-mail at president@nactp.org .

.06 If you use forms produced by a vendor and have questions concerning approval, do not send the forms to the SSA for approval. Instead, contact the software vendor to obtain a copy of SSA’s dated approval notice supplied to that vendor.