The IRS will reconcile the following amounts on Forms 941 and Form W-3 EXCEPT:

The IRS and Social Security Administration (SSA) perform a cross-check between quarterly Forms 941 and the annual Form W-3 transmittal to ensure reporting integrity. This reconciliation includes Medicare wages and tips (Option A), Social Security wages and tips (Option C), and federal income tax withholding (Option D). However, " social security tax withholding " (Option B)—the actual dollar amount withheld from employees—is not part of this specific reconciliation process. Instead, the agencies verify that the taxable wages reported match. They then mathematically verify the taxes owed based on the current rates. If the reported wages on W-3 do not align with the four quarterly 941s, it can trigger a " CAWR " (Combined Annual Wage Reporting) inquiry. Accurate reporting of wage totals is more critical for this initial reconciliation than the individual tax withholding figures, which are audited separately.