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What Is The Difference Between W2 And W4?

by Altaf Shaikh
Difference Between W2 And W4

Are you finding the difference between W2 and W4 forms then I am here to help you? Today you will come to know what are these two IRS forms. If you are a new employee and eager to know about is there a difference between w2 and w4? Then you are very clever and wisely willing to know about the taxes. All the important points that I am going to cover will be helpful for you. So stay here till last and read about the difference between w2 and w4 without missing any information.

What’s Major Difference Between W2 And W4 Form?

The difference between w2 and w4 in the IRS tax forms will be simple to understand. However, their names are likely the same but they have major differences. They are individually separate forms that are related to the tax works for the employers.

The W2 forms are a record of the full-year tax. Whereas W4 forms are documents with the amount of the tax that is withheld from the paycheck of the employee. Let us see more about each form and their differences further.

Difference Between W4 And W2 Tax Form

Here I have described the W2 and W4 forms individually. You will come to know what is the difference between w2 and w4 form certificates.

  1. What Is A W4 Form?

The W4 form is the individual employee certificate of withheld allowance. This certificate tells us about the income tax that is holded by us. The amount of the tax mentioned in it is depending upon our salary. You will need to fill up this form with all correct information and it is needed to be filled on the first day of employment itself.

This form has to be edited and updated with the changes that have been occurred in the year. You have to update your personal as well as financial information in this form. After you fill up this tax form you will be able to calculate the amount of tax that is going to be deducted in taxation from your payroll.

  1. What Is A W2 Form?

The W2 form is the statement of the salary and tax of the employee. This form needs to be filed every year by the employers. The company will mention your net salary and compensations along with any kind of deductions from the income. In this employers also describe the Healthcare taxes, child care, and savings for retirement, etc. Company files this form for every of their employee.

You will get help with the W2 forms for filing your tax returns every year. It can be generated and filed digitally. You can mail this form to the Social Security Administration with your respective state and local governments. There are various software available and may vary from company to company that helps you with filing the W2 forms.

Difference Between W-2 vs W-4 IRS Forms

Below are some of the basic differences between IRS W2 vs W4 forms so that you will get complete information about them. Have a look at them.

  1. What Is the Reason For The W4 and W2 Forms?

W2 Form – 

It is the form that indicates the income and earnings of the employee. This also includes bonuses, tips, miscellaneous incomes along with insurances, and healthcare claims. It also has retiral funds and saving plans to be mentioned.

W4 Form –

The reason for the W4 form is to get knowledge about the amount that needs to be withheld from the employee’s paycheck and filed to the IRS. The amounts also vary because of the factors such as marital status, the number of family members, other if any.

  1. Who Requires To Fill These Forms?

W2 Form –

Every employer requires to fill these forms for their employees separately. They need to fill these forms every year in the end.

These forms need to be submitted even if there is no income or details about the insurances and claims from the employees to whom a salary of $600 or more is paid.

W4 Form –

All employees need to submit the W4 forms on a payroll basis. They need to mention all the necessary details in the W4 forms.

  1. What Is Time Of Filing Them?

W2 Form –

This time for filing the W2 forms is at the end of the year. Employers have to submit a copy of these forms to employees by Jan 31st.

W4 Form –

The W4 forms have to be submitted by individual employees and filled up within the first month after joining the Job.

  1. How To Fill The Forms?

W2 Form –

Employers can be using different software platforms to fill up these forms. The forms can be completed and mailed digitally. However, the payments of the taxes need to be done separately.

W4 Form –

The W4 form needs to be submitted in the first month after you join the Job. However, the things in it can be edited more than once in the year. You will have to mention the changes that are occurred in the year.

If you have read till here, then have must also like to know about some of the other forms related to taxation.

Difference Between W2 Vs W3 Vs W4 IRS Forms

There is no major difference between w2 w3 and w4 forms as they are somewhat similar. However, let see the difference in these forms.

W2 Form –

The W2 form is to be filled by the employers and also employees in some cases.

W3 Form –

It is the form that helps us to summarize and transmit the W2 forms to the Social Security Administration (SSA).

W4 Form –

The employees have to fill up the W4 form and need to describe their job and financial status regarding numerous jobs they have completed.

Difference Between W2 Vs W4 Vs W9 IRS Forms

There is one more form that you must be thinking of. So let us see the difference between w2 w4 and w9.

W2 Form – 

The W2 forms are given by the employers to their employees.

W4 Form –

The W4 form is specially designed for the persons who are employed or working as employees in an organization.

W9 Form –

Although the W9 form is for the people who are having an individual business, or the persons who are vendors, freelancers, etc.

For example, the W9 form is needed to be filled by freelancers for their clients.

We saw about the  Difference Between W4 And W9 Forms and W2 forms let us see one more important form below.

Difference Between W2 Vs W4 Vs 1099 Forms

The difference between W2 And 1099 and W4 is as follows.

The W2 and W4 are the regular forms provided and filled by the employees. While the 1099 forms are filled or received by the individual contractors.

Read Also: DW Meaning: What Does DW Mean?

FAQ

What Is A W-4 Form Used For?

The reason for the W4 form is used for getting an idea about the amount that needs to be withheld from the employee’s paycheck and filed to the IRS. This describes telling the employers about the employee’s amount of the income and deductions, multiple jobs, and its status.

Do I Need A W2 Or W4?

Whether you are W2 or W4 you will need them both as an employer as well as an employee. This will help you to know about the status of your tax filing.

Who Uses A W4 Form?

The W4 form is required to be filled by the persons who are having a salary of more than $600. However, it is filled by the employees within the first month of their job.

What Should I Claim On My W4?

You should claim the allowances on your W4, this will help you in reducing the income tax. Also, it is necessary that you should fill up the W4 and update your information related to marital status, earned wages, number of dependants in the family, etc.

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Conclusion

In this article, we read about the difference between W2 and W4.  We discussed reason, eligibility, time, and how to fill out a w4 and w2 forms on this topic. Most of the points that I covered were related to the tax and their filing with the help of the W 2 and W 4 forms. Now you are knowing about the major and minor differences between W2 and W4.

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