Form W2 vs W4 - Understanding the Differences
Charles Hardy | Last Updated: April 01, 2025
Staying tax compliant is the most difficult job for employers as the IRS has thousands of tax forms with different purposes.
When it comes to wage tax return filing, w-2 and w-4 are essential tax forms. Each form serves a different purpose, addressing various aspects of tax compliance.
This article explores the key differences between Form W-2 and Form W-4 to clarify their filing requirements.
Form W2 vs W4: What's the difference?
Form W-2 is used by employers to report the wages and income taxes withheld from employees' paychecks during the year. In contrast, Form W-4 is generally filled out by every new employee to indicate the amount of Federal tax their employer should withhold from their wages during the year.
This table outlines the main differences between Form W-2 and Form W-4.
| Criteria | Form W-2 | Form W-4 |
|---|---|---|
| Purpose |
Form W-2 is used by employers to report the employee’s wages and tax withheld from the employee's paycheck during the year. E-file W-2 with TaxBandits |
Employers use Form W-4 to collect information about the employee's personal information to withhold correct the employee's wages during the year. |
| Who Uses it? | Employers should file Form W-2. | Employees fill out form W-4. |
| Filing Responsibility | Employers file W-2s with the SSA and distribute copies to employees. | Form W-4 is not filed with the IRS/SSA; it is an internal document that records employee tax information. |
| Filing Deadline | The deadline is January 31 for filing with the SSA and distributing copies to employees. | Form W-4 has no specific deadline. Employers must gather Form W-4 when hiring new employees or updating their withholding allowances. |
| Information to report | Name, address, wages, Social Security and Medicare taxes withheld, as well as state and local taxes withheld. | Name, address, SSN, number of dependents, marital status, and additional withholding amounts specified by the employee. |
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