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Form W2 vs W4 - Understanding the Differences

| Last Updated: January 21, 2025
Stephanie

Written by Stephanie Glanville

Stephanie Glanville is the Marketing Manager of TaxBandits. She has several years of experience with IRS tax forms and the funtionality of TaxBandits. With a passion to help business owners better understand their IRS tax forms and filing, she aims to create content that is valuable and informative.

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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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Get Started with TaxBandits, IRS/SSA Authorized e-file provider, and File Form W-2 in just a few simple steps and receive instant IRS/SSA updates. Easily deliver employee copies via postal mail, online access, or an advanced distribution option that offers both (postal mail online access).

TaxBandits provides a bulk filing option for submitting W-2 forms for multiple employees with just one click through a standard CSV template, as well as internal audits to ensure accurate filing of the W-2 forms and other additional features.

See how TaxBandits simplifies the W-2 filing process.

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