Form W2 vs W9 - Understanding the Differences

Stephanie Glanville | Last Updated: December 24, 2024

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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When it comes to tax reporting, Forms W-2 and W-9 serve distinct purposes and are used in different scenarios. Understanding the differences between these forms is crucial for accurate tax filings, whether you’re an employer, employee, or contractor.

In this guide, we’ll break down the key differences between Form W-2 and Form W-9 to help you navigate the requirements and ensure compliance with IRS regulations.

Form W2 vs W9: What are the differences?

Form W-2 generally summarizes employee's annual wages and the taxes withheld from their paychecks throughout the year. In contrast, Form W-9 is utilized to collect essential information from independent contractors or entities hired to perform services for an organization.

Check the below table to understand the key differences between W-2 and W-9 in detail.

Criteria	Form W-2	Form W-9
Purpose	Form W-2 is used by employers to report employee wages and tax withholdings to the IRS and employees. E-file W-2 with TaxBandits	Payers use Form W-9 to collect taxpayer identification information from independent contractors or vendors to file 1099 accurately. Request W-9 from your Vendors Now
Who Uses it?	Employers hire the individuals as full-time employees for the business.	Businesses that hire independent contractors or freelancers.
Filing Responsibility	Employers file Form W-2 with the SSA and distribute copies to employees.	Form W-9 is not filed with the IRS; it is retained by the payer for record-keeping purposes.
Filing Deadline	January 31 of each year to file with the IRS and distribute the copies to employees. Click here to learn more about the W-2 deadlines.	Form W-9 has no filing deadline; businesses should collect it when hiring an independent contractor or filing Form 1099. Click here to learn more about the 1099 deadlines.
Information to report	Wages, federal, state, and local tax withholding and the FICA tax (Social Security, Medicare) were withheld.	Name, business name, address, TIN, business entity type, and any tax reporting exemptions.
Tax Withholding	Involves federal & State income tax, Social Security, and Medicare taxes withheld.	Involves backup withholding (if not provided correct TIN to payer)

Difference between employees and contractors

Employees are individuals who have a formal and often long-term relationship with their employer. They are eligible for company benefits, including health insurance, retirement plans, and paid time off.

On the other hand, contractors, often called independent contractors or freelancers, are individuals or businesses hired on a temporary or project-specific basis. They are not considered regular employees. Independent contractors do not receive employee benefits from the businesses that hire them.

Form W-2 and W-9 Process Made Easy with TaxBandits!

Let TaxBandits simplify the process for you! TaxBandits supports all the required forms, including W-2, W-9, and
1099 Forms. Understanding your responsibilities with these forms is essential to avoid penalties fully.

TaxBandits offers built-in features such as TIN matching and internal audit checks, which ensure the accuracy of your submissions, reducing the likelihood of errors that could trigger IRS inquiries. Distribute W-2 or 1099 copies to your employees or recipients on time.