The main difference between a W2 and W4 form is that a W2 is used for employment tax reporting, while a W4 is used for withholding tax information. A W2 form is issued by an employer to an employee and is used to report wages, salaries, and other compensation, as well as taxes withheld from an employee’s pay throughout the year. This form is used to determine how much an employee owes in taxes at the end of the year. On the other hand, a W4 form is issued by an employee to an employer and is used to determine how much income tax an employer should withhold from an employee’s paycheck. The information provided on the W4 form helps the employer calculate the amount of taxes to be withheld from an employee’s paycheck.
The W2 form is also used by the Internal Revenue Service (IRS) to track an employee’s income and taxes throughout the year. The W4 form, on the other hand, is used by an employer to determine the amount of taxes to be withheld from an employee’s paycheck. This form includes information such as marital status, number of dependents, and other factors that can affect the amount of taxes to be withheld. The W4 form is an important document that should be filled out correctly to ensure that the correct amount of taxes is withheld from the employee’s paycheck.