Major Differences Between W2 And W4 Forms

Both W2 and W4 forms are important for filing tax returns for employees.

Employers fill out the W2 Form to report to the IRS

– Annual wages of employees – Amount of taxes the company withholds from employees – The amount the employer paid for the employee’s health insurance? – The money the employee received in dependent care benefits

Employees fill out the W4 Form to inform

– Basic details – Amount from the income that the employer can withhold from the employee’s paycheck.

The W4 form basically informs the employer to deduct the amount based on an employee’s gender, marital status, dependents, allowances, etc.