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What is the difference between a W-2 and a W-4 form?

Nick S - 2007-08-06 20:19:22 - United States

In the past I have only had to fill out w-2 forms. Now, I am switching jobs and they require that I only do a w-4 form. Can someone please tell me what the difference is? I am in Minnesota and also in sales (not 100% commission) if that makes a difference.

Best Answer:

W-4 form is what you fill out to help the payroll dept figure out how much federal and state withholdings to take out of your paycheck. W-2 is what you get at year end that has all of the paycheck information for the entire year.

Answers:

The W-4 form is the one you fill out and turn into your employer that states how many deductions you want taken out of your check. The W-2 form is the one you receive from your employer after the end of the year that states in detail how much was taken out for each deduction. A copy of that form must be turned into the IRS and the State you live in when you file your taxes. Apparently your employer is not taking out any taxes and it will fall on you at the end of the year. I'm not sure if your employer is within his legal rights if you are getting a paycheck plus commission. To be sure, I suggest you go on line or call the IRS and your state tax board for the exact information. Nobody needs to get an unexpected tax surprise at the end of the year

Sorry, but unless you're the payroll clerk, you never filled out a Form W-2. Your employer sends you a Form W-2 at the end of the year. It lists your total income and all deductions. You use it to prepare your tax return and if you file a paper return you attach a copy to the return. When you start a new job you file a Form W-4 with your employer to tell them how much to withhold from your pay each pay period. I've been working for nearly 40 years now and it's always been Form W-4 when you start a new job.

A W-2 form is what an employee receives at the end of each year giving a breakdown of what they earned and what was withheld and sent in to various taxing entities. A W-4 is the form you fill out when you go to work that sets the amount of withholding that is taken out for federal and state income taxes. You should file a W-4 whenever your circumstances change; marriage, child, divorce, etc; and at the beginning of each year.

You've never had to fill out a W-2 form unless you were an employer. That's the form you get at the end of the year that shows your income and deductions for the year. The form you fill out when you start employment is a W-4. And these names have been there for decades, didn't just change.

W-4 form is what you fill out to help the payroll dept figure out how much federal and state withholdings to take out of your paycheck. W-2 is what you get at year end that has all of the paycheck information for the entire year.

W2 is issued by your employer and W4 is what you fill out to tell your Human Resources how many exemption you would like to declare.