W4 and W2 – what is the difference?
- W-4 Form: Employee’s Withholding Certificate. This form is filled out by an employee when they start a new job or need to update their tax withholding. The W-4 tells your employer how much federal income tax to withhold from each of your paychecks.
- W-2 Form: Wage and Tax Statement. This form is prepared by an employer and sent to employees at the end of the tax year. The W-2 summarizes your total annual wages and the amount of federal, state, and other taxes that were withheld.
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