Difference between W4 and W2. 

 

The distinction between W-4 and W-2 forms is significant:

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• W-4 Form:

  • This form is filled out by employees when they start a new job or need to make changes to their tax withholdings.

  • The information provided on the W-4, such as marital status, number of dependents, and any additional income or deductions, helps employers determine the amount of federal income tax to withhold from an employee's paycheck.

  • It's directly related to the "Federal Withholding" mentioned in your summary.

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• W-2 Form:

  • The W-2 form is issued by employers to employees at the end of each year.

  • It reports the total amount of wages paid and taxes withheld (including federal income tax, Social Security tax, and Medicare tax) for the year.

  • This form is used by employees to file their annual tax returns.

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