The W-2 would also reflect any additional deductions, for instance, contributions to retirement plans. It includes their tips and bonuses, federal tax, gross pay, also including the Social Security and Medicare taxes. These could be the employee’s number of dependents, their marital status, and so on.įorm W-2: This document provides information about the employee’s earnings.
There are lots of factors that determine the amount to be withheld. Why Should You File These Forms?įorm W-4: The IRS form W-4 informs employees how much income should be withheld from their paychecks.
This is irrespective of whether or not the company collected any income, medicare tax, or Social Security from them. The organizations need to be mindful of submitting the W-2 forms for each of its employees who have been paid over $600. Additionally, employers need to provide their employees with their W-2 forms by January 31. Who Fills out These Forms?įorm W-4: Every employee on the company's payroll must fill out a W-4 within the first month of employment.įorm W-2: Every year, employers are required to send the IRS a W-2 form for each employee.
Click here for free trial W-2 vs W-4: What You Need to Knowįor your convenience, here are the main components of the W-2 and W-4 forms.
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