A W-4 is the form you give your employer to set tax withholding, and a W-2 is the form your employer gives you showing your yearly wages and taxes withheld.
W-4
The W-4 (Employee’s Withholding Certificate) is a form you complete for your employer to set how much federal income tax is withheld from your paychecks. You update it when your situation changes.
W-2
The W-2 (Wage and Tax Statement) is a form your employer gives you by January 31 showing your wages and taxes withheld for the previous year. You use it to file your tax return.
Timing
W-4: when you start a job or change. W-2: once a year.
Who sends it
You fill out the W-4. The employer issues the W-2, and also sends a copy to the Social Security Administration.
Contractors
Independent contractors get a 1099-NEC and complete a W-9.
Missing W-2
Contact your employer or the IRS.
W-4 in detail
Form W-4, the Employee’s Withholding Certificate, is filled out by you when you start a job or when your situation changes. It tells your employer how much federal income tax to withhold from each paycheck. It asks for your filing status, whether you have multiple jobs, dependents, other income, deductions and extra withholding. The IRS redesigned it in 2020, removing allowances.
W-2 in detail
Form W-2, the Wage and Tax Statement, is filled out by your employer after the year ends. It reports your total wages, federal, Social Security and Medicare taxes withheld, state and local taxes, and some benefits and retirement contributions for the year. You need it to file your tax return.
Timing
You submit a W-4 at the start of employment and can update it at any time. Employers must send W-2s to employees and the Social Security Administration by January 31 each year. Copies B, C and 2 go to the employee.
Who sends it
- W-4: you give it to your employer, who does not send it to the IRS in most cases.
- W-2: employer sends to you, the SSA and in many cases to state tax agencies.
Contractors
Independent contractors fill out Form W-9, and the business that pays them $600 or more in a year sends Form 1099-NEC. Contractors pay their own self-employment tax, which is 15.3% on net earnings, including Social Security and Medicare.
Missing W-2
If you do not receive your W-2 by mid-February, contact your employer first. If that fails, call the IRS at 800-829-1040 after February 23, with your employer details, and an estimate of wages and withholding. You can use Form 4852 as a substitute and file by the deadline. You can also see wage and income information in your IRS online account transcript.
Tips
- Use the IRS Tax Withholding Estimator to complete the W-4 accurately, especially if you have two jobs, big side income or changes in life such as marriage or a new child.
- Check your W-2 for errors in name, Social Security number and wages.
- A W-4 with too little withholding can lead to a tax bill and penalties, while too much means a large refund and smaller paychecks.
Where each form fits in the tax year
Form W-4 is filled out by an employee and given to the employer so that the right amount of federal income tax is withheld from each paycheck. The current form has five steps and no longer uses allowances, since the 2020 redesign. Form W-2 is the Wage and Tax Statement that employers must send to employees and the Social Security Administration by January 31. It reports total wages in Box 1, federal tax withheld in Box 2, and Social Security and Medicare wages and taxes in Boxes 3 to 6. You use the W-2 figures to file your tax return. If you do not receive it by mid-February, contact your employer, and if that fails, call the IRS at 800-829-1040. Independent contractors receive Form 1099-NEC instead of a W-2 when paid 600 USD or more.
Based on data from the IRS
