"W" IS For Wages, W-4, and W-2

What is Form W-2?

A form employers must provide to each employee shortly after year-end to report annual income and withholding for the employee's annual tax return.

Wages

Form of income people receive for work they do.

What is Form W-4?

Form that must be completed by an employee before starting a job.

Taxes

Government fees on business and individual income, activities, products or property that people are required to pay.

What is Form W-4 used for?

It is used by the employer to determine the amount of federal and state income tax to withhold for the employee.

Income

Payment that people receive for providing resources in the market.

What does the FICA tax fund?

Social Security and Medicare

Net Pay

Take home pay; amount received after taxes and deductions have been taken out of gross pay

FICA tax

Tax resulting from the Federal Insurance Contributions Act

Gross Pay

The amount people earn in a pay period before any deductions or taxes are taken out.

Who pays FICA taxes?

employee and employer