In this Article:
What is Form W-2?
A Form W-2 reports an employees earnings for the year and offers the amount of federal, state, and other taxes withheld from your paychecks. It's used to file federal and state taxes and also contains important information such as an employer identification number, social security number, and other personal information. As an employee, the accuracy of the information on your Form W-2 is very important when preparing to file your tax return.
Form W-2s are generated by the employer or payroll administrator. If you used Toast Payroll during a tax year, Toast generates Form W-2s unless a separate payroll provider was used later in that year. Form W-2s will be available for employers to distribute to employees on January 19, 2026. For more information on Form W-2s, check out these resources:
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What is Form W-4?
The Form W-4 is completed by an employee to indicate their tax situation. It informs Toast Payroll of the amount of taxes to withhold from an employee's check. To learn more about federal and state income tax calculations, you can visit Toast Payroll: Federal Income Tax & State Income Tax Calculations.
As an employee, you may access your Form W-4 by navigating to My Profile > Documents & Forms > Tax Forms tab. At the bottom, select either the hyperlinked federal Form W-4 or the Fill Out State W-4 button and make the appropriate changes. These will take effect on the next payroll. Toast Payroll: Update Form W-4 Information and Toast Payroll: State Form W-4 FAQ have more information.
Employers, managers, and HR+ users are not allowed to edit an employee's Form W-4. Only the employee themselves can edit their Form W-4.
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What is Form W-9?
The Form W-9 is used to determine an independent contractor's tax filings. It is similar to a Form W-4 for employees, but it is completed by an independent contractor. This information determines paycheck amounts and the amount of withholdings for the contractor's taxes. The employee will submit this form to their employer during their onboarding process into Toast Payroll.
Locate the Form W-9 by navigating to the contractor's profile > Taxes & Documents tab > Tax Forms. The Form W-9 contains information such as an individual name, whether or not they are operating a business, and their tax classification. One may have to create or request a taxpayer identification number in order to fill out the form.
Keep in mind that Toast Payroll does not offer tax filing services for independent contractors. They may still be paid through Toast Payroll, but they are responsible for their own year-end filings.
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How Forms W-2, W-4, and W-9 Are Different
An employee uses a Form W-4 to inform the company’s payroll department how much tax to withhold from their earned income. Then at the end of the year, a Form W-2 will report year-end earnings. The employer provides the W-2 to the employee. This includes information on how much was taken out of the employee’s gross pay for deductions such as state and local taxes.
When comparing the W-4 vs W-9 forms, the difference is that an employee fills out a W-4 while an independent contractor fills out a W-9. Contractors are responsible for their own tax filings.
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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice.
