Explain the Difference Between Form W-2 and W-4 Including Why

question 24

Essay

Explain the difference between Form W-2 and W-4 including why each form is needed by employers to complete payroll activities.

---

Definitions:

Compounded Monthly

Interest that is calculated and added to the account balance every month.

Periodic Interest Rate

The interest rate charged or paid over a specific period of time, often monthly, quarterly, or annually.

Conditional Sale Contracts

Agreements where the sale of goods or property is conditional upon certain terms, typically the buyer making payments over a period, with the title remaining with the seller until conditions are met.

Purchase Price

The amount of money paid to acquire a good, service, or asset.