You've landed a new gig — congratulations! But before your first payment arrives, you’ll need to complete some tax paperwork. That’s where the confusion often starts: should you fill out Form W-9 or W-2?
Here’s the bottom line: Form W-2 is used by employees whose taxes are automatically withheld from their paychecks, while Form W-9 applies to independent contractors and freelancers who receive their full payment and handle taxes on their own. This difference goes far beyond paperwork. It also affects your tax obligations, legal protections, and how much you may owe when tax season arrives.
Whether you're hiring someone or starting a new position, understanding the difference between W-2 and W-9 forms will help you avoid tax surprises, penalties, and that sinking feeling when you owe money you didn't budget for.
In this guide, we cover everything you need to know about these forms: who uses each one, how taxes work for employees versus contractors, and how to fill them out online.
What is the W-9 Form used for?
Form W-9, officially titled "Request for Taxpayer Identification Number and Certification," is an information form that freelancers, contractors, and self-employed individuals complete when beginning work with a new client or company. It provides your basic taxpayer information, including your Social Security Number or business tax ID, so the client can properly report payments made to you to the IRS.
Companies typically request a W-9 for independent contractors when they expect to pay them $600 or more in a year. At that point, they generally must report those payments on a Form 1099. In short, the purpose of W-9 is to give businesses the information they need to report contractor payments accurately, without sending the form itself to the IRS.
Unlike employees, whose paychecks already reflect payroll deductions and who receive a Form W-2 at year-end, contractors are usually paid the full amount with no taxes withheld. This means you’re responsible for setting aside money and paying your own taxes throughout the year. The information on your W-9 allows the company to prepare the correct 1099 Form at the end of the year, showing how much you earned, so you can report it accurately on your tax return.
What is the W-2 Form used for?
Form W-2, officially called the "Wage and Tax Statement," is an annual document your employer prepares to report your wages and the taxes withheld from your paychecks throughout the year. If you’re an employee who earned a salary or hourly wages, you should receive a W-2 by January 31 following the tax year.
The W-2 shows your total earnings, federal income tax withheld, Social Security and Medicare taxes deducted, and any state or local taxes taken from your pay. You use this information when filing your personal income tax return, as it summarizes your employment income and tax payments for the year.
Unlike Form W-9, which you complete yourself and a client keeps on file, your employer prepares the W-2 and must provide copies to both you and the IRS. This form serves as official confirmation that your employer correctly withheld and paid taxes on your behalf throughout the year.
What is the difference between W-2 and W-9?
The difference between W-2 vs. W-9 goes beyond the forms themselves. It comes down to whether you’re classified as an employee or working independently. Here’s a simple breakdown to show how they compare.
| Criteria | Form W-9 (Contractors) | Form W-2 (Employees) |
| Who uses it | Freelancers, contractors, self-employed professionals | Employees with a job |
| Who fills it out | You fill out a form yourself | Your employer prepares it |
| When you get it | When you start working with a new client | Every January for the previous tax year |
| What it does | Provides your tax information to the client | Reports your earnings and taxes withheld |
| Taxes taken out | None, you pay taxes yourself | Yes, the employer takes taxes from each paycheck |
| Sent to IRS? | No, the client keeps it on file | Yes, the employer files it with the IRS |
| Related forms | You receive Form 1099-NEC in January | You complete Form W-4 to set withholding |
| Tax responsibility | You pay self-employment taxes (about 15.3%) plus income tax | Social Security and Medicare taxes are split between you and your employer (about 7.65% each) |
Employment status: full-time employees vs. independent contractors
If you're an employee, you work under the direction and control of your employer. They determine your work schedule, location, and methods. They provide the necessary tools and training, and they have the authority to terminate the relationship.
If you're a contractor, you operate as an independent entity, basically running your own small business. You decide how to get the work done, you can work for multiple clients at once, you use your own equipment, and you set your own schedule. Clients hire you to deliver specific results rather than to direct your daily activities.
Proper classification is crucial. The IRS evaluates factors related to behavioral control, financial control, and the overall relationship between the worker and the business. If it determines that a worker was misclassified as a contractor instead of an employee, the business may face substantial penalties and become liable for back taxes.
Tax withholding
When you’re a W-2 employee, your employer automatically withholds taxes from each paycheck. This includes federal and state income tax, Social Security (6.2%), and Medicare (1.45%). Your employer also pays an equal share of Social Security and Medicare on top of your wages, though that portion doesn’t appear on your paycheck. These contributions are reported to the Social Security Administration and build toward your future retirement and disability benefits.
When you’re a W-9 contractor, no taxes are withheld from your payments. You receive the full amount upfront, which can feel appealing, but it also means you’re responsible for managing your own taxes. In most cases, you should plan to set aside around 25–30% of your income to cover taxes. This amount includes the full 15.3% for Social Security and Medicare, since you’re paying both the employee and employer portions, as well as your regular income tax. You’ll also need to make quarterly estimated tax payments to the IRS to avoid penalties.
Responsibility for taxes
If you’re an employee, your employer handles most of the tax work for you. They calculate how much tax to withhold, send those payments to the government throughout the year, and take care of the required reporting. You generally just need to file your personal tax return once a year.
If you’re a contractor, you’re responsible for managing your own taxes. This includes tracking your income and business expenses, calculating how much tax you owe, and making quarterly estimated tax payments to the IRS in mid-April, mid-June, mid-September, and mid-January. When tax filing season arrives, you’ll also file additional forms to report your business income and self-employment taxes.
The upside is that contractors can deduct many business expenses, such as a home office, internet costs, supplies, and mileage, which regular employees typically can’t claim.
Can one person have both Form W-2 and Form W-9?
Yes, it’s common for someone to work as both an employee and an independent contractor at the same time. For example, you might have a full-time job with one company while taking on freelance or consulting work on the side.
While there’s no such thing as a “W-9 employee” since Form W-9 applies only to contractors, you can legally operate in both roles. In that case, you function as an employee for one job and as an independent contractor for another.
At tax time, you’ll receive a Form W-2 from your employer and Form 1099 documents from any clients who paid you $600 or more during the year. You’ll report your employee wages and freelance income separately on your tax return. Keeping clear records of your income and saving receipts for business expenses is essential. Many people in this situation also choose to work with a tax professional to make sure they report everything correctly and don’t miss eligible deductions.
Other common tax forms for employees and contractors
If you’re an employee:
Form W-4: You fill out this form when you start a job or update your tax situation. It tells your employer how much federal income tax to withhold from each paycheck.
Form W-2: Your employer prepares this form at the end of the year. It summarizes your total earnings and the taxes withheld, and you use it to file your tax return.
If you’re a contractor:
Form W-9: You complete this form when you start working with a new client. It provides your tax information so the client can report payments correctly.
Form 1099-NEC: Your client sends you this form in January. It shows how much they paid you during the year and is used when filing your taxes.
Schedule C (Form 1040): You fill out this form when filing your tax return to report your business income and deductible expenses.
Schedule SE: You complete this form to calculate your self-employment taxes, including Social Security and Medicare.
Form 1040-ES: You use this form to make quarterly estimated tax payments to the IRS throughout the year.
W-2 vs. W-4 vs. W-9
These three IRS forms often get mixed up, but they serve very different roles depending on how you work.
Form W-4 applies to employees and controls future paychecks. You fill it out to tell your employer how much federal income tax to withhold.
Form W-2 also applies to employees, but it looks backward. Your employer issues it at year-end to report what you earned and how much tax was withheld.
Form W-9 applies only to contractors. You provide it to clients so they have your tax information and can issue a 1099 if required.
The simple way to remember: W-4 controls future paychecks (employees only), W-2 reports last year's earnings (employees only), and W-9 provides your info to clients (contractors only).
How to fill out tax forms online
Whether you need Form W-9, W-4, or any other tax document, PDF Guru offers a complete library of ready-to-use forms. Instead of downloading PDFs and printing them out, you can complete everything directly in your browser.
Simply find the form you need, fill in the required fields, and download the completed document. For contractors who regularly submit W-9 forms to new clients, or for employers who provide W-4 forms to new hires, having immediate access to up-to-date forms helps streamline tax reporting and maintain compliance with IRS requirements.
Final thoughts
Understanding the differences between forms like the W-2 and W-9 isn’t just about compliance. It affects how you budget, plan for taxes, and protect yourself legally. As an employee, your employer handles most tax-related responsibilities. As a contractor, you gain more flexibility but also take on greater responsibility.
When in doubt, it’s important to clarify your classification before you begin working. The IRS takes worker classification seriously, and mistakes can be costly for both workers and businesses.
Whether you need a W-9, W-2, or another tax form, PDF Guru makes the process simple. Our platform offers fillable W-9 and W-2 forms, along with hundreds of other government and business forms. Find what you need, complete it online, and download it in minutes, all in one place.
