If I accrue Salary Bonuses for Year End 2006, is that part of their 2006 W2 since I will not pay them till 2007?
2007-01-28 05:17:50 · 3 answers · asked by J.J. G 1 in Business & Finance ➔ Taxes ➔ United States
This one is not for Employees. Its for Officers (Owners). Do they follow the same rule?
2007-01-29 03:17:21 · update #1
No. Income is taxable to the employee in the year it is received by the employee.
2007-01-28 05:24:43 · answer #1 · answered by maxinestringbean 2 · 0⤊ 0⤋
No, only wages and bonuses actually paid in 2006 are reported as such. If they're paid in 2007, that's when the tax is due.
If your business is on the accrual basis, you take the expense for that in 2006 for the business returns and financials but you will show the bonuses on the employees' W2s for 2007. You'll also pay the payroll taxes for those amounts when the bonuses are actually paid.
2007-01-28 05:45:32 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
interior the defense force, you're paid on the 1st and fifteenth, top? Your bonus became surely paid to you on the pay you have been to get carry of on the 1st. in view that January 1st became a trip, your pay became made obtainable early. The taxes paid on the $10k have been taken from the pay with the aid of January 1st besides, no longer paid in 2008.
2016-11-01 12:30:13 · answer #3 · answered by wolter 4 · 0⤊ 0⤋