my employer has not included the Dec 2006 which is paid in Jan 2007 in the W2form . when questioned he says that the dec 2006 salary was paid in Jan 2007 and hence not included. This means he works fro dec to Nov only . is he correct?
2007-04-27 05:12:15 · 5 answers · asked by chitrabanu 3 in Business & Finance ➔ Taxes ➔ United States
He is correct, even though you worked the time in 2006 you were not paid the money until 2007, So it becomes part of your 2007 income. Alot of employers work that way and it is normal
2007-04-27 05:24:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If the paycheck was dated 2007, then he's correct, it's 2007 income, even if it was earned for work in 2006. If the check was dated 2006, then it should have been included in the 2006 W-2.
2007-04-27 18:26:58 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
Wages paid in January would not be included on the W-2 for 2006. That is correct.
2007-04-27 13:48:42 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Yes he's correct. W-2 wages are based on the check date only, pay period does not matter. All paychecks dated in 2006 are included on 2006 form W-2.
2007-04-27 12:23:58 · answer #4 · answered by StephanieS 2 · 0⤊ 0⤋
Taxes are "cash basis".
You include wages in the year they're paid, not in the year you earn them.
The rule is: on the day that you have access to the money for personal use, that's the day you report it. If you don't have access to it until January 2007, then you include it in 2007 income.
2007-04-27 15:43:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋