Back pay


(Georgia)

In an audit it was discovered that one of our employees was short paid thru out several years. In reimbursing this person will it be added with his regular income on the W-2 and also how will this have to be reported to the IRS?

Thanks,
Clerk

Comments for Back pay

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Dec 14, 2013
Back pay . . .
by: Anonymous in NC

It would be paid and reported to IRS on the W-2 form as Misc. or other income for a listed range of years. The employee as income tax filer could amend his/her federal return up to three years and NC state return up to 5 years. Hope this helps.

Dec 16, 2013
back pay and the IRS
by: Sandi

http://www.irs.gov/publications/p957/ar02.html
"The Internal Revenue Service (IRS) and the SSA consider back pay awards to be wages. However, for income tax purposes, the IRS treats all back pay as wages in the year paid.
Employers should use Form W-2, Wage and Tax Statement, or electronic wage reports to report back pay as wages in the year they actually pay the employee."

Prayers

Dec 16, 2013
back pay
by: Anonymous

In reading the comments would it be the same if the person was issued a 1099 in the past? Thank you.

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