Back pay


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?


Comments for Back pay

Click here to add your own comments

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
"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."


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.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.