Vision Payroll

Employers often question whether employees who work in one year and are paid in the next year should have the wages reported in the year the work was performed or the year the wages were paid. Generally, wages are reported based on payment date. For example, if the pay period ends on December 27, 2008 and the wages are paid on Wednesday, December 31, 2008, those wages are included on the fourth quarter 2008 Form 941 (or equivalent) and reported to the employee on the 2008 Form W-2. Alternatively, if the pay period ends on December 27, 2008 and the wages are paid on Friday, January 2, 2009, those wages are included on the first quarter 2009 Form 941 (or equivalent) and reported to the employee on the 2009 Form W-2. Contact Vision Payroll if you have any questions on which year employees’ pay should be reported.