Accounting, Payroll & Pension Issues/w-2 from post office job

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Expert: - 1/29/2009


Question
My wife(lois)worked for the U.S.P.S until March 3rd of 2008.The federal government pay periods are every two weeks.When she received her W-2 for 2008,it seems they included the last two weeks of December of 2007 in her total wages.We are guessing that because she was paid on the 8th of January of 2008 they are saying these are 2008 wages.I may not seem like much of a deal but it is having an effect on how our taxes come out.She actually worked 8 weeks in 2008 but is shown as having worked 2 more weeks than that.Any chance there may be a mistake

Answer
The earnings are taxable when they are actually paid and not when they are earned.  They are 2008 wages because they were paid in 2008.

They were not included in the 2007 wages on the W-2 so you did not pay income tax on them in 2007 so they have to be included in 2008.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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