Accounting, Payroll & Pension Issues/NSF Payroll Checks

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Expert: - 7/28/2009


Question
I have a client that issued a payroll check in December 2007.  It came back NSF.  They reissued the check in January 2008.  Does this count for wages in 2007 since that is when it was originally issued, or 2008 since that is the one that actually cleared?

Answer
It would count as wages when the money was actually received by the recipient.

however, if all the tax forms and the W-2 reflect 2007 it would leave it alone because for one paycheck it would not be worth redoing all the forms and the recipient has already filed taxes for 2007.

So if I were doing it and all the paperwork was done in 2007 I would leave it in 2007.

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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