If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. No further action is necessary. Example. In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012.or the year, the employeeâs regular pay was $200, and the employee deferred $20 of the pay into her employerâs NQDC plan. The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested.
If you file a claim for credit or refund after filing your return, keep records for 3 years from the filing of the original return. If you file a claim for a loss due to bad debt deduction or worthless securities, keep records for 7 years. Keep all employment records for at least 4 years after the tax is due or paid.
You should keep tax returns for more than three years in the following situations: 1  If you omit more than 25% of your gross income on your tax returns, you should keep the return for six years. 2  If you claimed loss for worthless securities or bad debt deductions, you should be save the tax return for seven years.