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.
The IRS recommends keeping records for â3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.â You should also keep records for three years if you owe additional tax and the situations described in sections 3 and 4 below donât apply.f you file a return and claim a loss from worthless securities or take a deduction for a bad debt, you should keep your income tax papers for seven years.