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 following time table will help you determine how many years tax records must be kept: Three yearsâ Anyone owing additional taxes must keep their records for three years. If you have filed a claim for a credit or tax refund after you have filed your return you must keep records for three years from the date you filed your return or the date you paid taxes. Four yearsâ Employment tax records must be kept for a minimum of four years from the date the tax was due or paid. Six years-If you have filed a tax return the did not include reportable income (more than 25% of the gross income reported) you must keep your tax records for six years. Seven yearsâ When a claim has been filed for a loss from securities or bad debt, all records must be kept for seven years.