Originally Posted by ablbebx
My employer owes me money in back pay checks. I got my W2 from them, and the amount shown on it is the amount that I should have been paid in 2014 - not the amount that I was actually paid. They say that they have been cutting the paychecks for me and paying the taxes on each one. Our accountant told me that the held checks should be considered as a kind of loan to the company, and that it is okay to file my taxes with their W2. They are currently making weekly payments to me to pay back the back pay- I should be caught up in a few months if all goes according to plan - but in the meantime I do not want to file my taxes incorrectly. Any advice?
it is true to say that your employer needs to pay a variety of taxes by withholding them from your paychecks;however, as they held your paychecks for at least one year then after subtracting all expenses, i.e, taxes, they need to pay interest to you since checks held can be considered as a sort of loan , I mean a quasi-loan not formal loan,to the company.anyhow you must report your correct income that should have been paid on your return not the amount actually paid