Ask an Accountant

Ask an Accountant

If I pay my employees on January 2, 20X2 for the work week ended December 31, 20X1 can I deduct those wages and related taxes in year 20X1?

Monday, June 29, 2015
No.  Payroll is strictly calendar year and date based.  In the above example, the earnings would not be included in expenses for calendar year 20X1 NOR would the earnings be included in the employees’ W-2 statement for year 20X1.
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