I work in new and used car sales. We receive W2s each year, and our earnings are "washed out" after each month end. Throughout the month we also receive a $300 weekly draw. For December I received a $1000 bonus and 4 $300 draws (besides my "wash out" check the first week of December). None of these draws/bonuses ever have taxes taken out when they are given to you. The taxes come out in the "wash" which, again, is the first week of the following month.
Since I have a child in college I needed accurate year end income figures for FAFSA purposes. Since there are no deductions on these draw checks etc, the last paystub I had with any YTD info was the first week of December. When I inquired with accounting, I was told that the $1000 and 3 of the 4 draws of $300 are being put on 2010 income...hmmmm.
Since these were paid in 2009 shouldn't this income be included for 2009? Is their accounting practice illegal? Or is there some sort of provision that allows for sales pay to be handled this way? I have always been told that income MUST be accounted for on a W2 in the year in which it was paid. Their accounting practice sounds fishy, or maybe they're just lazy. Regardless I'd like to know what's true. I'm concerned. Thanks.