I just got my pay check on Jan 4, 2008 for working through 12/30/2007. Pay period ended on 12/30. But I received the check on 1/04/08. Is this income for 2008 or 2007?
I think it should be 2007. Please advise. I maxed out my FICA and noticed I got charged the 2008 rates on othe decuctions. This is a significant amount of money. Any advise on having it recalculated?

If the pay stub says pay period ending l2/30 then it is for 07.

It's the effective pay period not the pay date. If you look at the stub, the Year To Date figures have not reset.

Thank your for your response.

That is one of the problems, they started with this as the new year to date amount.

I agree the income was earned in 2007 not 2008. But the company doesn't agree. I just wondered how the government viewed this.

The government goes by what was reported on the W2. If the company wants to consider income by when it was paid rather than the effective dates, they can. Nothing illegal about it. The thing is they need to be consistent. How long have you worked for them? Did they do the same thing last year?

Sorry, Scott! This time you are in error.

Even though the work period ended in December 2007, you get taxed on when you RECEIVED the money, which is clearly in January 2008.

Yes, for your 2007 tax return you report wages you received in 2007. If an employer issues a check on 12/31/07 but your receive it in 2008, this is 2007 income.

Agreed!

Whoops.I just checked my p/t job paycheck and sure enough the check issues 1/3 which covered the period to 12/27 restarted the YTD.

Okay!