I worked the last week of 2010, but when I was paid on 01/04/11 they used the new tax tables for 2011.?

When I received my pay for the week or 12/27 ( weekly pay) on 01/04/2011, my payment was based on the new tax tables for 2011. why is my actual work was for 2010? The accountant said that since the check was cut in 2011, they could use the 2011 tax tables for the last week of 2010.

Payroll is done on the Cash Basis, meaning it is posted in the period it is actually paid, not when the work was performed. Correspondingly, the tax tables used are also for the period in which it is paid, not performed.

Your pay is counted as income in the year it was received, not the year it was earned. since you received your pay in 2011 it is taxable for the 2011 tax year.

The accountant is correct.

The income is taxed based on when you get it, not when you did the work.

I worked the last week of 2010, but when I was paid on 01/04/11 they used the new tax tables for 2011.?

You can leave a response, or trackback from your own site.

One Response to “I worked the last week of 2010, but when I was paid on 01/04/11 they used the new tax tables for 2011.?”

  1. midteacher8 says:

    Cash is cash. It can be neither strict nor lax, so, whilst an adjective such as "hard" or "cold" can be attached, "strict" (strictly speaking) cannot.
    The sentence is idiomatic. You are correct in suggesting that it is badly constructed. It means "We deal strictly on a cash basis".
    You put up a good case and I'm surprised that your teacher didn't explain the reason for refusing to accept it.

Leave a Reply

Powered by WordPress | Designed by: BlueHost Coupon | Best CD Rates, Shared Hosting and Singlehop review