Bonus paid in 2009, not reported until 2010, is this legal?

[eileenkeeney]

What is the name of your state (only U.S. law)? Texas

I was paid a bonus in November of 2010.
Taxes were taken out (33%).

A company (I will call them company A) was contracted by my Employer to handle employee relocation.
Company A deposited my bonus (and other move allowances) into my bank account in November 2009.
However, they did not report the Bonus paid to my employer until February of 2010.
As a result the amount is not reflected on my 2009 w2 form.
It will show up on my 2010 w2.

Is this legal?

Consequences to me are
- I can not get my refund on the taxes paid until 2011
- It may prevent me from qualifying for the federal tax credit on a house I am about to buy.

I have asked both Company A, and my Employer Payroll department, if they can fix the mistake. I have not heard back.

Is it Legal for them to do this to me?

 

[LdiJ]

What is the name of your state (only U.S. law)? Texas

I was paid a bonus in November of 2010.
Taxes were taken out (33%).

A company (I will call them company A) was contracted by my Employer to handle employee relocation.
Company A deposited my bonus (and other move allowances) into my bank account in November 2009.
However, they did not report the Bonus paid to my employer until February of 2010.
As a result the amount is not reflected on my 2009 w2 form.
It will show up on my 2010 w2.

Is this legal?

Consequences to me are
- I can not get my refund on the taxes paid until 2011
- It may prevent me from qualifying for the federal tax credit on a house I am about to buy.

I have asked both Company A, and my Employer Payroll department, if they can fix the mistake. I have not heard back.

Is it Legal for them to do this to me?

It certainly does not sound proper to me, but I would have to know the company's explanation of why they are doing it that way, to be certain.

 

[eileenkeeney]

I think it was just a mistake

I believe it was a mistake, made by the company that handled the moves.
Everyone else (that I know of) had it show up on their 2009 W2.

 

[LdiJ]

I believe it was a mistake, made by the company that handled the moves.
Everyone else (that I know of) had it show up on their 2009 W2.

It sounds to me like company A did not bill your company for the service until February 2010.

Your employer could correct it, but it would be a major project to do so, costing your employer some major bucks. They would have to correct not only your W2, but all of their 4th quarter and year end payroll tax returns and most likely their corporate tax return as well.

It could definitely cause you some problems at work if you were to try to force them to do that.

What about amending 2009 to take the federal tax credit for the house, rather than putting it on 2010?