EMPLOYER’S GUIDE - Social Security Administration
IRS: Treats all back pay as wages in the year the award is paid for taxation purposes. SSA: Credits a back pay award, if: Not under a statute, as wages when paid; or. Under a statute, as wages in the year(s) it should have been paid. However, in order to credit wages paid under a statute correctly, the employee or the employer must notify SSA. ................
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