If your LLC is on the cash-basis of accounting, it would report only the income actually received during the tax year. This should agree with the Form 1099-NEC sent by your client.
The LLC expenses would likewise include only those wages actually paid during the tax year. Any reporting from the payroll service should reflect this.
As a cash-basis individual taxpayer, you report income when it is received. The W-2 from the LLC should match the payroll deposits you received during the tax year.
The net of this timing difference will be more net income (income less wages) for the LLC in the current tax year. Next year, you'll have more wages and less net income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
