W2 question

[ainsworthk]

I worked in Dec 2024, however, I was paid in January 2025 (checked dated and received).  My understanding is that W2s are cash basis and thus are to be issued when payment is made - in my case January 2025.  My employer issued a 2024 W2. 
Since this was issued in error, how is this reversed?   There was only SS and medicare deducted.

[LindaS5247]

You could ask your employer to issue a corrected Form W-2.  You are correct that we (taxpayers) are on a cash basis. If you were paid in 2025 for work done in 2024, the income should be reported in 2025 and you should receive a W-2 for this income for the tax year 2025.

[ainsworthk]

Would the corrected 2024 W2 then back out the social security and medicare that my employer deducted and submitted by error?     Since in this case they shouldn't have even issued the 2024 W2.

[ainsworthk]

But paycheck was dated in January 2025 - my understanding is that W2s are issued on a cash basis, thus even though I worked in December, BECAUSE my paycheck was DATED and received in  January 2025, then no W2 for 2024 should have been issued.  Am I understanding the IRS website correctly on this point?

My question then goes back to, since a W2 was incorrectly issued when it shouldn't have been, what steps are taken to reverse the reporting of the social security and medicare to the government?

[DianeW777]

Yes, you are understanding correctly. You are not required to report income until you actually receive it. It is up to your employer to submit a corrected W-2. It's important that you have proof such as a copy of the check or check stub that shows the payment date. If the employer does not send the correction to the IRS then it will be up to you to prove it was issued in 2025, once the IRS indicates your forgot a W-2.  This can take up to two years.

The IRS term is constructive receipt. 

Constructive receipt.  IRS Publication 538

Income is constructively received when an amount is credited to your account or made available to you without restriction. You do not need to have possession of it. If you authorize someone to be your agent and receive income for you, you are considered to have received it when your agent receives it. Income is not constructively received if your control of its receipt is subject to substantial restrictions or limitations.

Example.

You are a calendar year taxpayer. Your bank credited, and made available, interest to your bank account in December 2021. You did not withdraw it or enter it into your books until 2022. You must include the amount in gross income for 2021, the year you constructively received the interest income.

If the employer will not send a corrected W-2 (W-2c), you can file your return without the W-2, being ready to prove you didn't receive it and it was dated in 2025.  Or file it with your tax return for 2024.

@ainsworthk