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Year-End Alert – Erroneously Paid Wages

As Calendar Year 2022 draws to a close, Adams Keegan would like to begin a review of several items that may be pertinent to your payroll process. 

Year-End Alert – Erroneously Paid Wages

Erroneously paid wages are payment for which the employee was issued a payroll check for wages not actually earned. Erroneously paid wages should not be included on Form W-2. Erroneously paid wages are not the same as unclaimed wages. Unclaimed wages are pay for time the employee has actually worked, but for which the paycheck has not been picked up, or claimed, by the employee.

If you have paychecks for erroneously paid wages, please return them to your Payroll Account Manager immediately so the checks can be voided as timely as possible. Any delay in returning these checks can result in an overstatement of wages on an employee’s Form W-2. We will not issue credit invoices for erroneous paychecks returned after December 31st of the year in which they were issued. Furthermore, erroneously paid wages can result in additional charges for W-2 corrections if items are returned after December 31st.

** Upcoming Alerts **

  • Gift Cards, Gift Certificates, or other Cash-Equivalent Awards and Gifts
  • Reportable and Taxable Fringe Benefits
  • Erroneously Paid Wages
  • Changes for Year 2023

If you have any questions or concerns regarding items for year-end payroll processing or reporting and taxation, please reach out to your Payroll Account Manager.



Adams Keegan

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