W-2 received, but never got paid

[kcladyjane]

My husband worked a 1/2 day for a temp agency and quit.  They never sent him a check for the work and we didn't worry about it.  We just received a W-2 in the mail from the temp agency.  The Agency is not wanting to send him a check, but I don't think we should have to claim it as income if we never received the money.  So what can I do?

[swamp]

I think a call to the temp agency might be my first call.  Either give me an amended w-2 or a check.  You pick. 

[Rocky Mtn Saver]

If you got a W-2 for the income, so did the IRS. So you'll need to claim it, but you should definitely be talking with the employer and/or the labor board for your state.

[Deleted]

Why doesn't the agency want to send a check? Do they say they already have? If so, can they check if it has cleared the bank?

They obviously have the record of his income in their system, since he got the w-2, so they acknowledge that he is owed the money.

[kcladyjane]

Ok, they are supposed to send him a check now...but I have another issue...They said on the W-2 that his wages were $56, but they charged him a placement fee of $30.  The $30 is NOT reflected on the W-2.  So it looks like he made the full $56.  Should they have to fix the W-2 to reflect what he actually made?

[Rocky Mtn Saver]

Did they take the placement fee out of his check? W-2's don't generally reflect after-tax deductions, although I've never dealt with something like a placement fee.

[Deleted]

What kind of two bit temp agency charges placement fees to the employees?

[Rocky Mtn Saver]

KC, do you itemize? I'm thinking that the $30 might be deductible as job search expenses, limited to the rules of that deduction.

[Rocky Mtn Saver]

Feb 4, 2013 16:08:11 GMT -5 ArchietheDragon said:

What kind of two bit temp agency charges placement fees to the employees?

When I've worked with agencies, I wouldn't have worked for a place that charged me to place me as a temp.

[kcladyjane]

No we don't itemize...

[kcladyjane]

Yeah normally we wouldn't.  This agency charged a one time small fee so my husband was okay with it.  Well really he didn't have a choice if he wanted to take the job.  And turns out the job was terrible so he didn't stay.  Live and learn.

[kcladyjane]

I haven't seen the check yet...since they never sent it, but they told him it was for $26 and he can see the W-2 shows $56.  I am not exact on my numbers here since I haven't seen the figures.  But I know the W-2 minus the taxes they took out doesn't equal the check amount.

[Rocky Mtn Saver]

KC,

I think that the $56 is gross and what is reportable. The $30 fee would be something you would itemize as a job search expense:

www.irs.gov/publications/p17/ch28.html
Job Search Expenses
You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. You cannot deduct these expenses if:

•You are looking for a job in a new occupation,

•There was a substantial break between the ending of your last job and your looking for a new one, or

•You are looking for a job for the first time.


Employment and outplacement agency fees. You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation.


However, since you don't itemize, I don't think there's anything you can do about it if it was legit.

[eapat]

KC,

I wouldn't loss any sleep over the $30.  Even if you are in the 25% tax bracket you are talking about $ 7.50 in additional tax.  Not worth the stress or aggravation.

[kcladyjane]

Thanks everyone!