Which tax year do off-cycle payrolls appear on?

Question

If I run an off-cycle payroll in January 2026 for hours an employee worked in December 2025, which year’s W-2 will it appear on?

Answer

2026.

For tax and W-2 Form purposes, 7shifts Payroll and the IRS categorize wages based on the pay date. The pay date is the date the money is distributed to the employee. This rule applies regardless of the pay period dates or when the work was performed. Because the pay date lands in 2026, those earnings and taxes will be reported on the employee's 2026 W-2 Form.

Why this happens

IRS regulations require that income be reported in the calendar year it was received. Since 7shifts Payroll follows these federal standards, 7shifts automatically assigns wages to the tax year that matches the actual disbursement date.