Quote Originally Posted by rockhound View Post
report them to the state labor board and the IRS
I think this should be the step taken after you do everything you can to contact the original business to see whether they'll A) pay you the amount they report on the w-2 or B) agree to shred the W-2. W-2s are due to the recipient by 01/31/**, the W-3 and W-2s for the government are not due until 02/28(9)/**, so this would give you/the-employer time to settle up. If they already withheld on your phantom wages and made tax deposits, it will be in their interest to just give you the net amount instead of having to amend payroll returns or whatever. If you do end up calling State/IRS, the IRS will probably tell you to get a lawyer or consult your tax advisor (this is the point you want to put your hand through the phone line and choke them out).

Quote Originally Posted by Ridge View Post
If it's under $600 I think, it doesn't even get reported...
You're thinking 1099s for Services paid as Nonemployee Compensation. Any amount paid as an employee needs to be reported on a W-2 because of withholding (that should or shouldn't have been withheld...)

*I am not a CPA, just like to help out with what limited knowledge I have*