- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Hey all,
My client received a 40K sign on bonus on a 1099-NEC. How do you normally handle this?
I think it should be on a W2. The client is over Social Security max.
Thanks,
Aaron
Best Answer Click here
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
1) Tell client to ask employer to correct it.
2) If the employer refuses to correct it, file Form 8919 but warn client that his employer will eventually get a notice from the IRS about it.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Suggest to the employer that they read Rev Rul 2004-109
https://www.treasury.gov/press-center/press-releases/Documents/rr_2004_109.pdf
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
When they talked to the employer the bonus was paid by a different entity. Not the entity that they are "technically" working for. Thanks for taking the time to respond.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"Not the entity that they are "technically" working for."
1099-Misc box 3, then.
Don't yell at us; we're volunteers
