Other income.

Thank you

Has your client tried approaching the employer?  The employer has every incentive to report the wages as it should in order to deduct the compensation expense.  It will also help ensure it carries no liability for failure to withhold and report.  The exposure is not only on the employer's but also the employee's share of taxes.

In case your client has exhausted all options with the employer, the employer should be notified that a F.4852 will be filed with the IRS - it may then have more to answer to.  With that, I'll report the income on Line 1.