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@itonewbie wrote:

Furthermore, this was given to him as a sign-on bonus

Under §3402 as well as Treas. Reg. §§31.3402(d)-1 and 31.3403-1, the employer carries the liability for all taxes that are required to be withheld whether or not the proper amount, if any at all, was actually withheld from the employee and would only be relieved of the portion of tax owed (but not the penalties) which is proven to have been paid (e.g. by the employee incorrectly paying over SE-tax).

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Interesting. 

I haven't had a chance to dig through those Regs that you cited yet, but let's change this to a hypothetical situation that has one tiny difference - let's say the employer issued a 1099-MISC or 1099-NEC for this bonus (which is somewhat common from clueless employers).

That one slight change would fit the exact criteria that is listed on the 8919 (with code "H"), wouldn't it?