40K sign on bonus on 1099-NEC

[Aaron]

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 

[TaxGuyBill · Accepted solution]

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.

[BobKamman]

Suggest to the employer that they read Rev  Rul 2004-109

https://www.treasury.gov/press-center/press-releases/Documents/rr_2004_109.pdf 

[Aaron]

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.

[qbteachmt]

"Not the entity that they are "technically" working for."

1099-Misc box 3, then.