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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
Solved! Go to Solution.
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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.
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Suggest to the employer that they read Rev Rul 2004-109
https://www.treasury.gov/press-center/press-releases/Documents/rr_2004_109.pdf
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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.
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"Not the entity that they are "technically" working for."
1099-Misc box 3, then.
"Level Up" is a gaming function, not a real life function.
