Team,

I have a business that has sales employees.  During the scope of their employment the employees develop books of business that are basically owned/serviced by the company, but if the employee leaves then the company will buy the developed book for a set formula.  The company is treating this as bonus compensation and issuing a 1099-Misc.  Is that the correct treatment?  In the eyes of the company they are not buying a third party business, just paying to keep it from leaving.  Like a retention payment.  Thoughts?