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Does a car salesman who is an employee have to pay SE tax on his 1099 Misc. income listed under other income

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Level 1

Car salesman who gets a w-2 also got a 1099 misc. with an amount in box 3.

Does he need to pay SE tax on this or can it be reported under other income on line 7a?

IRS ruling?

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2 Replies 2
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Level 12

Who is the payer name on the 1099? What is the reason for the payout? Example:

Prize from the Automobile factory or some honest competition? Box 3 is fine, and that is Other Income.

Or, Bonus from the employer? Box 3 is an error; it should be on the W2 and should have been run through as payroll.

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"Level Up" is a gaming function, not a real life function.
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Level 15

You can find your own IRS ruling.... but a good place to start searching would be for "spiffs"

Former Chump... umm.... AllStar.
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