US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

A.s.P.: Jun 29, 2006; They're just a bunch of shapes. Don't read too deeply into it.

I stopped working full-time at my job (where I've worked FT for 3 years) in August 2010, when I started school. I got a W-2 for that amount of work, and my salary was paid via Direct Deposit. In December, I got a bonus check for $5k that was just written on a company check with no withholding. I didn't get any tax forms for the bonus, and asked if I needed a 1099 or something. My boss, who is the ad hoc financial administrator, said with uncertainty, "Oh yeah, good point." So he whipped up a 1099, but it feels wrong, especially considering I'd have to pay about $1k or so out in taxes. Could I somehow get that bonus re-submitted to me with taxes withheld, or is this the way it's supposed to go?

Edit: Also, would that be box 7 Non-employee compensation or box 3 Other income?

A.s.P. fucked around with this message at 20:37 on Mar 15, 2011

# ¿ Mar 15, 2011 20:35

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# ¿ Apr 29, 2024 03:01

A.s.P.: Jun 29, 2006; They're just a bunch of shapes. Don't read too deeply into it.

Captain Beans posted:

Your boss is either an idiot or is trying to commit fraud.

If you are a normal employee your bonus would just be like extra wages. As such your employer would also be on the hook for their portions of FICA, medicare ect.

When you get a 1099MISC you are treated as your own business so you pay self employed taxes on your income to make up the lack of FICA, medicare, ect portions from the employer.

He probably gave it to you as a check so he woudln't have to deal with either of the situations and only gave you a 1099MISC because you asked about it. Or they already did their books and didn't want to go fuddling around with everything to add bonuses.

You need to talk to him about this, because you didn't work as an independent contractor so there should be no 1099MISC. If he 'just whipped it out' he might not have even filled it with the IRS so that is good for you. If he already filled it then you are going to have to go through some more poo poo that I couldn't specifically tell you.

Thanks. I'm not sure if this makes a difference, but after leaving my job, I worked for about 2 weeks while I was on winter break this December 2010. It was not salaried and was considered part-time (hourly wage). I haven't received a check for that work yet. Maybe he is considering this work as "independent contractor" wages?

If not - do I just ask him to resubmit the payment?

# ¿ Mar 15, 2011 21:33

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.