I worked for a company as an employee for 3 years--2017 through 2019. The division of the company I worked for was sold at the close of business 12/31/19. I had an employment contract, received benefits, had taxes withheld, etc. My employment contract included a bonus that was to be paid out in December of 2019. My former employer delayed paying the bonus until early January of 2020, stating that they did not have all the data they needed to calculate the bonus payment until after the previous year closed out. In order to receive the bonus payment, the company required me to complete a W-9, stating that they were required to do that since I was no longer employed by them. I protested, stating that the bonus was paid solely for work I completed as an employee, and also noting that I did not have any agreement to perform work for them in 2020, so they were really not paying me for any services I provided in 2020.
My former employer disagreed, and stated if I wanted the bonus, I had to complete the W-9. I wanted the bonus, so I completed the form and received a check for the entire amount with no withholding. As expected, today I received a 1099-NEC from my former employer.
Is this truly non-employee income since I was an employee of the company at the time the work was performed? Or, is my former employer simply trying to avoid payroll taxes, 401k matches, etc? If it's not non-employee income, should I file an 8919 and SS-8? Thanks to the community for any help!
