your question is quite confusing. who is DH ? is DH related to you? how? why do you think that the fact that you had max W-2 wages (you're asking from self-employed) that it would have any effect on DH?
we know nothing about your business so can't say about an FSA though that would have no effect on the reporting of the compensation paid to DH. we also can't say whether or not a 1099-NEC is proper. if you exercise enough control over DH, the rules may say you should have issued a W-2 and withheld taxes. regardless, either form was required to be file by around the end of February. there are penalties for late filing. I strongly recommend you consult with a tax pro in your area. we lack too much information and it seems you lack sufficient tax knowledge. if you err in proper reporting it can catch up to you and cost substantial additional taxes, penalties and interest.
