@mc013 wrote:
Thank you for your response. In the event that I claim this as income that should have been reported on W2 would I have any tax penalty if old employer opted not to pay their portion since they sent a 1099-NEC after my final check was received ? Just want to do the right thing and avoid any issues - Thank you
You have no further obligations, unless your employer tries to tell the IRS that you were never an employee and were an independent contractor. In that case, you would submit a form SS-8 with documentation of your employment status. Assuming you can prove you were an employee, the employer gets in worse trouble than before and has to pay both halves of the social security and medicare tax as a minimum penalty. This is unlikely to happen.
Also, the employer will not have the choice of "opting" to pay or not pay their half of the employment taxes. You think the IRS will ask politely and then shrug their shoulders and walk away if the employer says no?
