So, for his first few weeks of work, he nor the employer paid any payroll tax. And for the remainder of the year, he was properly set up on payroll, meaning the employer paid half of the payroll taxes and he paid the other half and this was correctly reported on his W-2.
How you enter the form will determine who pays the payroll tax for those first few weeks of income. All of his income should have been on the W-2, but because of whatever (timing) reasons, it wasn't. So technically, you should be checking the box that says This income should have been reported on a W-2.
If you enter the 1099-nec in TurboTax:
- Checking that box will generate a Form 8919 and only his share (half) of the payroll taxes are added to his return. The IRS will go back to the employer for their half of the payroll tax and possible penalties. Since he is still employed with that company, requesting a corrected W-2 and voided 1099-nec, should be done before filing Form 8919.
- Not checking the box will generate Schedule C in which he would pay all of the payroll taxes, but would be able to deduct business related expenses.
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