Yes, your husband's employer is treating the $1,000 payment as wages, subject to income and employment tax, as opposed to reimbursing your husband for work related tools he bought. The former is subject to income and employment tax, that later would not have been taxable income. If the payment was made in 2021 it should have been included on his 2021 W-2. If it was made in 2022 it will be included in Wages on 2022 W-2.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
