If you were an independent contractor, everything you receive as compensation for your services is taxable income, even if it more than your original agreement. (This is not a gift, and that suggestion could cause serious problems for both you and the business.)
If you were a W-2 employee, and you have deferred compensation, you should get a W-2 for the full amount of your compensation, subject to all normal taxes on wages. This sounds like it should be treated as a bonus, rather than as a forgiven loan or gift.
I don't see how you can rollover funds to your IRA unless they came from a qualified plan like a 401k. And there is no way the employer could legally deposit more than $69,000 into a 401k for you in 2024 (or $76,500 if you are over 50), and the employer can't deposit that much into just one employee's plan, unless he is that generous with all employees. (Company benefit plans can't show favoritism.)
There seems to be a lot going on here that is dodgy, illegal, or maybe just not explained properly. I suggest you see a qualified CPA or tax accountant before the end of the year, so you have a chance to correct any errors before they become uncorrectable.
