It depends. This form by definition is considered self employment. If you were an employee of this same company then it should be part of your W-2 wages. On the other hand if you performed a service as an independent subcontractor then it is self employment income and must be reported as such.
Options:
- If you are an employee of the same company you can request a corrected W-2 or you can actually report it as though you were an employee and then the IRS will go back to your company for the employer share of social security and medicare tax. You will pay your half on your tax return.
- IRS Form 8919, "Uncollected Social Security and Medicare Tax on Wages," is used by workers misclassified as independent contractors to report their share of taxes (7.65%) when they should have been treated as employees. Filing this form allows workers to pay only the employee portion of FICA tax, avoiding full self-employment tax (15.3%).
- If you were not an employee and thought you were or should have been you can file Form 4852, Substitute W-2, with the same tax ramifications as in number 1. above but creating your own W-2. The IRS will collect the employer share of social security and medicare from the employer as well.
- Form 4852 (Substitute for Form W-2) is used when you are a recognized employee but did not receive a W-2 or received an incorrect one.
- Report the income as though you were self employed and continue with the entry of your 1099-NEC.
Form 8919: Code H
Complete the steps (entered below for your convenience). The IRS will go back to your employer for their share.
- Scroll to Less Common Income
- Start next to Miscellaneous Income
- Start next Other income not already reported on a form W-2 or Form 1099
- Yes to did you receive any other wages
- Continue through to Did you earn any other wages? and answer Yes
- Select Employee compensation that was not reported on a W-2
- Continue > Report your wages, employer information and select reason code H
This will report your wages and you will also see the information for the SS-8 along the way. You will pay only the employee share of social security and medicare taxes. Form 8919 will be included with your return, see the link below.
The Form SS-8 helps to differentiate between an employee and an independent contractor (self-employed).
Form 4852:
You can file as though you received a W-2, but may have to file by mail if you do not have the employer identification number (EIN) of your employer (should be on the 1099-NEC). In this case, complete a W-2 and then on the follow-up pages look for the page titled 'Do any of these uncommon situations apply to this W-2?'
- Select 'Substitute form - I didn't get a W-2 from my employer and need to complete a substitute form.'
- This will take you through the steps to complete the Form 4852 so you can file your return.
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