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woody789
New Member

1099 Misc from my employer

I received a 1099 Misc from my employer.  I was told this was a bonus (I'm a CNA).  How do I handle this?  Other income?  Is it taxable to just Federal or do I have to pay SS and MC on it?

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3 Replies

1099 Misc from my employer

Yes, it is other income.  It is subject to Federal taxes, FICA and medicare taxes.  You also have to pay the business share of the taxes also.  So instead of paying 7.65% you have to pay 15.3% although you do get a small deduction for part of it.

1099 Misc from my employer

If you are a regular W-2 employee (not self-employed and not a "statutory employee" then all compensation for work performed, including bonuses, is supposed to be reported on your W-2, and your employer is supposed to withhold social security and medicare tax and pay their half of those taxes.  By using the 1099-MISC, the employer is (through ignorance or intention) trying to avoid their tax responsibilities.

 

When you enter the 1099-MISC in the Other Income section, there is a listing of special circumstances, check the box next to "this 1099 is for money from my employer that should have been included on my w-2."  Turbotax will calculate income tax and will also calculate that you owe 7.65% additional tax for social security and medicare tax.  (But you will not pay the extra 15% tax that you would pay if this was considered self-employment.). Turbotax will include a form 8919 with code H as part of your tax return that explains how this money was supposed to be on your W-2. 

 

(If you are a self-employed independent contractor and normally get a 1099-NEC, this is included as business income even though it was on a 1099-MISC instead, and you pay income tax and self-employment tax.)

1099 Misc from my employer


@TLmusicman42 wrote:

Yes, it is other income.  It is subject to Federal taxes, FICA and medicare taxes.  You also have to pay the business share of the taxes also.  So instead of paying 7.65% you have to pay 15.3% although you do get a small deduction for part of it.


No, it is not self-employment and not subject to 15% SE tax.  See my other answer. 

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