1099 NEC - Commission Paid out by former Employer

[PLC3]

My husband received commissions earned from his former employer after he left the company.  The company issued him a 1099-NEC for the commissions earned since he was no longer an employee at the time the commissions were paid out.  My husband was employed at the time he made the sale of the project.  The company’s policy was to not pay out commissions until the project was completed usually (6-8 months or more) from when the initial sale was made.  Thus by the time the project was completed my husband was no longer an employee of the company but they still honored the commission owed and thus issued him the 1099-NEC.   Should the commission still have been on his W-2 or?  I was seeing this as a response on another question.

How should I record the income received?  Just want to make sure I record this correctly since it was a one time payment of commissions and not from a business operated by my husband if that makes sense.  Or should this income even be on Schedule C - that is how Turbo Tax is recorded it right now.

[RobertB4444]

Yes, unfortunately your husband owes self-employment taxes on this income.  It was an attempt to earn money and it was earned at his primary job (even though it was paid later).  I think they probably should have taken taxes out of it but since they didn't your husband will have to pay the taxes now.

Using a schedule C, as TurboTax is doing, is the proper way to report this.  It also gives your husband the option to deduct any expenses - if he had any - that were necessary in order to receive this commission.

@PLC3