Do I put a contractor/consultant's holiday bonus in box 3 or 7 on form 1099-misc? One bonus is under $600 (total non-employee compensation is over $600.)

ally1 · ‎June 5, 2019

Contractor 1:

$11,000- non-employee compensation

$2,000- holiday bonus

Contractor 2:

$2,400- non-employee compensation

$100- holiday bonus

Do I add the holiday bonuses to box 3 or 7 of the form 1099-misc? Thanks!

ScruffyCurmudgeon · ‎June 5, 2019

Given that in both cases, the monies were paid in response to work being done for you, and were not paid in any form such as a stipend or subsidy, the total amount is non-employee compensation. By comparison, if the two individuals were full-time employees of yours and you were to prepare Form W-2 for each, the total amount would be reported in Box 1 of the W-2 as wages or salary.

Bonuses are paid as "additional compensation" relative to the employment.

If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67

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Do I put a contractor/consultant's holiday bonus in box 3 or 7 on form 1099-misc? One bonus is under $600 (total non-employee compensation is over $600.)