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ally1
New Member

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.)

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!

1 Best answer

Accepted Solutions
ScruffyCurmudgeon
Level 9

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.)

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.

Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time

View solution in original post

1 Reply
ScruffyCurmudgeon
Level 9

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.)

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.

Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time

View solution in original post

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