Hello,
I received a separate W2 from my employer for $2000 in paid family leave for taking care of a sick family member last year. This was actually provided by a third part agent on behalf of the employer. To my surprise, the Third party agent sent me a 1099 Misc for the same amount. Isn't that a duplicate? I should have received from either one. Will the IRS construe this as income from 2 different sources? Should I call my employer and have them revise the W2? Please advise.
Thank you!
John
Yes, that sounds like a duplicate, and yes, the IRS might construe this extra form as additional income.
Are you in California? It's OK that the employer used an insurance company to handle PFL; the insurance company should have issued the W-2. You should ask HR why you got a W-2 AND a 1099-MISC from the third party. It's possible that your HR was not aware that the third party was planning to do this.
Either the 1099-MISC or the W-2 needs to go away. See "What do I need to know about Paid Family Leave in California".