Taxable employee benefits

Forum|Forum|2 years ago
April 8, 2024
1 reply
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Why can't you fix your product to accept 1099-MISC for taxable employee benefits. Use schedule 1 Form 1040, lines 8z and line10.

Vanessa A

Level 15

Employee benefits should not be reported on a 1099-Misc. They should only be reported on a W-2.

If you are an independent contractor, then they would be reported on a 1099-NEC.

If the recipient is an employee, this amount is includible as wages and reported by the employer on Form W-2 and generally is subject to federal income tax withholding, Social Security and Medicare taxes. For example, bonuses are always taxable because they are income under Section 61 and no IRC section excludes them from taxation. Taxation of Fringe Benefits

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lbgolfman81Author

Level 2

Not true about W2 that is old news. It is 1099 MISC and TurboTax wants me to claim as a business, I do not own a business, I was an hourly employee but have been retired for a few years.