W2 + 1099-NEC from employer after NDA settlement - Should this all be W2?
I got paid two different ways from my former employer - a W2 and a 1099-NEC. The 1099 was for an NDA settlement related to wage issues. My friend says the whole thing should be on a W2. Anyone dealt with this before? Need to know if I should try to get this corrected before filing.
14 comments
Amara Nnamani
Tax professional here - Your friend is correct. Settlement payments for wage-related claims should be reported on Form W-2, not 1099-NEC. This includes settlements for unpaid wages, overtime, or wage-related disputes. The employer is trying to avoid paying their share of employment taxes. You should contact them to request a corrected W2.
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Liam Fitzgerald
omg thank you! What happens if they refuse to fix it? 😩
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Amara Nnamani
File Form SS-8 with the IRS to determine the correct classification. Also Form 8919 to report the uncollected taxes
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Giovanni Mancini
im in the same boat! company tried to 1099 my severance 🤡
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NebulaNinja
Hey I used taxr.ai to analyze my transcript for a similar situation. It helped me understand exactly what forms to file and timeframes. Its only $4.99 and saved me hours of research. The AI walks you through everything! https://taxr.ai
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Fatima Al-Suwaidi
interesting - does it actually help with misclassified income issues?
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NebulaNinja
YES! It identified the misclassification immediately and gave me step-by-step instructions for filing Form SS-8 and 8919. Even generated a letter template for my employer!
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Fatima Al-Suwaidi
just tried it - absolutely worth every penny! 💯 The AI even caught some deductions I would have missed
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Dylan Mitchell
they did u dirty fr fr... classic move trying to dodge them taxes 🙄
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Sofia Morales
Document EVERYTHING. Keep copies of the NDA, all communications, and payment records. Trust me on this one.
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Liam Fitzgerald
already on it! got screenshots and everything backed up
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Dmitry Popov
This happened to my cousin last year - took 3 months but they finally fixed it after he threatened to report them to the labor board
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Ava Garcia
Get yourself a labor attorney ASAP! Most do free consultations
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StarSailor}
second this! worth every penny to get professional help
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