An employee terminated in August of 2007. In 2008 we decided to expand a benefit to include clerical staff for partial reimbursement of tuition for spouses. The benefit is retroactive to 2005. In 2008, the employee received tuition reimbusement for a spouse retroactive to 2005 and 2006. Should the employee receive a 1099 Misc in 2008 or a corrected w2 for 2005 and 2006?

Thank you.

You should send them a 1099 misc.