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-   -   Are bonuses non-employee compensation? (https://www.askmehelpdesk.com/showthread.php?t=330053)

  • Mar 16, 2009, 02:35 PM
    caryncann
    Are bonuses non-employee compensation?
    In 2007 the company I worked for was sold. We were given very generous bonuses with no taxes taken out. In Jan of 08, we were given 1099's for the bonuses and a check from the company to cover their portion of the taxes. I filed my taxes along with the 1099. Two other employees have received bills from the IRS for the "non-employee compensation". These were bonuses given to us the day the sale was completed. Can this be protested and won with the IRS? Thank you for your help.
  • Mar 16, 2009, 11:45 PM
    MukatA

    You will report your income (bonuses) and expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Half of SE tax is deductible on line 27 of Form 1040. Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor
  • Apr 22, 2009, 10:32 AM
    foundtreasures

    Can an employer give an independent contractor a bonus?
  • Apr 22, 2009, 12:44 PM
    AtlantaTaxExpert
    Technically, no. An independent contractor is NOT an employee, so any extra income given to the contractor is not, by definition, a bonus, but rather extra payment for services rendered.

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