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1099-NEC issued to employee for vehicle damage
February 21, 2023
Q. From what I can gather, we paid an ex-employee a claim for damage to his vehicle. He was issued a 1099-NEC for 2022. 1. Should this have been on a 1099-NEC?2. Or should it have been treated as an expense reimbursement, even though he is no longer employed by us?3. If it should not have been on a 1099-NEC, do we need to issue a correction to IRS?
A.
(Answered by IOFM's third-party tax experts)
1. No, it should not have been reported on a Form 1099-NEC. It should not have been reported to…
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