Employee Received $10000 Bonus as a Check

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  • 15Gornzz51
    Junior Member
    • Jul 2020
    • 23

    #1

    Employee Received $10000 Bonus as a Check

    In 2025, an employee received a check for a $10000 bonus from the employer. What is the best way to report the income?
    1] Is the first approach to try to get the employer to issue a corrected W2?
    2] If the employer will not issue a corrected W2, should the $10000 be reported on a substitute W2 form 4852?
  • New York Enrolled Agent
    Senior Member
    • Nov 2006
    • 1549

    #2
    The employer is going to deduct the payment. Are you certain the $10K payment is NOT already included in the W-2 form?

    Comment

    • Uncle Sam
      Senior Member
      • Jul 2006
      • 1474

      #3
      Before you take any action at all - I suggest you first find out (have your client inform you) of how or why the bonus was received. What was it based on and determine if it was as the prior poster mentioned included on the original W-2 filed. You also hadn't mentioned if it involved tip (which I would doubt) or overtime pay. Providing more pertinent facts would help.
      Uncle Sam, CPA, EA. ARA, NTPI Fellow

      Comment

      • Rapid Robert
        Senior Member
        • Oct 2015
        • 2020

        #4
        First thing I would do is ask to see the paystub that accompanied the payment (in my state at least, providing such a paystub is mandatory by law, even if wages paid in cash). If it was actually a round number as you post, there should have been a gross-up to cover the tax on the withholding, so the gross wage may be higher.

        Hopefully it is not an employer trying to game the system (fraud) by considering this a payment to an independent contractor.
        "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
        "That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe Howard

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