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Accounting, Payroll & Pension Issues/1099/W2
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Question
Is it legal for an past employer to W2 you for a specific year then turn around and 1099 you for the same year for monies won in a civil suit? And an asset was given in lieu of the monies ordered in the civil suit? Seems to me that would be a double edge sword.
If the W-2 was for wages earned and the 1099 was for the civil suit than it is correct. Even if assets were given in lieu of the money the 1099 would still have to claim the fair market value of the assets.
You cannot be given a W-2 and a 1099 for the same payment, it would need to be either one or the other.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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