Tax Law (Questions About Taxes)/Who to 1099?


Hi William,

Do I have to 1099 an employee that I cut a check to.

-It is not wages (not run through payroll)
-It is not for services...they did nothing for us.

We are allowing our employee's to donate their PTO time to other Employees in need.

We can adjust their PTO down, but in cutting the employee in need a check for the benefits...

Would I have to 1099 them for this?

Employee who gets paid still receives a paycheck no?

Let's say. Two employees - onr used all pto and one still has Vaca

Normally one with no pto could take sept one off with no pay and employee with pto takes off sept to and still gets paid one day pay. Right?

So now the employee with pto still works sept two and does not take a day off, but gives us one day vacation...  No pto person gets paid for sept. One    still via w2.    No action for employee two.

Key is when employee two takes off October one and has no.more pto left, thwy don't get paid.   Employee two does not get any benefit or other charitable deduction or other. For this action .  Employee one does get paid. So has w2 income

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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