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

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Question
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?

Answer
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

Tax Law (Questions About Taxes)

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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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19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

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