Before proceeding to Box-4, the IRS 1099 Instructions towards Box-3 for other income states that as follows – The employers should not include prizes and awards paid to their employees. Whereas they need to report form w2. The employer should not include prizes and awards in BOX-3 for services by non-employees, who are not in payrolls such as an award given for the top commission salesperson and they need to report this in BOX-7 E-File Form 1099 Now – Click here...
Tax Form 1099-MISC Guide – IRS 1099 MISC Box 3 and Box 4
December 30, 2014