Have a Tax Question? Ask a Tax Expert
If the person is your employee - the bonus is classified as wages and MUST be reported on W2 form.Reporting the bonus on form 1099misc is not correct - regardless in which box it is reported.
Here are specific instructions from form 1099misc - see page 8 - right column
Payments not reported in box 7. Do not report in box 7:
an employee's wages, travel or auto allowance, or bonuses and prizes (report on Form W-2);
I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.