Resident alien employee (TN Visa) employed with employer A in 2009-11. Employee does a good job on a client matter, but the matter does not resolve until 2013 when Employee no longer works for employer A. However, employer A gives a bonus to Employee (now working for employer B) in 2013 for the work done in 2009-11. Employee works for employer B in 2011-13.
What is the best way to document 2013 bonus? 1099 means employee is self-employed (she is not). W-2 means Employee is working for employer A when in fact she is with employer B.
Want to avoid triggering estimated tax issue & penalties and giving wrong impression that Employee is working for 2 employers when she is not. Also don't want to give the wrong impression she is self-employed. How can bonus be categorized?