u/Afro-Mermaid

How to report income from former employer after layoff settlement or severance. I received no 1099.

Mid 2025 I went through a layoff. I signed an agreement that defined my last work day and included a payout. The agreement was titled, separation agreement. Employer intentionally did not use the word severance because terms were outside of terms in union contractual severance. [Adding this, in case it matters]

I anticipated completing a Schedule C for this final payout. However, I did not receive a 1099 (in any form) from my former employer. I am pretty sure they said I would get one.

Now today I am attempting to complete Schedule C for the payout income in addition to my W-2 wages. However, when I look at the separation check stub, the payment description (written by former employer) states, "Payroll Regular Staff."

This income is not included in my total W-2 wages (from same employer) and the check was issued after my last day of work. Is my former employer being shady? Should I ask them to correct my W-2 since they put "payroll"? Can I add the amount into my W-2 totals without a correction to the actual w-2? Or should I proceed with completing a Schedule C as I planned, even though no 1099-NEC? I really don't want to contact former employer again unless absolutely necessary.

How should I move forward?

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u/Afro-Mermaid — 17 hours ago