What form is used to report "Golden parachute" payments to non-employees?

The correct form used to report "Golden parachute" payments to non-employees is the 1099-MISC. This form is specifically designed for various types of income that do not fall under employee wage reporting, making it applicable for payments such as bonuses, commissions, and certain types of non-employee compensation.

Golden parachute payments typically arise from employment agreements and are often severance payments that exceed certain limits when an executive or manager is terminated or experiences a change in company control. Since these payments are not regular wages, they cannot be reported on a W-2 form, which is reserved for employee wages.

The 1099-MISC form captures income that individuals and businesses receive that doesn’t come through traditional employment. This includes a range of payments such as rent, royalties, and non-employee compensation, making it the appropriate choice for reporting golden parachute payments.

The other forms listed serve different purposes: the 1099-DIV is used for dividend payments, the W-2 is specifically for employee wages and salaries, and the 1099-R is used for reporting distributions from retirement plans. None of these options would accurately reflect non-employee compensation in the context of golden parachute payments.