u/Shoddy-Hold-2970

I recently took over HR responsibilities for the small business I work for. We received a VOE (Fannie Mae 1005) for a former employee (that was employed before I began my role in HR). Upon looking at our records this individual was paid via company checks and we do not have a W2 nor a 1099-NEC for them. On Quickbooks I am able to see the amounts paid to the employee- but not a breakdown.

I am not sure if this was a lapse on behalf of the company or if it is not a huge issue as long as I document the information I have. Will this raise legal issues? How should I proceed?

Thank you! Please let me know if this type of question is acceptable.