Sole Proprietor payroll: child 17 turning 18
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Fact:: a Sole Proprietor hires her 17 year old child, he is not subject to Federal Taxes. However at which point does he become FICA taxable if he turns 18 in October? This is a 941 Filer
From his birth DATE forward? For the ENTIIRE QUARTER in which he turns 18? For the ENTIRE YEAR in which he turns 18?
Answer
This is a really good question. I'd suggest you post this question on the tax forums or research it at www.irs.gov
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Answer
Once a child reaches age 18 they are no longer exempt from FICA and Medicare taxes. Once a child reaches age 21 they are no longer exempt from FUTA taxes. See publication 15 available at irs.gov.
Answer
I realize that @ 18 he is no longer exempt from FCIA, however @ WHICH POINT IN TIME is he no longer exempt? From his birth DATE forward? For the ENTIIRE QUARTER in which he turns 18? For the ENTIRE YEAR in which he turns 18?
I can not find the answer to that specific question in the Circular E.
Just thought someone may have come across this situation.
Answer
Wages paid from his birthdate forward.
