social security exempt employees
Do my children have to pay social security tax?
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dJVhTIba8r4lwFacfA8pyY
12/09/10 7:53pm PST
Viewed by asker 12/15/10 11:09am PST
Viewed by asker 12/15/10 11:09am PST
6 Replies
dduplinski
Questions asked: 6
Questions answered: 1898
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Questions answered: 1898
Points earned: 3984
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12/13/10 9:32am PST
How old are you children? What is the legal form of your business? LLC, Partnership, Corporation?
If this answers your question please click on the solved button or continue asking questions in the forum.
12/15/10 8:29am PST
My son is 14 years old. Our business is set up as an LLC. Does he have to pay social security and state tax? In the employee center, I set up his account as "do not withhold" and then I created a dummy check. It shows no federal withholding, but it does withhold state taxes and social security tax? His total pay is less than $1000.
12/15/10 9:05am PST
Is it a single member LLC which is taxed on your personal return? If so, then here are the rules
http://www.nase.org/knowledgec...
12/15/10 9:31am PST
It is not a single member LLC. It is a partnership -- two members -- my husband and my brother.
12/15/10 9:46am PST
The solution
Only sole proprietorships can hire their children and have them exempt from social secuity tax. Otherwise, your children must pay fica and medicare tax. they are not exempt
12/15/10 11:09am PST
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Thank you. It's nice to finally get an answer to my question. I really appreciate it.
