The wages that I pay to my family members are taxed as any employee. However, I understand there are some exemptions and would like to know what these exemptions are?
TaxConnections Members... Answer This Question
Want To be One of Our Tax Experts? Register Here
Tax Professional Answers
William Keats
Child under 18, employed by parent...Withhold Fed. Tax, FICA and FUTA are Exempt.
Child under 21 (19-20) employed by parent...W/H Federal; W/H FICA, FUTA Exempt
Child under 21, domestic work (parent) W/H Federal; FICA and FUTA Exempt.
Parent employed by child W/H Federal tax and FICA; FUTA Exempt
Spouse employed by spouse W/H Federal and FICA; FUTA Exempt
Leave a Comment
568 weeks ago
Child under 21 (19-20) employed by parent...W/H Federal; W/H FICA, FUTA Exempt
Child under 21, domestic work (parent) W/H Federal; FICA and FUTA Exempt.
Parent employed by child W/H Federal tax and FICA; FUTA Exempt
Spouse employed by spouse W/H Federal and FICA; FUTA Exempt