PARENT EMPLOYED BY A CHILD: Payroll Tax Issues
The wages for the services of a parent employed by his or her child in a trade or business are subject to income tax withholding and Social Security and Medicare taxes.
The wages paid to a parent employed by his or her child are not subject to FUTA tax, regardless of the type of services provided.
CALL NOW 561-746-1926 or 561-339-8102 if you have any questions or concerns or would like to schedule a FREE, Confidential, N0-Obligation Tax-Saving Consultation.