FICA Exempt

[Super Mom]

I have a son who is under 18 and paid by parent business. How do I show this income? I don't think they did a W-2 b/c no FICA and won't have taxes to pay--it's not 1099 income, it's not business income for him, maybe show in other income or is there a better way?

Any help is greatly appreciated!!!!!!!!!

[taxmandan]

The business needs to give him a W-2. He was an employee, no FICA as you say, but still have the filing requirement for the W-2 & W-3, etc. This is a sole-prop right?

[Super Mom]

What should I do?

The parent business is also a client. If they did no w-2, isn't it too late? We can still get the W-3 in time, the son won't care about the W-2 due date. Is this how I need to advise them?

[Burke]

Yes, do the W-2/W3.

[Super Mom]

There is no 941 or state rec. requirements since there are no withholding or FICA right?

[ChEAr$]

Who's son?

I have a son who is under 18 and paid by parent business. How do I show this income? I don't think they did a W-2 b/c no FICA and won't have taxes to pay--it's not 1099 income, it's not business income for him, maybe show in other income or is there a better way?

Any help is greatly appreciated!!!!!!!!!

Above you indicated the "son" worked for you in your business? But then you referred to
parents as "they".

If your son worked for you then you knew this already, right?

On the other hand, you did not indicate what kind of business you are conducting. Are you in the tax
business and operating as a proprietorship? Or with husband operating as a family partnership? In these
two cases you minor son is FICA exempt. But if you are operating as an LLC or corporation, then he was
indeed subject to FICA and would have/should have been included along with your other employees.

[Burke]

There is no 941 or state rec. requirements since there are no withholding or FICA right?

As long as the parent's business was a sole proprietorship, yes.

[AJsTax]

Why LLC?

But if you are operating as an LLC or corporation, then he was
indeed subject to FICA and would have/should have been included along with your other employees.

Why do you include LLC in that statement? In the case of a single Member LLC or a partnership in which both partners are the parent of the child, the exempt rules are in effect. If the LLC elects to be a corporation then the corporation rules are in effect and the child is not exempt.

[ChEAr$]

Because

Why do you include LLC in that statement? In the case of a single Member LLC or a partnership in which both partners are the parent of the child, the exempt rules are in effect. If the LLC elects to be a corporation then the corporation rules are in effect and the child is not exempt.

an LLC is a separate entity and IRS has not ruled on the issue yet that I've heard of.

[AJsTax]

an LLC is a separate entity and IRS has not ruled on the issue yet that I've heard of.

A LLC is classified as a sole-proprietor, partnership or corporation for tax purposes according to the situation of each. I have found nothing to say they do anything other than follow the rules for the entity type they qualify for. The rules state that a single member LLC that has not elected otherwise is a disregarded entity, therefor all rules for a sole proprietor applies.
I understand not all agree with this opinion, as with many issues in taxation and that states may have different rules. LLC is limited liability company, not corporation. We also apply this understanding for the LLCs we issue 1099s for. Just being a LLC does not exempt them from receiving a 1099-misc.
A LLC is not a seperate entity unless they have elected corporate status, or in the limited case now, of having employees.