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Taxes for 16 year old son in family business California

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  • Taxes for 16 year old son in family business California

    I have a electrical business(sole proprietor) and want to know at what threshold($) I must start paying FICA, SUI and other taxes for my 16 year old son in 2010.

  • #2
    At whatever point you begin paying him as an employee.
    Not everything in America is actionable in a court of law. Please remember that attorneys are in business for profit, and they get paid regardless of whether or not you win or lose.

    I offer my knowledge and experience at no charge, I admit that I am NOT infallible, I am wrong sometimes, hopefully another responder will correct me if that is the case with the answer above, regardless, it is your responsibility to verify any and all information provided.

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    • #3
      Thank you

      Thank you for your quick response. In talking to a fellow tenant it was mentioned about $5,000 could be paid to a child under 18 before all the employment taxes were added on. I was to check this out.

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      • #4
        This sort of question is a "break it up into pieces and solve each piece separately" type of question. I can point you at part of the answer. If we are talking federal law only, then we are talking about the FIT, FICA and FUTA taxes. We are also talking about IRS. Your answers for these taxes only lives in the federal employer's tax guide, publication 15. There is a section on "family employees". I have included a pointer to that section in the publication.
        http://www.irs.gov/publications/p15/...link1000202300

        You also mentioned "SUI and other taxes". SUI is State of Utah, meaning not IRS. You need to find the employer's tax guide for Utah (or whatever Utah calls it). Your state is not my state. I have no knowledge/interest in matters Utah, so you will have to find that one yourself. A Google search against "Utah employer tax guide" might work.

        Regarding "other taxes", you need to figure out exactly what type of other taxes you are taking about (one at a time). Figure out which jurisdiction "owns" those taxes (one at a time). Then see if there are any special rules for family employees. Just because IRS has special rules for family employees does not necessarily mean that anyone else does. No "one size fits all" answers here.
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)

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        • #5
          Thank you and you are right....

          Thank you and you are right each tax must be handled separately. SUI is a California tax also... State Unemployment Insurance. Maybe my question should be "What is the threshold before "ANY" or "First" employment taxes(Fed or Calif) are necessary for a child under 18 working in a family business."

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          • #6
            Originally posted by Terryy View Post
            Thank you and you are right each tax must be handled separately. SUI is a California tax also... State Unemployment Insurance. Maybe my question should be "What is the threshold before "ANY" or "First" employment taxes(Fed or Calif) are necessary for a child under 18 working in a family business."
            If you click on the link that you were provided above, it takes you straight to the information that you need on the federal level.

            Unless someone here practices in CA (and I do not) we are not going to have that information for you nor readily know where to find it.

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