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How can I complete my employed, under 18 yo, child's W2 that will not allow $0 under SS and Medicare withholdings?

Forum|Forum|7 years ago
June 4, 2019
6 replies
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TT will not allow me to create a W2 for my children that I employed under my LLC with $0 listed under SS and Medicare withholdings, despite their exempt status based on age and income less than $600.00 for the year.

TurboTax Home & Biz Windows

Best answer by MinhT1

If your LLC is owned by you and your spouse and your child is under 18, you do not need to withhold FICA taxes (Social security and Medicare).

To create the W-2 without FICA withholding, uncheck the check mark next to "Uncheck to disable auto-calculate" as by default this is checked. You enter 0 as Social Security wages and 0 as Medicare wages. You can then enter 0 for both Social security and Medicare withholdings and the program will accept it.

Edited 01.11.18 | 4:00 PM

S

SweetieJean

Employee

Did they do bonafide work for the LLC?

S

SweetieJean

Employee

The wages for the services of a child are subject to income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for a corporation, even if it is controlled by the child's parent.

Hal_Al

Employee

Are you filling out the W-2 in TurboTax Business or using Quick Employer Forms (QEF) in TT Home & Biz?

S

SweetieJean

Employee

Is your LLC taxed as an S Corp?

S

spaldscAuthor

Yes, they do bonafide and documented work for the LLC. I am filling out the W-2 forms in Quick Employer Forms - this is the link from TT Home and Biz. My LLC is not an S Corp, partnership with my wife as sole owners of the LLC.

M

MinhT1Answer

If your LLC is owned by you and your spouse and your child is under 18, you do not need to withhold FICA taxes (Social security and Medicare).

To create the W-2 without FICA withholding, uncheck the check mark next to "Uncheck to disable auto-calculate" as by default this is checked. You enter 0 as Social Security wages and 0 as Medicare wages. You can then enter 0 for both Social security and Medicare withholdings and the program will accept it.

Edited 01.11.18 | 4:00 PM

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