Re: Virginia SUTA

I own a small business in Virginia. If I hire my wife or children (21 and 19), are they subject to Suta?

posted

It depends on whether your hire your wife and children as independent contractors or employees.

Independent contractors who are issued a Form 1099-NEC (new this year, it used to be 1099-MISC) are not subject to Virginia state unemployment tax because they are non-employees.

However, if you treat your family members as employees of your small business, then they are subject to State Unemployment Insurance (SUI). All employees, including casual labor, temporary labor, part-time labor, summer help and other types of miscellaneous labor, no matter the amount, are subject to SUI, unless excepted by statue.

See Is casual labor reportable for State Unemployment Insurance (SUI)

TurboTax does not handle the filing of state unemployment insurance forms.

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