spaldsc
New Member

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

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.

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Did they do bonafide work for the LLC?

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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
Level 15

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

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Is your LLC taxed as an S Corp?
spaldsc
New Member

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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.
MinhT
Expert Alumni

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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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View solution in original post

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OP hired his own children.  If your child is under 18, you don’t have to withhold or pay any FICA (Social Security or Medicare) tax on the salary, subject to a couple of exceptions
. <a rel="nofollow" target="_blank" href="https://www.nolo.com/legal-encyclopedia/why-its-tax-smart-hire-your-children.html">https://www.nolo....>

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<a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/family-help">https://www.irs.gov/busin...>
But OP has not indicated if the LLC is an S Corp.
MinhT
Expert Alumni

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Please see my edited answer on how to create the W-2 in TurboTax.
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Also note that the Partnership return Form 1065 requires the use of TT Business (not Home and Business).