Oh you messed up ... you had to pay the kids as EMPLOYEES and issue them W-2 forms to get the FICA taxes waived. Since you paid them as independent contractors on form 1099-misc then the program handled it correctly.
"Child employed by parents. Payments for the services of a child under age 18 aren't subject to Social Security and Medicare taxes, if the business is a sole proprietorship or a partnership in which each partner is a parent of the child. Payments to a child under age 21 aren't subject to FUTA. Payments are subject to income tax withholding, regardless of the child's age." https://www.irs.gov/pub/irs-pdf/p15.pdf
