If your father is not withholding income tax, Social Security or Medicare, then you are considered to be "self-employed" by the IRS. That means that you pay self employment tax of 15.3% for Social Security and Medicare, as well as any ordinary income tax on your wages.
When an employee receives a W-2, the employer pays half of the Social Security and Medicare and withholds federal and state tax from your pay. The other half of SS and Medicare--your part--is withheld from your pay, too.
Is this your first year to work for your father? How old are you? There are some special rules for minor children who work for parents.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
