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jessimica1984
New Member

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

 
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Accepted Solutions
xmasbaby0
Level 15

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

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.**

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9 Replies
xmasbaby0
Level 15

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

Does Dad give you a W-2?
**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.**
jessimica1984
New Member

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

No
xmasbaby0
Level 15

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

Does he give you a 1099Misc?
**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.**
jessimica1984
New Member

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

They type out what they call a 1099....but it’s not actually on a form. I’m just confused on the 1099-misc since it says for self-employment.
VolvoGirl
Level 15

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

If you are doing the accounting you should know if you are an employee or an independent contractor.  And you should be the one filling out the W2 or 1099Misc.  Sounds like you are an employee and should be sending in the quarterly payroll reports.  Does he pay other employees on W2?

Here is a Turbo Tax FAQ Are you an employee or self employed?
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2584365-am-i-an-employee-or-an-independent-contractor">https://ttl...>

Here is an IRS website to help you determine if you should be paying someone as  an employee or independent contractor…
<a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...>
 
jessimica1984
New Member

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

It’s jut me and my brother. My brother does labor and I do office work. They just give totals and my brother takes his to a tax preparer and they handle it. I’ve just always done my own. I’m 35 so I don’t think I qualify as a minor....unfortunately.???
xmasbaby0
Level 15

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

Nope--you are not a minor!  So you are getting a 1099Misc.  That 1099Misc is also supposed to be reported by Dad to the IRS so he can use it as a business expense.    That means the IRS has a record of the amounts that were paid to you and your brother.

So you are "self-employed."  What have you been doing for previous years when you filed your tax returns?
**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.**
xmasbaby0
Level 15

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

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.**

View solution in original post

TaxGuyBill
Level 9

I work for my father who owns his own business. I handle all accounting and office work for him. I am paid a salary. What form do I need to use for this?

Although your father is trying to treat you as an Independent Contractor (self employed), in reality you are probably classified as an Employee.  Your father should consult with a tax professional about this, as misclassifying employees can lead to large penalties.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/understanding-employee-vs-contractor-designation">https://www.irs.gov/n...>
<a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...>
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