Can a child pay a parent for any work so that pare...
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New Member

Can a child pay a parent for any work so that parent can earn SSA credits?

Hello. My father (62 y.o.) lives with us ( myself, my husband, and our 2 kids). He needs to earn 4 more SSA credits in order to qualify for the SS benefits once he retires. I wonder if I, the daughter, can hire him to do any kind of work for me so that he can claim self-employment and pay SS and Medicare taxes. I have read that babysitting services are not going to qualify as taxable wages under the SS and Medicare tax. But will any other services qualify? Or will my dad have to find work outside of the household in order to earn SS credits? Thank you

2 Replies
Employee Tax Expert

Can a child pay a parent for any work so that parent can earn SSA credits?

No. The only two possibilities are as a Household Worker of if you have a business.

 

This may be the household worker info that you are referring to from TomD8:

 

You don't pay Medicare and Social Security taxes on wages paid to your parent unless BOTH of the following conditions apply:

 

Condition One

Your parent cares for your child who is either of the following;

      1. Under the age of 18;

       2. Has a physical or mental condition that requires the personal care of an adult for at least 4 continuous weeks in the calendar quarter services were performed.

 

Condition Two:

 Your marital status is one of the following:

          1.  You're divorced and haven't remarried

          2.  You're a widow or widower

          3.  You're living with a spouse whose physical or mental condition prevents him or her from caring for your child for at least 4 continuous weeks in the calendar quarter services were performed.

 

PUB 926

 

You would otherwise have to have a business that pays him.

 

When the employer is a son or daughter employing his or her parent the following rules apply.

  • Payments for the services of a parent in the son’s or daughter’s (the employer’s) trade or business are subject to income tax withholding and social security and Medicare taxes.
  • Payments for the services of a parent not in the son’s or daughter’s (the employer’s) trade or business are generally not subject to social security and Medicare taxes.

PUB 15

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New Member

Can a child pay a parent for any work so that parent can earn SSA credits?

Thank you,  it was helpful. 

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