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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.

1 Best answer

Accepted Solutions
MinhT
Expert Alumni

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

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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10 Replies
SweetieJean
Level 15

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

Did they do bonafide work for the LLC?
SweetieJean
Level 15

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

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

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

Are you filling out the W-2 in TurboTax Business or using Quick Employer Forms (QEF) in TT Home & Biz?
SweetieJean
Level 15

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

Is your LLC taxed as an S Corp?
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?

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

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

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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SweetieJean
Level 15

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

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....>
SweetieJean
Level 15

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

<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

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

Please see my edited answer on how to create the W-2 in TurboTax.
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SweetieJean
Level 15

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

Also note that the Partnership return Form 1065 requires the use of TT Business (not Home and Business).
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