paying retired parents under s corp who get social security benefits

[gimmekimmy]

my mom has helped me with payroll and accounting this year for our s corp so we want to add her to payroll and pay her for her help. she is retired, she's 68, and she currently receives social security. we will not be paying her over the standard deduction so she will not be close to the income limit for social security. when we set up her payroll, is she exempt? she won't be filing taxes so she shouldn't have any taken out, correct?

[Bsch4477]

If she has no filing requirement she doesn’t have file or have tax withheld. 

[xmasbaby0]

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

[xmasbaby0]

You still have to withhold Social Security and Medicare from your mom's paychecks, even if she will not need to file a tax return.   She is never exempt from having to pay into SS or Medicare if she is working.

[xmasbaby0]

Are you paying her as a W-2 employee?   Or as an independent contractor?   If you pay her as an independent contractor she will have to file a tax return and pay self-employment tax for Social Security and Medicare.   Please clarify how you are paying your mother and what tax document you plan to issue to her.

[VolvoGirl]

But you will have to take out SS and Medicare taxes (FICA) even though she is already getting SS and even if she will not owe income tax on the wages.  

[gimmekimmy]

we would pay her as w2

[xmasbaby0]

Okay......then her W-2 will need to show amounts withheld for Social Security and Medicare.