Hello and thank you for using Just Answer,If they have $19,500 of combined income they are required to file a tax return. Social Security taxes are not refunded like income taxes.If you pay a household employee cash wages of more than the amount specified by law in a tax year ($1,800 for 2012 and 2013), you generally must withhold social security and Medicare taxes from all cash wages you pay to that employee. (Cash wages include wages you pay by check, money order, etc.) Unless you prefer to pay your employee's share of social security and Medicare taxes from your own funds, you should withhold 7.65 percent from each payment of cash wages made.
You will not need to pay FUTA on the wages to your parent. FUTA is unemployment tax.
I suggest you read this publicationhttp://www.irs.gov/pub/irs-pdf/p926.pdf
It will be most helpful for your obligations.
Thanks for your reply and advise.
To clarify, my parents will be employed by my ice-cream retail store. It is a separate S-corporation. My parents employment will show work at store; not my house hold work.
Would all above points in your reply still apply to thsi situation? considering they will be employed for my s-corporation (legal entity for retail store of ice cream store). Thanks
Last question, their income would be about $12,000 per year ($6K each).
Would they pay any income tax?