Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
Your requested professional is not online. I would be more than happy to help you.
I also need to know if you own a business, or if this was more of an informal thing where he just helped you around the house
I own the business,
Okay so you own a business and you paid your grandson to work for you. You would need to withhold taxes and issue a W-2. How much this will impact you depends on how much you paid him overall. How much do you think you paid him in wages?
Also, was this for 2012 or did this just happen in 2013?
summer of 2013
OK...that's not very much at all. And it was still this year. You can correct it
how??? thank you
Do you have any other employees?
yes, 6 others
I ask because if you owe less than $2,500 in payroll taxes, you can file quarterly only
but it sounds like you will have to be a monthly payroll depositor.
Well, amend your payroll tax filing for the quarter that he worked for you, and remit the taxes
will there be a penalty?
do I have to submit his payroll hours or just wages?
There may be a slight penalty, but on $1,800 it's not going to be much
Your payroll tax return doesn't list hours...it lists wages
so I can just have my book keeper handle this will he get a w-4 or can I send him a 1099
or does he have to claim anything? He live in Washington state and we are in Oregon
You really should treat him as an employee if you controlled his work. If he's not an independent contractor, he should not be paid on a 1099
Here is some information on correcting the payroll tax return: CLICK HERE
How old was your grandson again?
There's no withholding requirement on those under 18, per publication 926 and there's no withholding requirement for wages under $1,800
So you're good...you don't even need to do anything
that is what I understood to be true from years ago, thank you so much for confirming it for me.
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