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Employee Under 18


Edsel

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Taxpayer wants to employ grandchild who turns 18 during year.  His birthday is June 1.  Until June 1st he is paid $2500, and he is paid $3000 on payrolls after June 1.

Which of the following are true for his W-2 wages?

  1. His Total wages are $5500, and $3000 is taxable for Social Security Wages.
  2. His Total wages are $5500, and $5500 is taxable for Social Security Wages.  Turning 18 at any time during the year is construed as turning 18 on January 1 of that year for social security wage purposes.
  3. His Total wages are $5500, and  $ 0 is taxable for Social Security Wages.  Turning 18 at any time during the year is construed as turning 18 on January 1 of the succeeding year for social security wage purposes.
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Medlin is correct IF this isn't for household help.  The employer isn't the child's parent, so that rule wouldn't apply and the entire $5,500 would be taxable for SS and Medicare.

However, IF this is for household help, see the rules on this page that detail the age issue regarding SS/Medicare withholding:  https://www.irs.gov/taxtopics/tc756

 

 

 

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"I learn something new every day."

I try as well.  I had not thought about household help, as it is not something I run across often.  One of my umpire mentors always said it is better to be on the way up - the two choices were to be on the way up (learning), or on the way down (not learning)...

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