Do you own a business and employ family members? If so, special tax treatment may apply. For example, if one spouse employs the other, the employed spouse’s wages aren’t subject to federal unemployment tax. The same is true for the wages of a parent employed by a child. In addition, the wages of children under 18 employed by their parents aren’t subject to Social Security and Medicare taxes, if certain conditions apply. Also, spouses who run a business together and share in the profit or losses may elect special tax treatment. We can help you claim all the tax breaks involved in a family business. Here are more details from the IRS. Contact us with questions. © 2019
“Tax Treatment for Family Members Working in the Family Business.” Internal Revenue Service. FS-2019-14, October 2019. https://www.irs.gov/newsroom/tax-treatment-for-family-members-working-in-the-family-business.