Family Employees
Family members employed by a sole proprietor or a partnership may be eligible for special tax treatment.
Sole Proprietor
| Relationship to Sole Proprietor (Owner) | Exempt From | Taxable For |
|
Spouse of |
FUTA | FICA Withholding |
| Child of | FICA - until age 18 FUTA - until age 21 |
Income Tax Withholding |
|
Parent of |
FUTA | FICA Income Tax Withholding |
Partnership
| Relationship to Partner | Exempt From | Taxable For |
|
Spouse of |
N/A | FICA FUTA Withholding |
| Child of both partners | FICA - until age 18 FUTA - until age 21 |
Income Tax Withholding |
|
Parent of |
FUTA | FICA Income Tax Withholding |
There may also be special tax treatment for household employers who employ family members.
Refer to IRS publication 926: Household Employer's Tax Guide for additional information.