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Question for the Money Doctors

Question submitted on Aug 2, 2014.

Question

I have a 14 yr. old son working for a local farmer. He will make approx. $3000 this summer. Is this income taxable to him, what about FICA.. thanks

Answer

He should be getting a W2 from the farmer since he is working for him.    He cannot and should not be paid as an independent contractor.   Accordingly he should be set up on the farmer's payroll.   There will be required FICA and Medicare withholding.   FICA is 6.2% and Medicare is 1.45% of his paycheck.   If this is his only income for 2014, his federal income tax should be zero.

He needs to be on payroll because it is required by law and your son needs the appropriate legal protections provided to employees.   He does not qualify to be an independent contractor, especially since he is not of legal age.   If the farmer refuses, you can get some help from the state Department of Labor and state payroll tax authority.


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