John owns and operates a real estate agency as a sole proprietor.On a full-time basis, he employs his 17-year old daughter as a receptionist and his 22-year old son as a bookkeeper.Both children are subject to FICA withholding.

Question

Quizplus · Accepted Answer

In a sole proprietorship, the wages paid to a child under 18 are not subject to FICA taxes. Therefore, John's 17-year-old daughter would not be subject to FICA withholding, while his 22-year-old son would be.

John Owns and Operates a Real Estate Agency as a Sole