How do I de-activate deduction for social security and medicare from paycheck for my children under 18 years?
Let's set up your children's profiles in QuickBooks Online, lovina-lktech-or.
According to the IRS, "Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child." More details about this are discussed here: Family Help.
We can set up their profiles as Exempted from taxes. Here how to do it:
Select Workers in the left menu and go to the Employees tab.
Click Add an employee if you haven't created their profiles. Or you can click their names if their profile already existed.
Click the Edit Employee button for the existing profiles. You can go to Step 4 if you're still setting up their information.
Remove the check mark in the Ask this employee to enter their personal, tax (2020 W-4).... box. and go to the What are this employee's withholdings? section.
Under the Federal filing status, select Exempt.
Go to the Tax exemptions and mark the Social Security and Medicare box.
Mark other boxes if necessary.