Marie Posted January 28, 2023 Report Posted January 28, 2023 Can an employer use his ss# on W-2's? instead of getting an EIN There is no withholding and no fica - child under 18 Quote
Gail in Virginia Posted January 28, 2023 Report Posted January 28, 2023 I don't think so. I think it used to be allowed many, many years ago but I believe you need an EIN now. Although the fact that there are absolutely no taxes being reported makes me wonder.... 1 Quote
Sara EA Posted January 29, 2023 Report Posted January 29, 2023 He should just apply for an EIN--it's easy enough to do. Best argument in favor is that he won't have to give his SS number to clients. Operating without an EIN makes me wonder if his business banking is combined with his personal, which is a big No No! 6 Quote
mcbreck Posted January 29, 2023 Report Posted January 29, 2023 If you are a sole proprietor you are no longer allowed to use your SSN once you have employees. It isn't illegal to merge your personal banking and business if you are a sole proprietor. If no taxes are withheld and it's for their child - should it be a 1099? 1 Quote
Lion EA Posted January 29, 2023 Report Posted January 29, 2023 W-2 for the child or else he'll pay SE tax. And, he's not an independent contractor if his only work is for his parent's business using the exclusion from FICA for a child of the owner. 2 Quote
Lee B Posted January 29, 2023 Report Posted January 29, 2023 31 minutes ago, Lion EA said: W-2 for the child or else he'll pay SE tax. And, he's not an independent contractor if his only work is for his parent's business using the exclusion from FICA for a child of the owner. Even if the child works for 1 or 2 other people it's highly unlikely the child is an independent contractor. In several of the Employment Tax Audits that I have been involved, the auditor did extensive on line search in the state and other databases looking for confirmation that the individual in question was actually in business . 1 Quote
Sara EA Posted January 30, 2023 Report Posted January 30, 2023 Of course it's not illegal to merge personal and business accounts, but it sure creates an accounting and tax audit nightmare. Was that gas fill up for the business van or the wife's car? The trip to Staples for back-to-school supplies or office copy paper? We have clients whose monthly bank statements are four single spaced pages of everything from morning coffee to bars to the occasional business website bill. Their reconciliations cost a lot because they take so much time. Also makes it impossible to tell how much money you're making or spending--should you raise prices, buy that new piece of equipment? 3 Quote
Lee B Posted January 30, 2023 Report Posted January 30, 2023 “If you don't know where you are going, you'll end up someplace else.” ― Yogi Berra 1 Quote
Marie Posted January 30, 2023 Author Report Posted January 30, 2023 GOT AN EIN, SO i WILL USE THAT 1 Quote
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