Clarification on Chapter 7 of "Mastering Payroll"
Page 113 of the most recent books states "Employers exempt from FUTA tax include not-for-profit organizations, federal, state, and local government entities, certain household employers, certain agricultural employers, and sole proprietorships that employ family members. Also, certain work performed for a child or spouse, or by a child under age 21 for a parent, is exempt from FUTA."
Where does that chapter state that a parent working for their child is exempt from FUTA in all cases? It says "certain" work, which I assumed was "certain" work, not all work.
And if you own a sole proprietorship and employ your child who is 25, doesn't that fall under the umbrella of "employing family members" and so that child's wages would be exempt from FUTA BASED ON THE WORDING IN THE TEXTBOOK?
It is confusing. Very confusing.
How about simplifying it with: " and if your business is a sole proprietorship or a partnership owned by you and your spouse—not a corporation, FUTA taxes do not need to be paid for your children under the age of 21, for your spouse, or for your parents who are working for you in your business."
Does that cover all the bases? I'm studying and pulling my hair out (what little hair I have left at my age) trying to understand some of the text in the textbook like the above, for example. Maybe there's something I don't grasp, so I'm posting it here.
Another example is Problem 4 on page 131 of "Mastering Payroll" that gives an example of when Edna must receive her W-2 for 2019 if she terminates on August 29 and requests her W-2 on that date. The answer the book gives is September 29. Well, 30 days from August 29 is September 28, not 29. But both the 28th and 29th are a Saturday and Sunday, respectively, so wouldn't the date it has to be postmarked be Monday, September 30th?
I'm just trying to understand the text, and the laws. Thanks.
Another typo, it would appear, in the "Mastering Payroll" textbook on page 164, Chapter 10. It shows a payroll register and below that an employee payroll record for Robert Smith. Note that for pay period ending 1/4/19 on his payroll record the numbers have been shifted one column to the left. The "Regular Pay" column shows the "Over Time Pay", the "Gross Pay" column shows the "FITW" column, etc.