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Sole Proprietor Hiring Family


(@sherryw)
Joined: 2 years ago
Posts: 0
Topic starter  

I have a customer who is a Sole Proprietor and wants to hire his dad and 17 year old son. He also wants to start paying himself a salary oppose to taking multiple owner's draws from his account. What Payroll taxes will he be responsible for having family has employees?  His dad and son wouldn't be a consistent payroll just when he needs them.  Will he need to pay Workman's Comp fee and Workman's Comp Insurance as well since there is 3 people being employed? 


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(@casey-4)
Joined: 2 years ago
Posts: 0
 

Sole Props don't take payroll, they just take draws.  All normal payroll taxes for both state and federal will need to be paid for father and son.


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(@sherryw)
Joined: 2 years ago
Posts: 0
Topic starter  

Could be pay himself a paycheck to cover his self-employment tax in the year?


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(@casey-4)
Joined: 2 years ago
Posts: 0
 

No, he should be paying quarterly 1040 ES taxes.  He then  files a Schedule C, and calculates his SE Tax.  


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