Sole Proprietor Hiring Family
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?
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.
Could be pay himself a paycheck to cover his self-employment tax in the year?
No, he should be paying quarterly 1040 ES taxes. He then files a Schedule C, and calculates his SE Tax.