Tax & Financial Tips Archive
[Back to Archive]


Date: May 12, 2011
Subject: G&G Tax Tip: Payroll Service Improperly Took Taxes on Child Hire

This is
G&G Associates Tax & Financial Consulting

Payroll Service Improperly Took Taxes on Child Hire

Imhotep (Wisdom to You) G&G Readers,

Question: Our payroll service took FICA, Medicare, and unemployment taxes on the wages I paid my 15-year-old child.

When I told them the child is exempt from payroll taxes, the service person told me that was incorrect. You said that the child wage was exempt. Who is right?

This is
G&G Associates Tax & Financial Consulting

Will display ads on my car eliminate commuting?

Imhotep (Wisdom to You) G&G Readers,

I get this question about once every two or three months:

Question: Will the advertising wrap I just put on my vehicle eliminate my commuting to the office?

You've seen these vehicles. They look like moving billboards on steroids.

If one of these advertising wrapped vehicles is parked in the grocery store parking lot, you may want to, but you can't miss it.

So the question is: If you have your vehicle wrapped to advertise your business, will the wrapping eliminate that personal mileage known as commuting?
See below for the answer:

Internal Sponsorship:

G & G Associates is a Black-Owned Business focused on easing our client's minds on tax compliance matters. With the ever changing and burdensome tax code, overwhelming and confusing federal and state tax forms and increasing IRS scrutiny over most tax items, taxpayers need to have at least this one part of their lives made easier, less stressful and more profitable.

Our expert help includes our:

In-Depth Interview — a thorough and complete experience designed to unearth every tax savings opportunity during the course of your tax preparation. We use these to the latest IRS guidelines to guide you through a painless, interactive session so that together, we catch every single detail that results in more tax savings for you.

We can service clients anywhere in the world and we look forward to assisting you in getting your tax return prepared for the 2010 and beyond tax season. (Referrals available upon request)

If you are a returning client you'll get a 25% discount off your tax preparation fees. If you are a new client you'll get $40 off our normal fees. If you are active duty military you'll get a 15% discount. If you are a senior citizen (above 65) you'll get a 50% discount.

At G&G Associates, we GUARANTEE to beat "ANY" other tax professional’s fees. We take pride in not nickeling and diming our customers with unnecessary charges & fees.

Do you have a friend, co-worker or family member who might be interested in G&G Associates Tax Preparation Services? If so, then you can earn $40 for everyone you refer that files their tax returns with us. Just refer that person, and when we complete their tax return we will send you a check for $40. To make the deal even sweeter, after (4) four referrals you will get your taxes done for free.

For INSTRUCTIONS on how to get your taxes prepared visit our website, click on the "TAXES" tab and then download the "Tax Preparation Worksheet," or the left side of the page or click on the following link:


So who is right?
Answer: We are.

Go to page 9 of IRS Publication 15, (Circular E) Employers Tax Guide, and you will find on that page that wages paid by the parent to a child under the age of 18 are exempt from FICA and Medicare taxes.

You will also find that wages paid by a parent to a child under the age of 21 are exempt from federal unemployment taxes.

Your next step is to make a copy of page 9 and send it to the payroll service.

You have to think that your payroll service is pathetic. They should know the rule. After all, you brought it to their attention.

But the mistake you encountered is pretty common. Payroll services don't run into unusual transactions very often, so they often don't know the unusual rules. Then you get this typical response: "Never heard of that!"

Visit our website for more information or contact us today to set your appointment if you need a tax or financial one-on-one consultation.

Until the next time!

Ankh Uja Snb (Life, Strength, & Health),

Asar Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
757-251-0174 office
866-361-3872 toll free fax
G&G Associates & G&G Travel are on Facebook, join our fan page.

**You must be a G&G Associates tax client to receive the $40 referral fee

*** [Price Guarantee does not apply to individuals, corporations or partnerships filing refunds pertaining to Revenue Ruling 2009-20/2009-09, ‘Ponzi Schemes’ or VA Amendment CFR 26 § 1.122-1]

P.S. If you're not a GGIS Paid Subscriber reader yet, why not? Currently, our GGIS portfolio is packed with great plays to kick-start your portfolio for 2011.

P.S #2 If you are looking to Travel and looking for steep discounted travel, visit, click on the “G&G Travel” link and let your travel planning begin. Let us know where you want to go and we’ll do our best to find you the best deal your money can buy. Become a Fan of G&G Travel on facebook.


Tax & Financial Tips Archive
[Back to Archive]