Michael is an excellent baseball player and works well with the younger RBI clie
ID: 2584633 • Letter: M
Question
Michael is an excellent baseball player and works well with the younger RBI clients. Mike is considering hiring Michael to provide lessons during the busier periods, which occur just before baseball season and during baseball season. This period lasts about four months. Which of the following statements is correct?
Mike could hire Michael and pay him at the same rate as the other coaches. Mike would not have to withhold FICA from his paycheck, nor would he, as the employer, have to pay FICA on Michael’s earnings, because Michael is under the age of 18 and working for his parents.Explanation / Answer
Answer: Mime could hire Michael and pay him. Assuming Michael worked for 10 to 12 hours per week during the four month busy season and was paid at the same rate as the other coaches, Michael would have to file a federal income tax returns (assuming no other income).