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J
journalsolutions
March 6, 2023
Question

Payroll

  • March 6, 2023
  • 2 replies
  • 0 views

Hello all,

I'm new to QB and this is the first time I'm trying to add someone to payroll. I want to employ my 14year old son and add him to payroll. When registering for payroll QB is asking me for a SUI registration number that I need to get for the DoL. When I call the Department of Labor in CT they say I do not need one as the state of CT does not consider significant other or your own children under the age of 21 as an employee. I cannot move forward with the Payroll process as they keep on asking me for the unemployment identification number. I've been on the phone with several QB representatives that have not helped as they all keep on telling me I need to get that number from the DoL but when I try to register for it from the DoL website they won't let me continue since I mention the employee would be my less than 21year old son. Any workaround as to how to get this done? Thanks. 

2 replies

MichelleBh
MichelleBh
March 6, 2023

I appreciate all your efforts in dealing with this situation, @journalsolutions. No worries, I'm here to help you. 

 

I understand that you'll need to add your son to QuickBooks. I have an idea that might help you move the setup forward. This way, you can get the payroll done as soon as possible.

 

QuickBooks Online Payroll is tax agency compliant. Thus, I advise contacting tax authorities to determine your son's precise tagging classification in QuickBooks.

 

Once it has been confirmed that your son can be added as an independent contractor, follow the steps below:

 

  1. Go to the Payroll menu and select Contractors. 
  2. Click Add a contractor and enter your contractor's info. You can also check the Email this contractor checkbox so your son can fill out the necessary details. 
  3. Hit Add contractor. 

 

To understand who needs 1099, check out this article: Understand which contractors need 1099s.

 

In addition, I'd recommend consulting an accountant or tax advisor to assist you further on this matter. You can visit this link if you don't have one: Find a QuickBooks ProAdvisor - Intuit.

 

Also, check out the articles below to learn how to manage your agency's withholdings, unemployment, and contractors in QuickBooks:

 

 

If there's anything else you need to know about payroll, please let me know here. I'm always available to help. Take care!

J
journalsolutionsAuthor
March 6, 2023

Thank you for the advise. I'll try that.

Fiat Lux - ASIA
Fiat Lux - ASIA
March 6, 2023

@journalsolutions 

Are you allowed to assign him as a freelancer or contractor? You can signup for a separate Melio account for free to integrate with QBO as a workaround.

https://affiliates.meliopayments.com/pricing

 

J
journalsolutionsAuthor
March 6, 2023

I did ask my CPA about paying him as an contractor/1099 below is his response. Would a freelance be considered the same as an independent contractor?

 

That defeats the entire purpose. You pay tax as a sub contractor. The federal government created this and allows it. I've never heard of a state not allowing it.

LieraMarie_A
LieraMarie_A
March 6, 2023

Thanks for getting back to us, @journalsolutions.

 

QuickBooks Online Payroll complies with tax agencies, including the one you mentioned: "...as the state of CT does not consider significant other or your own children under the age of 21 as an employee." I recommend reaching out to them to verify if you can pay your son as an independent contractor. This is to ensure you adhere to their regulations and guidelines. 

 

If they agree, follow these steps to set up his profile:

 

  1. Go to Payroll and then Contractors.
  2. Select Add a contractor
  3. Enter your son's info, or select the Email this contractor checkbox so he can fill it out.
  4. When you're done, select Add contractor.

 

Once done, you can pay him with a paper check or direct deposit. Additionally, to ensure you've got all the information you need, I recommend checking out this article: Connecticut Payroll Tax Compliance. It includes topics about tax forms, withholdings, unemployment, e-file and pay information, general state and agency, and employer registration.

 

The Community is always here to have your back. I hope you have a fantastic day! 

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