1099 is sole pri
1099 indicates child has his/her own sole proprietorship.
https://www.irs.gov/businesses/small-businesses-self-employed/family-help
Parents employed by their child
If the business is a child’s sole proprietorship:
- Payments for services of a parent are subject to income tax withholding, social security taxes and Medicare taxes.
- Payments for services of a parent are not subject to FUTA tax regardless of the type of services provided.
