Is a child working for his father's corporation exempt from coverage under FICA?

The correct choice is that a child working for their father's corporation is not exempt from coverage under FICA. Under the Federal Insurance Contributions Act (FICA), wages paid to employees are subject to Social Security and Medicare taxes, regardless of the familial relationship.

It's important to note that FICA applies broadly to all employees, and this includes children working for their parents' businesses. Although there are some specific exemptions for family employment in certain contexts, such as agricultural work or domestic work, generally a child employed by their parent in a corporation does not fall under those exceptions. Therefore, the wages earned by that child would still be subject to FICA tax, ensuring contributions are made to Social Security and Medicare programs.

The other options suggest circumstances or conditions that do not align with FICA's broad application regarding familial employment, thus they do not accurately portray the tax obligations for a child employee in a corporation owned by a parent.