the member of the S corp family does not have a PTIN.

The family member is on the payroll as an employee of the S corp but I believe, if I am reading it correctly, he is not considered a paid preparer per section (f): Persons who are not tax return preparers:

26 CFR § 301.7701-15

(ix) An individual preparing a return or claim for refund of a taxpayer, or an officer, a general partner, member, shareholder, or employee of a taxpayer, by whom the individual is regularly and continuously employed or compensated or in which the individual is a general partner.