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Are you hiring a child to work for you during the summer?  Here are a few federal rules and regulations to be aware of:

Parent/Owners Children – Thinking about hiring your own child? 

  • Can work any number of hours during the day
  • Cannot conduct hazardous work, work near flammable or hazardous materials, or where food is cooked if under 16 years old.
  • Is not required to be paid minimum wage
  • Wages for children under 21 are exempt from FUTA
  • Children under 18 are exempt from FICA

Workers who are not owner’s children

  • Children under 14 cannot be hired unless they work for parent/sole owner.
  • Children ages 14-15 can work 8 hrs per day, up to 40 hrs per week, beginning on June 1st through Labor Day, between the hours of 7 a.m. and 9 p.m, as long as school is not in session. **The exception is news carriers or children who are employed by parent/owner. 
  • Children under 18 may not do hazardous work

Employment Tax Rules

  • You should obtain W-4’s from all employees whether they be an owner’s child, students working part-time or foreign exchange students. 
  • Withhold Federal Income Tax from all employees unless they claim exempt.
  • Withhold Medicare and Social Security Taxes (FICA) even for high school students, and those who are receiving social security benefits.  **The exception is an owner’s child who is under 18. 

If you would like help setting up these type of employees on your QuickBooks payroll program, contact our office to arrange for an appointment.  


- 2017 Summer Hiring Rules, The General Ledger -The complete newsletter for Professional Bookkeepers. (Volume 34, Number 5, May 2017). Retrieved from

- Youth & Labor, United States Department of Labor. Retrieved from

Small Business owners want and need to spend time growing their business, but oftentimes that means they are not keeping their bookkeeping up to date or keeping good records.  This can be a costly mistake!  IRS auditors could discover that the business has inadequate records and will use the bank deposit method to estimate gross income.  This could be a huge nightmare for a company as this method presumes that all monies deposited into the bank is income and the burden of proof is on the company’s owner to prove that it is not.

As an example, a company may have received proceeds from a loan that was deposited in the bank.  Loan proceeds really aren’t income but would be considered as such if the company could not prove otherwise.  Without evidence and up-to-date bookkeeping, the deposited amounts would be added to gross income and taxed as such. 

As an owner of a small business you should be spending time growing your business.  However, if you are finding it hard to fit in the necessary time to keep up with your bookkeeping, let Ace Business Solutions do that for you.  Ace Business Solutions has several different bookkeeping options that will ensure you have adequate and timely records to help keep your business in compliance with federal and state laws.   “Help your business grow with ACE in the Hole!” 

“Bookkeeping Management”, The General Ledger -The complete newsletter for Professional Bookkeepers. (Volume 34, Number 5, May 2017). Retrieved from


ACE Business Solutions
3308 Fort Worth Hwy
Hudson Oaks, TX 76087



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