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 www.aipb.org
- Youth & Labor, United States Department of Labor. Retrieved from https://www.dol.gov/general/topic/youthlabor