Whether it’s during the Summer, Fall, Winter or Spring, the rules apply regardless of the time of year.  Here are some key tips to remember if your parents own 100% of the business.  This does not include aunts, uncles, cousins, etc.

1. Parents cannot skirt the law for those children under the age of 16 when it comes to hazardous work.  No it’s not just handling nuclear waste, but also includes: sewing machines, lawn mowing, cooking food, anything with fire, etc.

2. Minimum wage is not required for immediate family members who are children of the owners unless you employ nonfamily members.  Then everyone gets treated equally.

3. Only children under the age of 14 can be hired by their parents under the 100% business rule.

4. Children are exempt from federal withholding taxes up until age 18 and exempt from FUTA up until age 21.  However you must still file W-2’s for each child.

5. If you choose to hire other children under age 18 who are not immediate family, you must receive an age ceritficate from the US Department of Labor and your state Wage and Hour Division and return it to the workers upon termination.  These children are still exempt from working hazardous employment work.

6. Finally, outside children, ages 14-15, cannot work more than 8 hours per day, 40 hours per week, from June 1st through Labor day of each year, between 7AM and 9PM, if their school is not in session.  The only exceptions are: newspaper delivery or children employed by their parents under the 100% business rule.

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Dwayne J. Briscoe, Owner
Bookkeeping-Results, LLC
Dwayne@bookkeeping-results.com