Professional Tax and Accounting Solutions



Can I employ my child to work in my business?

Posted on October 7, 2018 at 10:50 PM
General rule: According to Texas labor laws it is illegal to employ a child under age 14 except under specific circumstances. Exception: When a business is owned and operated by a parent or legal custodian, they may employ their own children at any age to work as long as the work is non-hazardous AND child works under the parent or custodian's direct supervision. Rules: 1. The child must be an actual employee and work real hours 2. The child must be treated as any other employee (i.e. completion of a W-4, I-9 and other onboarding documents required for other employees. 3. You must withhold income taxes from their pay. What does the IRS say about this? The IRS allows this practice so long as there is legitimate work occurring. See the IRS reference (https://www.irs.gov/businesses/small-businesses-self-employed/family-help)

Categories: Tax Tips