Minor Children as Employees

[Teri2414]

I know with all the early problems going with the software and e-file it's probably a bad time to ask advice, but I need to plan for the first quarter (I think). Unfortunately, when I was cleaning for this season I packed away the books I had from seminars 2 years ago that covered employing your children. My daughter has worked for me for a couple of years during the season. I've always done the 945 and W-2'd accordingly (believe I saw a post about this last year somewhere). Never a problem. She is turning 18 this year although will still be high school until June 2011 and will be living here. Do I need to change to regular payroll for her this year?

[Lynn EA USTCP in Louisiana]

I know with all the early problems going with the software and e-file it's probably a bad time to ask advice, but I need to plan for the first quarter (I think). Unfortunately, when I was cleaning for this season I packed away the books I had from seminars 2 years ago that covered employing your children. My daughter has worked for me for a couple of years during the season. I've always done the 945 and W-2'd accordingly (believe I saw a post about this last year somewhere). Never a problem. She is turning 18 this year although will still be high school until June 2011 and will be living here. Do I need to change to regular payroll for her this year?

My off the cuff (i.e. unresearched) answer is YES, you do need to change the payroll as once she becomes 18 she will be subject to the FICA/Medicare withholding requirements.

Lynn Jacobs, EA, NP

Kenner, LA

[Gail in Virginia]

However, she will still not be subject to unemployment tax until age 21 (at least Federal, and not in the state of Virginia).

[Teri2414]

Thanks guys - that's what I thought and I know I'll have to double check WI rules as well. I think I was just having a brain fart as she looked at me yesterday and said "Do you the money I earned last weekend".....LOL

[jainen]

>>she looked at me yesterday and said "Do you the money I earned last weekend".<<

Before responding, I would be interested in knowing which words you couldn't bring yourself to type, right before "the money."

[Teri2414]

Oops....I guess I was thinking faster than I could type...the word would be 'have'.

[OldJack]

It would have been nice of her if the word had been "keep".