McMahon Bookkeeping and Administrative Services

Summer is approaching soon and you are anticipating the traffic. Most business’s hire extra staff to keep up with the Summer time shoppers for their business. Hiring a staff can be complicated if you are not aware of the hiring rules.

Here we will go over the different Federal rules and regulations that a parent-owned sole proprietorship or partnership business that are hiring their own children and for all other employers.

If your business is 100% owned as a sole proprietorship or partnership and you are planning on hiring your children, here are some rules to consider:

·         Children of the owner can work any number of hours or times during the day, regardless of their age.

·         If under 16, they cannot complete any hazardous work such as operate a lawn mower, sewing machines, work near flammable or hazardous materials or cook food.

·         If the owners child is under 21 years of age:

o   Wages are exempt from FUTA.

·         If your child is under 18 years of age:

o   Children are exempt from FICA

o   If not your child, but under 18 years of age, obtain the child’s age certificate recognized by the Department of Labor (DOL) and your state Wage and Hour Division. Return it to the worker at termination.

o   The child worker may not do hazardous work.

·         Child workers of 14 – 15 years of age and NOT your child:

o   Can work 8 hours a day, 40 hours a week, June 1rst to Labor Day only between the hours of 7 am – 9 pm if out of the school session season.

·         Child workers under 14:

o   Cannot work if they are not hired by their parent who is the owner of the business.

Enjoy the summer and your business! Hiring your child can be done and it can be a bonding experience as well by having your child work side by side with you.