Child as Employee
Child as Employee
You want to staff your company with people who are your friends’ children. You need to be aware of some regulations and tax concerns before employing minors (those under legal maturity). This article discusses the legal and financial implications of employing your children in a business you own.
What Are the Child Labor Laws?
The United States Department of Labor has enacted various laws pertaining to companies with minors working for them. The Fair Labor Standards Act (FLSA), which contains many laws regarding wages and hours worked, is the principal legislation. These rules are intended to shield minors from working situations that are excessively demanding (no more “sweatshops”).
FLSA regulations don’t:
- It should be mandatory for minors to have a work permit or other appropriate working papers.
- Limit the hours’ people over the age of 16 can put in at work or the times of day they can do so.
- Use if no working relationship exists per the Fair Labor Standards Act (if the child is not an employee).
- Call for rest periods, food times, and other perks.
- Limit immorality, bigotry, harassment, and violence (other federal and state laws do).
Work Permits and Age Certifications
Find out how old the child is before considering hiring them as workers. Request some form of identification (a driver’s license, a birth certificate, or something else). You can’t rely on the child to tell you an accurate age when you ask them. You will need to understand the child’s exact age to determine if limits are applicable and to have proof ready in the event an inspection or audit is conducted.
What Are the Employment Restrictions of Children?
The Fair Labor Standards Act (FLSA) establishes that the minimum age for employment is 14, and it restricts the number of hours minors can work under 16.
The Fair Labor Standards Act prohibits, among other things, the employment of minors in dangerous jobs such as driving or operating power equipment. It also contains requirements applicable to particular kinds of work, such as work in agriculture or that requires the operation of motor vehicles. There may be certain exceptions to this rule, such as children working for their parents.
What Are the Benefits and Pay for Children?
- After the first 90 days on the job, the youngster is entitled to the same minimum salary as any other employee. The minimum wage in your state must be paid to your employees regardless of whether or not it is greater than the federal minimum wage.
- You are required to withhold federal and state income taxes, as well as FICA taxes (Social Security and Medicare), from kids, and you are also required to pay your employer part of these taxes, just as you would for any other employee.
- If you work more than 40 hours a week, you must pay overtime according to the same standards that apply to other employees.
- Suppose the minor worker is eligible for any benefits. In that case, you are obligated to offer those benefits and similarly pay for them like any other employee.
- The Fair Labor Standards Act does not compel employers to compensate summer help employees for time off during holidays or vacations; however, some states do.