Summer Hiring – Rules for 2009

Construction News, IRS Information, Payroll Tips
From the May 2009 issue of the General Ledger. Firms owned by parents that employ their children. Owners’ children can work for the firm, regardless of age, number of hours worked or time of day—if the parent(s) own 100% of the business. Children under 16 cannot do hazardous work such as use lawn mowers, sewing machines, etc., work where food is cooked, or work near flammable or hazardous material. Minimum wage: 100% of owners hiring only immediate family members need not pay the minimum wage. But if owners regularly employ nonfamily members, they must pay even family members the minimum wage. Owners’ children under 21: Wages are exempt from FUTA. Owners’ children under 18: Wages are exempt from FICA—if the parents are sole owners or sole partners—but FIT must be…
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