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December 5, 2022
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Do I need to set up my minor child as an employee?

  • December 5, 2022
  • 1 reply
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My minor child is homeschooled, but I bring him to work with me so he can learn that trade as a part of his curriculum for the school.  He gets compensated for the time and helps he gives on some of my jobs.  Do I need to list him as an employee and select him to be exempt from SS taxes?  Or can I just list his expense as a "commission".  

Best answer by JaeAnnC

Pleased to have you here in the Community, Bryan!

 

I've got you covered in setting up your minor child for payroll and exempting him from taxes in QuickBooks Online (QBO).

 

First, we'll have to identify if your child can be listed as an employee. To accomplish that, I'd suggest consulting your accountant or tax advisor. They'll be able to know if your child fits the description of an employee. You may also reach out to them if you need advice about listing his expenses as a commission in QBO.

 

Once confirmed, you can mark him as tax-exempt in the employee's profile. I'll guide you on how:

 

  1. Go to Payroll and select Employees.
  2. Select your child's name.
  3. Click Edit in the Tax withholding section.
  4. From the Tax exemptions dropdown, check the box for Social Security and Medicare.
  5. Click Save.

 

Moreover, there are state and federal restrictions on hiring under-18 employees. That said, you can refer to this article for legal procedures: Legal Guidelines for Hiring Under-18 Workers

 

You'll also want to set up auto payroll in QBO. This way, you'll be able to schedule your payroll to run automatically, which helps you save time.

 

Please don't hesitate to swing by the Community if you need further assistance setting up payroll for your employees. I'd be glad to help you out. Keep safe!

1 reply

JaeAnnC
JaeAnnCAnswer
December 5, 2022

Pleased to have you here in the Community, Bryan!

 

I've got you covered in setting up your minor child for payroll and exempting him from taxes in QuickBooks Online (QBO).

 

First, we'll have to identify if your child can be listed as an employee. To accomplish that, I'd suggest consulting your accountant or tax advisor. They'll be able to know if your child fits the description of an employee. You may also reach out to them if you need advice about listing his expenses as a commission in QBO.

 

Once confirmed, you can mark him as tax-exempt in the employee's profile. I'll guide you on how:

 

  1. Go to Payroll and select Employees.
  2. Select your child's name.
  3. Click Edit in the Tax withholding section.
  4. From the Tax exemptions dropdown, check the box for Social Security and Medicare.
  5. Click Save.

 

Moreover, there are state and federal restrictions on hiring under-18 employees. That said, you can refer to this article for legal procedures: Legal Guidelines for Hiring Under-18 Workers

 

You'll also want to set up auto payroll in QBO. This way, you'll be able to schedule your payroll to run automatically, which helps you save time.

 

Please don't hesitate to swing by the Community if you need further assistance setting up payroll for your employees. I'd be glad to help you out. Keep safe!

May 13, 2024

Hi I know this is two years later but I've been trying to follow these instructions but I am not finding a section for any tax information at all. I'm only given the option to include personal information and employment details. What am I not understanding about the process?

JenoP
May 13, 2024

Hi there, Stacey. 

 

Can you tell us if you have a payroll subscription if your QBO account? The view and option to enter tax information depends if you have payroll subscription or not.

 

Please reply back to us to share more details. We'll get back to you as soon as we have more information.