Are you planning to hire temporary workers for the summer? Are you a parent and own 100% of your business? If so, it is imperative that you know the rules for summer hiring.
- If you’re a parent and you own 100% of your business, your children can work for you regardless of their age or number of hours worked. However, if children are under the age of 16, they cannot work in hazardous conditions.
- Owners of 100% of their business who only employ immediate family are not required to pay the minimum wage.
- Owners of 100% of their business who employ their children who are under 21 years do not have to pay FUTA.
- If your children are under 18, the wages are exempt from FICA if the parents are the only owners of the business.
- Other misc. provisions:
- Paid vacation is not required for part time employees.
- Providing health insurance is optional.
- A W4 must be obtained for each employee.
- Overtime must be paid for any hours worked over the 40 hour work week.
More information can be found at http://www.irs.gov/businesses/small/article/0,,id=97748,00.html.