First Employee
“I officially hired my teenage children to work in my family business, are their specific wages legally exempt from FICA and unemployment taxes?”
Whether wages paid to teenage children in a family business are exempt from FICA and unemployment taxes often depends on the business entity, the child’s age, the type of work performed, and how the payroll is documented. In many cases, family employment rules differ for sole proprietorships, partnerships, and corporations, and the treatment can also vary based on whether the work is truly regular employee work or more casual help. Recordkeeping, payroll setup, and the relationship between the owners and the children are usually important factors in determining how the wages are handled for tax purposes. Working through the specifics with a CPA is the cleanest way to land on the right move.
In your 30-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“Should I pay someone as a 1099 contractor or an employee for tax purposes?”
“How do I know if I should hire someone as a contractor or employee for taxes?”
“I am hiring my first worker, should they be 1099 or W-2 for tax reasons?”
“What changes on my taxes if I use a 1099 contractor instead of an employee?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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