buksoHiring your children family employees sole
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
United States
In a sole proprietorship (or a partnership owned only by the parents), wages paid to your child under 18 are not subject to Social Security and Medicare tax, and under 21 not subject to FUTA. The work must be real and the pay reasonable. In a corporation all payroll taxes apply.
Official source: irs.gov