It depends on how your business is structured and reported for taxes.
Per the IRS:
If the business is a parent’s sole proprietorship or a partnership in which each partner is a parent of the child:
- Payments for the services of a child are subject to income tax withholding regardless of age.
- Payments for the services of a child under age 18 are not subject to social security and Medicare taxes. If the child is 18 years or older, then payments for the services of a child are subject to social security and Medicare taxes.
- Payments for the services of a child under age 21 are not subject to Federal Unemployment Act (FUTA) tax. If the child is 21 years or older, then payments for the services of a child are subject to FUTA taxes.
You can see Family Help for more information.
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