topic How do I answer the question "Did you pay any employees in 2022" when I paid my minor children? I believe I answer No I Didn't in Business & farm

How do I answer the question "Did you pay any employees in 2022" when I paid my minor children? I believe I answer No I Didn't

linseywickesberg — Mon, 23 Feb 2026 13:23:17 GMT

Re: How do I answer the question "Did you pay any employees in 2022" when I paid my minor childre...

AliciaP1 — Sat, 04 Feb 2023 19:49:54 GMT

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.

Re: How do I answer the question "Did you pay any employees in 2022" when I paid my minor children? I believe I answer No I Didn't

Mike9241 — Sun, 05 Feb 2023 03:15:33 GMT

so the answer is yes if you take a deduction for what you paid them. you should also have filed w-2's for their gross compensation even if not subject to FICA/Medicare or withholding. The IRS generally takes a dim view of treating your children as independent contractors (1099-NEC).

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see 1040 instructions in charts B & C as to whether returns need to be filed for your kids.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf