Single Member LLC paying minor child to help out with business

[GG-88]

Hello,

I am a single member LLC (reported as disregarded entity) in the bookkeeping business and I started to train/hire my child whos 11 years old to help out.  How would I pay my child?  Can I just write him/her a check and do I need to report this with EDD even if no tax, medical, futa, etc. is due?  Could I just write him/her a check monthly for the service and just report in my LLC as outside labor in my LLC books.  Do I need to register with EDD and report that I paid my child?  What should I look out for?  I want to make sure I am doing this correctly.

[MinhT1]

If your business is a single member LLC and your child is under 18, payments for his/her services are not subject to Social security and Medicare tax, Federal withholding and FUTA tax.

So basically you can write him/her a check and deduct it as a business expense.

Please read this IRS document for more information.

[GG-88]

Thanks for confirming.

So I don't need to register with EDD and report wages at all? 

As well, any restriction in CA Labor Law.  I am paying them the CA minimum wage.  

[MinhT1]

We cannot give legal advice.

We can only point you to this document from the US Department of Labor.

[GG-88]

Do I need to issue my child a W2?  Also, does my child need to report/file anything?  And can they still qualify  to be my dependent on my tax return?  

[Critter-3]

YES ... you must file all required payroll tax reports each quarterly and file annual payroll items including issuing a W-2.  Please educate yourself on the requirements needed in your state.