Employing a minor in my LLC

[adechian]

What do I fill out to report the money paid to my child who is a minor that I employed in my LLC?

[KristinaK]

You will report it on a Form W-2 in January of the next year. There are a number of points you want to know about  payroll for minors:

• These payments can be subject to withholding taxes. What it means is that you will withhold a certain percentage from the paycheck to pay your child's income taxes. 
• If the business is a sole proprietorship (single member LLC) or a partnership where the parents are partners, then the payments to children under 18 are not subject to social security and Medicare taxes. 
• And payments to children under 21 are not subject to Federal Unemployment tax. 
• There are state considerations as well. You probably will have to register with the state as employer paying wages and pay state unemployment tax. 
• You will need to file quarterly and annual payroll reports. Example: Form 941, Form 940. 
• And of course, there are Labor law considerations. 

Sometimes it's easier to have payroll done professionally, to make sure that all the requirements are met and all reports filed. Do check out Intuit's QuickBooks Payroll service here.