I understand one can hire his/her own children, 7 to 18 years old, to help his/her sole proprietary business. Where do I show this expense in Schedule C? Is there a special form to fill out for this expense?
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hiring own children in sole proprietary business
Mar 03, 2007
2 Replies
If you hire them, you haveto pay them a wage. You need to file quarterly and annual payroll tax forms, including a W-2. Then show the gross wages on Schedule C under the Salaries and Wages line.
You may not have to collect or pay payroll taxes (social security and medicare, FUTA) on "family employees". See Pub
15 for the rules.
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