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 Your Children
Will Work for Money!
By:
Sheri D. McWhorter, JD, SPHR
Home-based businesses may enjoy significant tax
advantages when they hire and employ their children in
their business. Depending upon age and abilities, your
children may be able to help with your filing backlog,
answer the telephone and take orders, assist with your
website and other computer needs or do just about
anything else related to your business.
The
employment of children in Florida is governed by state
law under the Florida Child Labor Law, and may also be
governed by the federal Fair Labor Standards Act (FLSA).
Businesses not subject to the FLSA must still comply
with the Florida Child Labor Law. Where both federal
and Florida child labor laws apply, businesses must
comply with the stricter of the two. All businesses
employing minors in Florida must display the Florida
Child Labor Poster in a conspicuous place on the
property.
In
addition to complying with state and federal child labor
laws, to enjoy the associated tax deductions, you must
pay your children a “reasonable wage” for working in
your business. You may be able to take a tax deduction
for taxes associated with any “reasonable wages” paid to
your children age 7 or older. If your business is
unincorporated (a sole proprietorship or partnership
where each partner is the parent of the child), and your
children are under 18, you will not have to pay Federal
Unemployment Tax (FUTA), Social Security or Medicare tax
on their wages. Assuming this is your children’s only
source of income, the wages are considered “earned
income,” and in 2008, the first $5,450 received by each
child is tax-free.
In
Florida, the general rule is that children under 14
cannot be employed in any gainful occupation. However,
minors of any age may be employed directly by their
parents or guardians in non-hazardous occupations during
the hours they are not required by law to be in school.
Florida
has incorporated the list of hazardous occupations from
the FLSA and added a number of its own. All minors are
forbidden from working in or around toxic substances,
corrosives, pesticides, radioactive substances or
explosives or working with compressed gases exceeding 40
p.s.i., except that minors age 16 or over may fill
balloons and bicycle/car tires (but not truck/heavy
equipment tires), if the minor has been properly
instructed and the tank/cylinder containing the
compressed gas is fixed and secure. They may not work
manufacturing brick, tile or similar products. They may
not work with electrical apparatus or wiring, work in
roofing, or work on scaffolding, roofs or ladders over 6
feet. Minors may not operate power-driven meat
processing machines, meat and vegetable slicers, or
power-driven bakery machines. They may not operate
circular saws, band saws, or guillotine shears, and may
not operate or assist with operating tractors over 20
PTO horsepower, forklifts, earthmoving equipment or any
moving machinery. They may not operate motor vehicles
as a driver or delivery driver, or as an outside helper.
For
minors under age 15, Florida’s list of hazardous
occupations includes all of the occupations listed
above. Also forbidden is operating any power-driven
machinery other than office machines, including all
power mowers and cutters, or maintaining or repairing an
establishment, machinery or equipment. They may not
operate motor vehicles (except scooters), load or unload
trucks, railroad cars or conveyors, or engage in spray
painting. Minors under 15 may not work conducting
door-to-door sales of products, nor may they work in a
public messenger service. They may not work in
manufacturing or processing operations where goods are
manufactured or processed, or in occupations in
transportation, warehouse and storage, communications,
or construction (unless employed in a clerical
capacity). Minors under age 15 may not work in freezers
or meat coolers and may not operate, set up, adjust or
clean power-driven meat or vegetable slicers, grinders,
food choppers, cutters or bakery-type mixers. They may
not engage in any baking, and may cook only in limited
circumstances.
Where
the federal FLSA applies, no minor under age 17 may
drive on public roadways as part of his or her job.
Federal law allows 17 year olds to engage in “incidental
and occasional” driving on public roadways, subject to
specific restrictions. Delivery jobs and service calls
that require driving to customers’ homes are strictly
prohibited. To be eligible to drive, the 17 year old
must have completed a drivers’ education course and have
a clean driving record. Other specific restrictions
apply.
By
following the guidelines outlined above, you may enjoy
the many benefits, financial and otherwise, of having
your children working alongside you in your home-based
business.
Sheri D. McWhorter,
JD, SPHR is a Florida Bar Certified Specialist in Labor
& Employment Law, and is the President and Managing
Shareholder of WorkplaceLegal SolutionsSM,
Law Offices of Sheri D. McWhorter, P.A. With offices in
St. Petersburg and Tampa, WorkplaceLegalSolutions
provides employee relations counseling and proactive
employment law solutions to businesses and non-profits
throughout Florida and the greater Tampa Bay area.
www.WorkplaceLegalSolutions.com
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