2017 SUMMER HIRING RULES
Rules for 100% parent-owned businesses
Owners’ children of any age
• Can work any number of hours or time of day. No one under 16 can do hazardous work (e.g., with lawn mowers, sewing machines), work near flammable or hazardous materials, or where food is cooked.
• If all employees are immediate family, owners’ children need not be paid the minimum wage—but if others are regularly employed, even family must be paid the minimum wage.
Owners’ children under 21
• Wages are exempt from FUTA.
Any children under 18
• If the business is 100% parent-owned, the children under 18 are exempt from FICA.
• If not the owners’ children, obtain an age certificate that is recognized by both the U.S. Department of Labor (DOL) and your state Wage and Hour Division (WHD). DOL often accepts state age certificates, but ask your state or local WHD to be sure. Return the certificate to the worker at termination.
• These workers may not do hazardous work.
Workers aged 14-15 not owners’ children
• Can work 8 hrs./day, 40 hrs./wk, June 1-Labor Day, between 7 a.m.-9 p.m. if school is not in session. Exceptions: Limits do not apply to news carriers or children who are employed exclusively by a parent/sole proprietor. For agricultural jobs, contact the DOL.
Other children under 14
• Cannot be hired unless they work for a parent/sole owner.
Employment tax rules
• Obtain W-4s from all employees—owners’ children, student part-timers and foreign students.
• Withhold FITW from all employees, including the owner’s spouse or child unless a W-4 claims exempt.
• Withhold FICA from all employees, even high school students and those receiving SS benefits. Exception: Children under 18 working for soleowner parents.
Pay overtime for hours actually worked over 40 hours in the workweek. You are not required to include as hours worked paid time off (holidays, vacation days). Do not substitute paid nonwork hours for work hours to make all hours straight time, thus avoiding overtime pay.
Example: Lee works 12 hours a day the first 4 days of the workweek, but not on the 5th day, a holiday, for which he is paid for 8 hours. He is correctly paid 40 hours’ straight time + 8 hours’ overtime + 8 holiday (nonwork) hours. Lee’s employer cannot substitute the 8 hours’ holiday pay for the 8 hours’ overtime to avoid paying the overtime rate.
Paid holidays and vacations
• Under federal law, paid holidays for part-time and summer help are always optional—as they are for all employees—but check state laws.
• No paid vacation is required—but if you give paid vacation, some federal and state laws apply.
Benefits
• Temps and part-timers. Benefits are optional, but if offered, should be explained in a written benefits plan.
Always check your state’s laws.
Information found in AIPB’s The General Ledger newsletter for Professional Bookkeepers