Jun 17, 2025, 9:50 AM
(From Accounting Today) As summer approaches, many teens will take on seasonal jobs — and business owners who employ their children can benefit. Experts suggest keeping a child’s annual earnings under $15,000 to avoid filing requirements and maximize tax-free income. Wages paid can be deducted as business expenses and may be exempt from certain payroll taxes. Because employers must document hours and duties properly and follow child labor laws, tools like IRS checklists and school-provided tax guides can help employers stay compliant. Kids also gain valuable work experience and can start saving through accounts like Uniform Transfers to Minors Act (UTMA) portfolios.
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