Do I need to issue a W-2 for my child?
Quick Answer
Often, but not always. Whether Form W-2 is required depends on whether the child is a business or household employee, the amount and type of wages, and whether any tax was withheld. If a W-2 is required, it is generally due to the employee and the Social Security Administration by January 31. Review the current Form W-2 instructions and, for household work, IRS Publication 926.
The Details
Determine Which Employer Rules Apply
Do not decide based only on the family relationship. Check:
- Employment context: business and household employment have different reporting rules
- Wages and withholding: current thresholds and withholding can trigger a W-2
- Family exceptions: these can change payroll-tax treatment but do not answer every reporting question
- Deadline: when required, furnish and file the form by the current IRS due date
What Goes on the W-2
| Box | Description | Typical Amount |
|---|---|---|
| Box 1 | Wages, tips, other compensation | Total wages paid |
| Box 2 | Federal income tax withheld | Actual federal income tax withheld |
| Box 3 | Social Security wages | $0 if FICA exempt |
| Box 4 | Social Security tax withheld | $0 if FICA exempt |
| Box 5 | Medicare wages | $0 if FICA exempt |
| Box 6 | Medicare tax withheld | $0 if FICA exempt |
Do You Need to Withhold Taxes?
Federal income tax: Follow the current Form W-4 and employer rules. A dependent's standard deduction, other income, and filing circumstances affect the child's final return, but do not replace the employer's withholding analysis.
FICA (Social Security/Medicare): A child under 18 employed by a parent sole proprietor, a disregarded single-member LLC wholly owned by the parent, or a partnership in which every partner is a parent may qualify for the family exception. Corporations and LLCs taxed as corporations generally do not qualify.
What This Means for You
If the filing rules require a W-2, it is not optional. employkids helps organize wage data, but:
- The worksheet is not an actual W-2 and is not filed for you
- It does not determine whether a W-2, withholding, deposits, or other forms are required
- employkids organizes recorded wage data for review with your payroll or tax professional
Your CPA or tax software uses the W-2 data to file the actual form with the SSA.
Sources
- IRS Form W-2: Wage and Tax Statement
- IRS Publication 15: Employer's Tax Guide
Related Questions
Learn More
How to Hire Your Kids: The Complete Guide (2026)
Learn how to legally hire your children in your family business, including tax benefits, IRS requirements, age-appropriate jobs, reasonable compensation, and documentation requirements.
How to Document Paying Your Kids: The Complete Checklist
A practical checklist for family-employment agreements, work logs, payment records, and year-end worksheets. Requirements vary, and the guide does not replace payroll, tax, or legal advice.
Ready to get started?
employkids handles the documentation so you can focus on paying your kids for real work.
Get Started