What to Know When Your Minor Child Gets a Job

The following post is by MPFJ staff writer, Laurie Blank.  Laurie is a wife, mother to 4 and homesteader who blogs about personal finance, self-sufficiency and life in general over at The Frugal Farmer. Part witty, part introspective and part silly, her goal in blogging is to help others find their way to financial freedom and to a simpler, more peaceful life.

So, your kid wants to get a job – that’s great! Or, you want him (or her) to get a job so he’s not spending quite so much time playing video games. Jobs are great for kids. They can teach young people about responsibility, hard work, and the concept that work equals money. But what does a minor child (and their parent) need to know about working? How do child labor laws work? What about tax reporting?

I’ll share a little bit here about what it means for families when their minor child gets a job. I’ll also share links to government websites that can expand on the issue.

Can My Minor Child Get a Job, Legally?

Child labor laws are important. They were primarily established in the 1930’s after the Great Depression resulted in more working kids. Many of those kids were treated horribly by employers who took advantage of their naivety and vulnerability.

There are two groups of child labor laws:

• National child labor laws set in place by the federal government
• Labor laws that vary by state

You can find expanded information on the federal child labor laws by clicking here. To learn about the child labor laws that apply to your particular state you’ll have to visit your state’s official website.

Both federal and state laws are important to know when gathering information about your minor child’s working ability.

We’ll primarily cover federal child labor laws here, simply because it would be too time intensive to share info about each state’s child labor laws.

Here’s what you need to know about federal child labor laws.

Federal Child Labor Law Summary

The government divides minor workers into two categories: those aged 16 and over, and those under 16.  From the government website publication on child labor laws:

“The FSLA provides a minimum age of 18 years for any non-agricultural occupations which the Secretary of Labor shall find and by order declare to be particularly hazardous 16 and 17-year-old persons, or detrimental to their health and well-being. This minimum age applies even when the minor is employed by the parent or person standing in place of the parent.”

In other words, there are certain jobs in which minors are not allowed to be employed under any circumstances. Some examples include jobs manufacturing explosives, coal mining or forest firefighting.

14 and 15-year-olds have the additional requirement that their jobs cannot interfere with school time or school work. 16-year-olds and older don’t have a limit on the number of hours they work. 14 and 15-year-olds can’t work before 7 a.m., after 7 p.m., no more than 18 hours during a school week or more than 40 hours during a non-school week.

Employees under 20 years of age may be paid $4.25 per hour for a wage, but only during the first 90 days of employment. After that, they must be paid at least minimum wage.

Note: the rules are different for minor workers when it comes to agricultural employment. For more info on agricultural employment of minors, click on this link. 

Does My Minor Child Have to File for Taxes?

Many parents wonder whether their minor working child is obligated to file a tax return. The basic rule is that the minor must file a tax return if their earned income is more than the personal exemption amount.

That personal exemption amount changes each year. In 2017 it was $4,050. If your minor earned less than that, they are exempt from paying taxes. However, if their employer took taxes out of their paycheck, they’d have to file in order to get a refund.

The exemption from paying taxes may be compromised in certain situations, for instance, if your minor owes Social Security or Medicare taxes on tip income.

You can find out more about minor workers and tax filing responsibility by reading this article. There’s a lot more to read on the subject of working minor children, but this brief summary will at least give you an overview.

When your minor child gets a job, it opens up a whole new world to him or her. With the money, they earn they can save for college, buy items that aren’t covered by the family budget or help the family out with expenses.

I know for me that working as a minor allowed me to have an experience that really helped prepare me for the world of adulthood.

***Photo courtesy of https://www.flickr.com/photos/usdagov/14123375105/in/