Summer Hiring Rules:
Rules for 100% Parent-Owned Businesses:
Owner’s children of any age can work any number of hours or time of day. Those under
16 can’t do hazardous work, work near flammable or hazardous materials or where food is cooked.
If the only employees are immediate family. Owner’s children need not be paid the minimum wage; but if others are regularly employed, even family members must be paid minimum wage.
Owner’s children under the age of 21 are exempt from FUTA.
Any child under 18 is exempt from FICA.
Rules for children who are not the owner’s children:
Workers aged 14-15 can work 8 hours a day, 40 hours a week, June 1 – Labor Day, between 7 am – 9 pm if school is not in session
Other children under 14 cannot be hired unless they work for a parent/sole owner
For all summer employees:
Withhold FITW including owner’s spouse/children unless a W-4 claims exempt
Withhold FICA from all employees including high school students who receive Social Security benefits
Pay overtime when applicable
Limited Tax Amnesty Program – The Texas Comptroller’s office has announced a limited amnesty program from July 12,2012, through August 17, 2012. If you have past due reports, have failed to register for a tax, or owe fees, you’re in luck. The amnesty program provides for a waiver of penalties and interest on eligible taxes. For detailed information and instructions, please click on the Project Fresh Start link below.
New Social Security Numbering System – In order to fight the continuing problem of identity theft and reflect changing demographics, the Social Security Administration is replacing the current numbering method with a new random-numbering system. In the past, the first three digits of a social security number have always indicated an area. Under the new system, which went into effect in June 2011, does not affect current social security card holders; only those applying for a new social security card.
What has changed:
Numbers are no longer based on geography
Numbers that begin with an 8 are valid (prior to the new system an 8 was a red flag for fraud).
Numbers for the general population can now begin with a 7 (under the prior system 7 was reserved for those in the Railroad Retirement system and non-U.S. applicants).
What hasn’t changed:
No social security number begins with 9.
No social security number begins with 666 or 000.
Middle digits are never 00.
Ending digits are never 0000.
Warning about Unemployment Claims – Many employers falsely believe that if an employee quits, they are not entitled to collect unemployment. However, this is not always the case. While a claim may be disqualified, it is not automatic. Successful claims are usually related to changes in working conditions or the job after hiring or a breach of contract detrimental to the worker’s interests. Some examples include:
A significant reduction in hours or pay
Demotion or loss of responsibility
Change in worksite location
Violation of wage-hour laws
Discrimination or discriminatory harassment
Conditions harmful to the worker’s health or safety
Medical reasons, or upon the advice of a doctor
Caring for an ill or dependent parent or child
Following a military or nonmilitary transferred spouse.
Unemployment benefits tend to be denied for employees who quit to:
Seek or accept other work
Stay at home with children
Not showing up or not calling in for three days.
Fake IRS websites are on the rise again after a decline for several years. These fake sites are again capturing personal or business information and refunds. By the end of 2012, the IRS predicts that there will be at least 14,000 fake IRS websites. To avoid being a victim:
Visit only the official IRS website at www.irs.gov by typing the address into your browser
DO NOT click on an IRS link on a search engine or in an email unless you are positive it is trustworthy
Know that the real IRS contacts you for personal, financial or business information only by regular mail, telephone, on visit
The IRS does not make grammatical errors in its emails or on its web site. If you see either, you are probably on a fraudulent site.