Running your own practice is an undeniably rewarding experience. The combined opportunity to bring quality care to families in your community and make time to honor the moments in your personal life is what makes direct primary care so special.
You’re building a legacy, one with the potential to inspire future generations! That’s why parents in the DPC community usually want to know, “Can I employ my kids to work for me?”
Options for Hiring Your Child
We are happy to say that you can absolutely take that step! Making space for your child to work as an employee of your practice provides them with real-world job experience in a safe, supportive environment.
Let’s explore the two options you have for onboarding:
#1 – W-2 Employment
Bringing your child on as a W-2 employee is the option that we typically recommend! By hiring them under this contract, you can save all parties money in the long run and provide children with extra employment security.
You see, you don’t have to withhold Social Security and Medicare taxes (FICA) if your child is under 18. And if they’re under 21, you also don’t have to pay federal unemployment taxes on their wages. Paying your child as a W-2 employee allows the business to deduct their wages as a business expense, reducing taxable income. Finally, under W-2, your child may qualify for worker’s compensation and other legal protections.
#2 – Freelance Employment
Hiring your kids as a freelancer is certainly not a terrible option. Some benefits include less paperwork, no commitment to payroll, and tax deductions on your child’s end if they happen to run their own small business.
When considering this option, it’s important to note that freelancers have to pay self-employment taxes, which will ultimately take wages away from your child. Plus, the IRS is tougher on what legally qualifies someone as a freelancer, making it more tricky to follow legal guidelines.
Ultimately, regardless of how you onboard your child, it’s important to familiarize yourself with federal rules about labor, hours, and wages for children.
Know the Rules
The most common child labor violations are:
- Working longer or later than legally allowed.
- Operating heavy machinery, including a motor vehicle.
- Performing any job that is off-limits at their age.
The work you give your child must be legitimate and follow fair and equitable pay standards. Maintain records of their hours, pay stubs, and job descriptions in the event that you need to legitimize their involvement in your practice.
Hiring your child is a unique and exciting opportunity, keep it that way. Invest in your legacy, educate yourself on all the rules by visiting www.youthrules.gov , a valuable resource on Young Workers’ rights.
If you want to keep expanding your knowledge of employment, get access to our full webinar with the incomparable Spencer Phillips, an employment lawyer based in Salt Lake City, Utah when you join the DPC Academy!
