Because of excellent advice from our tax professional, we've been employing our children in our Schedule C business. Do we have to set up a MERP for them separately? : FAQ/Blog/Solutions
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Because of excellent advice from our tax professional, we've been employing our children in our Schedule C business. Do we have to set up a MERP for them separately?

by Tom Luker on 05/01/15

It's great that you are taking full advantage of family employment.

  • Especially for children under age 18 working in a non-corporate business [Schedule C or F.] That even saves FICA payments for the child, and court cases have approved proper employment at age 7. What kid can hardly wait to go out and clean the barn in a dairy farm?
  • When our kids were young we paid them as much as ten cents for each envelope stuffed and stamped.
  • There would be no reason to include them in the MERP as long as they are dependents on your tax return. Later, as adults, all of the regular employment and MERP rules apply.

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