Quick Answer

Yes, you must issue a W-2 to your child at the end of each year they work for you, regardless of how much they earned. The W-2 reports their wages and is required to: (1) file their tax return, (2) prove earned income for Roth IRA contributions, and (3) claim the FICA exemption if you're a sole proprietor. You must provide the W-2 to your child by January 31 and file Copy A with the Social Security Administration.

The Details

W-2 Requirements

As an employer—even of your own child—you must:

  • Issue a W-2 to your child by January 31 of the following year
  • File Copy A with the SSA by January 31 (or March 31 if filing electronically)
  • Keep records for at least 4 years

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 Often $0 (under standard deduction)
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: If your child earns below the standard deduction ($16,100 in 2026) and has no other income, you typically don't need to withhold. They'll owe nothing anyway.

FICA (Social Security/Medicare): If you're a sole proprietor or spousal partnership and your child is under 18, wages are FICA-exempt. No withholding required.

What This Means for You

Issuing a W-2 isn't optional. It's required. The good news:

  • If your child earns under the standard deduction, they typically owe no tax
  • The W-2 proves earned income for Roth IRA contributions
  • Tools like employkids generate W-2 worksheets with all the data you need

Your CPA or tax software uses the W-2 data to file the actual form with the SSA.

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