## 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](/content/site-root.html) 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.

## Sources

- [IRS Form W-2](https://www.irs.gov/forms-pubs/about-form-w-2): Wage and Tax Statement
- [IRS Publication 15](https://www.irs.gov/publications/p15): Employer's Tax Guide