Self-employed and paid my teen to work for me
I clean two small offices part-time and am considered a subcontractor and receive a 1099 from each company.
In 2014, my 16-year-old son began working with me on weekends and I would pay him directly for his time. He ended up earning a bit over $1800.
So..here are my questions:
1. Do I issue him a 1099? I was also told a W2. Which is it? I am just a one-woman operation and this is the first year I have had anyone help me.
2. I was told paying your child is a big red flag for an audit but I'm wondering why...particularly in my case, given I am such a small operation and his pay wasn't much?
3. What records would be required should this happen? I have his cleaning days and hours in my calendar and I kept records of his pay..although this was sometimes in the form of cash..but I did keep records. He deposited some of this in his account and sometimes not.