We are starting a small business and will be employing our minor children in the business. I understand that minor children working in their parents business are exempt from paying Social Security tax. My question is could we elect to have them pay Social Security tax? I can see some benefits to them establishing Social Security earnings and credits early on.

Hi,

Voluntary payment of Social Security taxes isn't permitted, so your children can only receive Social Security earnings credits if their earnings are legally subject to Social Security taxes. Earnings of a child under age 18 who works in a sole-proprietorship or a partnership owned by their parent(s) are exempt from Social Security taxes, but if your business is incorporated then your children's earnings from the corporation would be subject to Social Security taxes (https://www.irs.gov/businesses/small-businesses-self-employed/family-help).

Best, Jerry