What Employers Need to Know About Hiring Teens and Students This Summer
As summer kicks in, many businesses look to teens and college students to fill seasonal roles. It’s a great way to support young workers while keeping your business running smoothly—but there are some key rules you need to follow to avoid costly mistakes.
1. Know the Labor Laws
The Fair Labor Standards Act (FLSA) sets limits on how many hours teens can work, especially those under 16. State labor laws may also apply, and can differ significantly—so check both federal and local regulations.
2. Don’t Skip the Paperwork
Even summer workers need the right documentation. That includes:
Form W-4 (Employee’s Withholding Certificate)
Form I-9 (Employment Eligibility Verification)
State-specific new hire reporting
Keeping proper records now avoids headaches (and penalties) later.
3. Understand Tax Withholding
Teen employees may not owe federal income tax depending on their total earnings—but Social Security and Medicare taxes still apply in most cases, even for part-time or short-term hires.
Tip: If a student expects to earn less than the standard deduction ($14,600 in 2024), they may be exempt from income tax withholding—but must indicate that on their W-4.
4. Consider Your Payroll Setup
Hiring seasonal help might require tweaks to your payroll system. Be sure to classify your summer hires correctly (W-2 vs. 1099), and ensure your payroll provider or system can handle additional employees.
Final Thought
Bringing young people into your business can be a rewarding experience—for them and for you. Just make sure you're set up for compliance, tax accuracy, and a smooth summer season. Tax Pros HQ can help you get it right.
