In most jobs, yes — minors have to pay Social Security and Medicare taxes on their wages at the same 7.65% rate adults pay, with the employer withholding it automatically and matching it on their end.1Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates Age by itself does not create an exemption. A handful of specific situations do, though, and they depend on who the employer is and what kind of work the minor does.
The Default Rule for a Teenager’s Paycheck
A 15-year-old at a restaurant, a 16-year-old stocking shelves, a 17-year-old at a coffee shop — all pay FICA like anyone else. The employer deducts 6.2% for Social Security and 1.45% for Medicare from each paycheck, contributes a matching 7.65%, and remits both shares to the IRS.1Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates
Income tax has a standard deduction that often zeros out a teenager’s liability. FICA does not. Even a minor who earns far too little to owe any income tax will still see Social Security and Medicare taken out of every check, unless one of the exemptions below applies.
Working for a Parent’s Business
This is the biggest exemption. If a parent runs a sole proprietorship, or a partnership in which every partner is a parent of the child, wages paid to that child under age 18 are not subject to Social Security or Medicare taxes.2Internal Revenue Service. Family Employees When the child turns 18, FICA kicks in on all wages going forward.
The business structure matters. The exemption disappears if the business is a corporation, an estate, or a partnership with any non-parent partner.2Internal Revenue Service. Family Employees Families using an LLC should check how it is classified for federal tax purposes: a single-member LLC treated as a sole proprietorship qualifies, while one taxed as a corporation does not.
One point that trips families up: the exemption covers only FICA. The wages are still subject to federal income tax withholding regardless of the child’s age.3Internal Revenue Service. Tax Treatment for Family Members Working in the Family Business A child who earns more than the standard deduction will still owe income tax even though no Social Security or Medicare tax came out.
Babysitting, Nannying, and Household Work
Household jobs follow their own rules, and two separate breaks matter for minors.
First, a cash-wage floor applies to all household employees regardless of age. For 2026, a household worker who earns less than $3,000 in cash wages from a single household employer during the year owes no FICA, and neither does the employer.4Internal Revenue Service. Publication 926 (2026), Household Employer’s Tax Guide The threshold is adjusted annually.
Second, even above $3,000, a household employee under 18 is exempt from FICA as long as household work is not their principal occupation. A high school student who babysits on weekends qualifies, because the primary role is being a student.5Internal Revenue Service. Topic No. 756, Employment Taxes for Household Employees Someone 18 or older does not get this exemption, even if they are also a student.
A separate rule covers a parent who hires their own child for household work: wages paid to a child under 21 are exempt from both FICA and federal unemployment tax.4Internal Revenue Service. Publication 926 (2026), Household Employer’s Tax Guide That under-21 cutoff is higher than the under-18 cutoff for other household workers.
Newspaper and Shopping News Delivery
Federal law exempts anyone under 18 who delivers or distributes newspapers or shopping news directly to consumers — house-to-house delivery.6Office of the Law Revision Counsel. 26 USC 3121 – Definitions It covers the delivery itself and incidental tasks like assembling the papers. It does not cover regional distribution to stores or drop points for later delivery. When the carrier turns 18, FICA applies going forward.
On-Campus Student Jobs
Students who work for the school, college, or university where they are enrolled and regularly attending classes can qualify for a FICA exemption under IRC Section 3121(b)(10).7Internal Revenue Service. Student FICA Exception The test is whether the educational relationship is the primary one, meaning the job is incidental to the course of study.8Internal Revenue Service. Student Exception to FICA Tax The student generally needs to be enrolled at least half-time.
Watch the summer gap. The exemption does not apply during extended breaks longer than five weeks when the student is not enrolled. A student who keeps working at the campus bookstore across a long summer break without taking summer classes will have FICA withheld during those weeks, and the exemption resumes when classes start again. Smaller summer paychecks catch a lot of students off guard.
Self-Employed Minors: Lawn Mowing, Freelancing, Etsy
A minor working as an independent contractor has no employer to split FICA with. Instead, they owe self-employment tax, which covers both halves: 12.4% for Social Security and 2.9% for Medicare, for a total of 15.3%.9Internal Revenue Service. Topic No. 554, Self-Employment Tax The obligation kicks in once net self-employment earnings hit $400 for the year.
Self-employed minors report earnings on Schedule SE and can deduct half of their self-employment tax when calculating adjusted gross income.9Internal Revenue Service. Topic No. 554, Self-Employment Tax Because no one is withholding throughout the year, a minor earning enough may need to make quarterly estimated payments on the standard schedule: April 15, June 15, September 15, and January 15 of the following year.10Internal Revenue Service. When Are Quarterly Estimated Tax Payments Due? Estimated payments can generally be skipped if the total tax owed for the year is expected to be under $1,000.11Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty For most minors with modest side income, that safe harbor keeps quarterly filings off the table.
A parent can help prepare the return, but the minor is the taxpayer. The return is filed under the minor’s Social Security number and any tax owed is the minor’s legal obligation.
If FICA Was Withheld but Shouldn’t Have Been
When a minor qualifies for one of the exemptions above and the employer withheld FICA anyway, the money is recoverable, but not through the usual tax return. First, ask the employer to correct the error and issue an adjusted W-2. If the employer refuses or has gone out of business, the minor (or a parent) can file Form 843, Claim for Refund and Request for Abatement, directly with the IRS, attaching copies of the W-2 showing the incorrect withholding.12Internal Revenue Service. Topic No. 608, Excess Social Security and RRTA Tax Withheld You cannot claim this excess as a credit on your annual Form 1040 when the problem is a single employer’s mistake. Waiting for the IRS to notice will leave the money unclaimed.
The Upside: Credits Start Counting Early
Every dollar of wages subject to Social Security tax earns credits toward future retirement, disability, and survivor benefits. In 2026, one credit is earned for every $1,890 in covered earnings, up to four credits per year.13Social Security Administration. Quarter of Coverage A total of 40 credits — roughly ten years of work — qualifies someone for retirement benefits. A teenager who earns $7,560 or more in 2026 picks up all four credits for the year.14Social Security Administration. Social Security Credits Starting the clock in high school means reaching the 40-credit threshold sooner later on, which can matter for anyone who takes time out of the workforce for school, caregiving, or a career change.