Can I put my 12 year old on payroll in the State of Michigan?

Hello there, Whitleyfarms1. Allow me to provide information about setting a minor as an employee in QuickBooks Payroll.

To begin with, according to the IRS," Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child."

For detailed information about this, you can open this discussion here: Family Help.

Moreover, I also suggest contacting the state of Michigan to know the tax implications of setting up a minor as an employee. They’ll tell you which taxes apply to you and help you register for the account numbers you need to pay taxes and file forms. You'll need the information such as the account numbers, how often you’re required to pay the tax (deposit frequency) and the tax rates.

Once you already confirmed, here's how to set up your employee:

1. Go to Payroll, then click Employees.
2. Select the name of the employee.
3. From Employment details, click Edit. Select Add work location in the Work location drop-down list. 
4. Enter your address, from Tax withholding, click Edit.
5. Go to the State withholding section. If you don’t need to collect state withholding in one state: in the Filing Status ▼ drop-down, choose Do not withhold (exempt).
6. If you see a Local Taxes or Other taxes section, select the applicable taxes and enter the rates.
7. If you or your employee are exempt from any taxes (not common), from Tax Exemptions, choose the applicable tax(es).
8. When finished, click Save.

After completing the steps above, you can now proceed to Step 3 Set up your new state taxes found in this article: Set up employees and payroll taxes in a new state.

Moreover, I've added this article as your reference in case you want to set up an auto payroll in QuickBooks Online Payroll: Set up and manage your Auto Payroll in QuickBooks Online Payroll.

Don't hesitate to leave a reply in this thread if you need help adding employees to your QuickBooks payroll. I'm always here to help you.