teenager restaurant job: How do they get paid?

[Anonymous]

My kid got a job working the counter at a small independent food stand. (Think Cava or Chipotle, but mom-and-pop sized, with only one branch.) The owner said my kid could either be a W2 employee or a 1099 employee, but my kid hasn't filled out any paperwork (no W9, no passport submitted, etc.). My kid asked if she could sign up for direct deposit, and the owner asked if she could get paid via Zelle instead. Is this typical? If your kid has a job, how are they getting paid? Are they having taxes withheld?

[Anonymous]

My ds had two restaurant jobs (independent, not chains) and had a w2 and paper checks both times.

[Anonymous]

This is not typical. Your kid is going to get a 1099 and have to pay their own taxes. This “employer” sounds problematic.

[Anonymous]

My kid was a W2 employee and was paid via direct deposit. Tips were calculated nightly and he got a debit card that they put his tips on. He could access them right away but his paycheck was every two weeks.

[Anonymous]

They definitely shouldn’t be a 1099. That’s ridiculous. The employer is evading taxes. Tell your kid to put in an application at Chipotle.

[Anonymous]

I had 3 small business owners who never paid me other than some tips for years. It shows up in my SS statement and follows me forever. Maybe he can get another job. Your kid can be a host or a busser. Find a place that gets them on W-2 the first day. That business is sketchy.

[Anonymous]

Agree with the above. This is a case where you can be involved because what kid knows they are getting screwed in taxes?

I roll my eyes at kids that get HW help in college, but in this case, the employers sound ignorant at best and fraudulent at worst so you should confidently step in. Plenty of places hiring that don't swindle teens.

[Anonymous]

I always had W2s, this place is sketchy and your kid definitely shouldn't be a 1099 employee.

[Anonymous]

No, zelle is not tracked by taxes it's not meant for paying workers. It's a inter bank transfer. Your child would end up paying taxes when the filed

[Anonymous]

I wouldn’t allow that. No workers rights or documentation.
Mine worked at starbies and got a proper paycheck direct deposit with taxes, ss etc taken out. It’s a good paper trail. An employer who pays under the table is never going to be able give a good recommendation later on.

[Anonymous]

Anonymous wrote:This is not typical. Your kid is going to get a 1099 and have to pay their own taxes. This “employer” sounds problematic.

This. Sounds like the employer is trying to pay under the table to avoid the required things for employees. Like injury protection and employee taxes.

Remember this, even though it is years from now and might not exist by the time your teen retires, every single year of employment counts for social security. I was amazed to see my own report of my first fast food job.

[Anonymous]

Yeah, they’re avoiding paying taxes. I’d be worried they won’t pay your kid. This is not normal

[Anonymous]

My kid works for an independent owned (but full sized) restaurant and is a W2 employee paid via direct deposit.

[Anonymous]

Anonymous wrote:They definitely shouldn’t be a 1099. That’s ridiculous. The employer is evading taxes. Tell your kid to put in an application at Chipotle.

+1 A 1099 is for the self-employed. This happened to me when I was a teenager--I had to pay a ton of taxes--it's not favorable to your child and it's an accurate description of what your kid is doing at a restaurant type place.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is not typical. Your kid is going to get a 1099 and have to pay their own taxes. This “employer” sounds problematic.

This. Sounds like the employer is trying to pay under the table to avoid the required things for employees. Like injury protection and employee taxes.

Remember this, even though it is years from now and might not exist by the time your teen retires, every single year of employment counts for social security. I was amazed to see my own report of my first fast food job.

My first job took out employment and SS taxes from my paycheck, but apparently never paid them to Social Security and there's no record . When I realized this several years later, it was too late to correct it and the company had gone bankrupt. I am always annoyed when I see the statement.