Registration of a minor employee: what is important for the employer to know

Employment relations with underage employees must be established according to the law, including taking into account tax requirements.

Employer is obliged to notify the State Tax Service about employment of a minor

According to current legislation, after issuing order to hire a minor employee, before the employee begins work under the concluded employment contract (employee actually performs his/her labor obligations), the employer is obliged to notify the State Tax Service of Ukraine about this in the prescribed form.

Notification is submitted in the electronic or paper form along with a copy in the electronic form and the employee’s data is entered into the Register of insured persons.

Clarification for employers regarding registration of minor employees

Information about the employee who has not reached the age of 18 must be recorded separately in the Employee registration journal, necessarily indicating the date of birth.

Taxation peculiarities of minors’ income

Income received by minors within the framework of employment relations is taxed on the general grounds. At the same time, if grounds and conditions are met, employees under 18 years old may be entitled to the tax social benefit according to Article 169 of the Tax Code of Ukraine.

Legality of employment is a guarantee of protection of rights and filling of the budget

Declared employment not only guarantees social protection of the employee, but also ensures revenues to the budget through payment of taxes and single social contribution. Violation of the employment registration procedure with minors may entail administrative liability for the employer.

Registration of minor employee is not only a personnel question, but also tax obligation. Compliance with all stages is the key to transparent enterprise’s operations and legal protection of young employees.