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Thread: Legal question about children of employee

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    Post Legal question about children of employee

    Our company offers a benefit where if an employee's children receive certain grades, the company will pay a "congratulations bonus" to them. We used to simply submit a copy of the report card and the company cut a check to the employee on behalf of the child(ren). Now, the policy has changed requesting the child's Social Security #, and the check will be cut to them. They are also asking on the form if the child is biological or adopted. Is this legal to ask? I believe it's none of their business.

  2. #2
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    Steve B's Avatar

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    They are legally allowed to ask anything they want. It's what they do with the information if you give it to them that could be illegal (i.e. not handling the SS # in a prudent matter or deciding to make an employment decision based on who has biological kids versus adopted kids).

    I don't understand why they would ask if the child is biological or adopted - but, they can ask it if they want. They probably really meant to ask if you are their legal guardian to make sure you're not cashing in on the good grades of the neighbor kid. I can't imagine why else they would ask such a dumb question.
    Steve B

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    I guess I could see cutting the check in the child's name and under their social security number if there had been a problem with parents taking the money meant for the kids.

    I'm not sure what the biological or adopted thing as to do with anything, unless they consider stepchildren don't count and so are trying to avoid paying bonuses to kids who aren't legally the children of the employee who is trying to collect the bonus. Seems a little petty to me, but that might be it, especially if the program is causing them to pay out a lot of money.

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    Mr. Tax Man
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    Looks like some sort of scholarship to the children... which is fine. They probably shouldn't be asking those questions, but you also don't have to participate in this program if you're uncomfortable submitting those questions.
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

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    I would feel uncomfortable giving my kid's SSN out. Especially with all of the recent press about identity thieves targeting children.

    I would also think that asking if they are a legal guardian would be sufficient. Many people may not fall into the mold. They could be raising kids of family members, grand kids and so on.

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