Family Employment Exemption

Missouri law exempts from coverage services performed in the employ of a son, daughter or spouse or by a child, stepchild, or foster child under the age of 21 in the employ of the child's father or mother. This includes legally adopted, step, and foster children and parents.

When the employing unit is a sole proprietorship, the services performed by the owner's parents, spouse and children under the age of 21 are not covered by state unemployment insurance.

If the business is a partnership, or a limited liability company taxed as a partnership, an exempt family relationship must exist between the worker and each partner in order for this exemption to apply. The qualifying relationship does not have to be the same for all partners/members. For example:

Rebecca and Joseph, a mother and her natural-born son, operate a partnership. Rebecca's husband, who is also Joseph's father, works for the partnership. His wages are not reportable because he has a qualifying relationship with both partners (as Rebecca's spouse and Joseph's father). Joseph's wife also works for the partnership. Her wages are reportable because she does not have a qualifying relationship with one of the partners (she is Joseph's spouse but she is Rebecca's daughter-in-law, not Rebecca's natural, adopted, step, or foster daughter under the age of 21).

The exemption for family employment does not apply to the family of the officers or stockholders of a corporation.