If the feds were to audit the situation you are describing, I would wager they'd come after Google.

Google has a lot more freedom and track record for asking forgiveness instead of permission than Paypal (i.e. wifi sniffing in google cars). They are not a payment processing company.

This stuff is complicated. Never attribute to malice that which is adequately explained by stupidity.

Corollary: Be careful attributing to stupidity that which can be explained by laziness?

Why would they come after google? A parent can make nearly any transactions for the child. And 17 year olds can take jobs, so even giving him a "job" to pay him trough that probably only would interest the tax guys ("Why are you paying some guy in germany 10k an hour" "Because we don't want to wait to long to transfer all the money" probably is problematic). If it is a problem with US law, both google and paypal have companies in the EU that could handle that.

Why's that? Minors can receive compensation for work they perform.

Also, would it even be applicable to minors working from outside the U.S?