Question

Im self employed,Small Business owner

If my teenage children work with me on their own accord

and I give them incentives do I file W2 for them?

Yes. Compensation can take various forms, not just cash. They are your employees and are treated as such, with the exceptions of the points below.

Children employed by their parents

If the business is a parent’s sole proprietorship or a partnership in which each partner is a parent of the child:

Payments for the services of a child are subject to income tax withholding regardless of age.
Payments for the services of a child under age 18 are not subject to social security and Medicare taxes. If the child is 18 years or older, then payments for the services of a child are subject to social security and Medicare taxes.
Payments for the services of a child under age 21 are not subject to Federal Unemployment Tax Act (FUTA) tax. If the child is 21 years or older, then payments for the services of a child are subject to FUTA taxes.