When I meet with people who have small to medium sized businesses, I always talk to them about their family.
I got my kid when she had just turned 10. She was a part of the package that came with my husband, the love of my life. I for one am so glad that I became a part of her life. I was able to impart my sense of independence and self-sufficiency on her. She has always been and always will be this really important part of my life.
We had our growing pains and there were times that I felt like she was always asking for us something? What do you do? As a parent, you want to make sure they have things and the stuff and truly what they need. What if they could pay for some of those things themselves and you get a deduction for it?
Did you know that if you own your business, you can have your kids work for you and do things for the business? I mean, legitimate work. Of course, they need to be old enough to do some of these things, but you can teach your kids how to file, Let them help you with mailing out products, or brochures, drop off flyers, answer phones, how about have those experts of social media put the skills they have to good use. Let them manage your social media, FaceBook, Instagram, Twitter, Snapchat.
So here is how we break that down first, the rules:
*Your children must be 7 to 23 years old. You can hire your young kids without worrying about child labor laws.
*You must pay them a reasonable wage. No, you can’t pay them $100 an hour
*You must keep timecards or timesheets that are precise. Good record keeping is important.
*The first $12,000.00 is tax-free – if they make more than that, you will need to pay unemployment, Federal and State taxes.
*They must file their own tax return.
***Check with a tax professional to make sure you are in compliance***
Assuming that you are in a 35% tax bracket you end up saving about 4200.00 in taxes. The bonus here is your kids will learn the value of earning their own money. You are helping to put them on the road to success for their future life endeavors.
Please reach out to us if you want more information!