Legacy Tax & Resolution Services

Hire Your Child To Save Up to $4,560 in Taxes.

As a business owner hiring your kids is an excellent way to pay them up to $12,000 (currently) and in most cases your business gets to write it off.

 

What do you need to know?

In 2018 and beyond you can pay your child, under 18, up to $12,000 and it will be 100% tax free to them.

At the highest tax bracket, that is a savings to you of $4,560 currently

The job must be reasonable for their age.

A job description and tasks to be performs, would provide good support

You must keep accurate records of the work performed including timesheets.

Pay a reasonable rate based on the job performed and industry standards.

If paid from a sole proprietorship or a partnership in which the sole owners are you and your spouse, you are not required to pay FICA or FUTA.

 

If payment is from an incorporated business (S Corp or C Corp) the business would be responsible for the payroll taxes, but there is a workaround to this problem. 

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