Hiring Your Kids – Did You Know?
During summer and other times in the year, you may be able to claim tax savings from hiring your kids to work in your business.
The work performed must be ordinary and necessary to the operation of the business. They will also require a Form W-4 and I-9, the same as hiring a normal employee.
Your business may be able to deduct their wages as a business expense and, if they are under 18 and working for a sole-proprietorship, not have to withhold FICA from their salary. Kids with earned income can also begin to contribute to an IRA and enjoy the benefits of a longer investment period.
Leave a Reply