Posted by JuJuan Buford @JSBUFORD
Disclaimer: This content has been made available for informational and educational purposes only and is not meant to be a substitute for legal, accounting, or other professional advice. If you have specific questions about any legal matter, you should consult with an attorney or other professional services provider.
https://thebufordco.com/quicklinks/
It’s one of the least understood ways to lower your tax obligations, and conversely one of the easiest. And it is one of the best strategies for entrepreneurs who are interested in building generational wealth. And that is employing your children in your business.
Children who work for their parents are subject to the same tax rules as any other employee. However, there are some important factors to consider:
Tax benefits: Hiring children under 18 years of age can result in tax savings for business owners. The wages paid to children are tax-deductible expenses for the business, reducing the business's taxable income. Additionally, if the child is under 18 and is the business owner's dependent, they may be exempt from Social Security and Medicare taxes, resulting in additional tax savings.
Transfer of income: By employing their children, business owners can shift income from themselves to their children, potentially reducing their own tax liability. This can be especially beneficial if the child is in a lower tax bracket than the business owner.
Age: If the child is under the age of 18 and works for their parent's sole proprietorship or partnership, they are not subject to Social Security and Medicare taxes. However, if the child is working for a corporation, they are subject to all employment taxes regardless of their age.
Type of work: The type of work the child is performing also impacts taxation. If the child is performing household chores or other minor tasks, they are generally not considered employees and do not need to pay taxes. However, if the child is performing substantial work, such as administrative or managerial tasks, they are considered employees and are subject to all employment taxes.
Wages: The wages the child receives (TO CONTINUE READING VISIT https://www.catchjsbuford.com/2023/03/why-including-your-children-in-your-business-can-be-beneficial-.html )
___________________________________________________________________
Do you have additional questions? Call 888.549.9689 x.101 or I invite you to visit my online calendar and schedule a virtual meet-up. And if you found this article and any of our content to be awesome, and you're feeling tipsy? Click this link Buy me a coffee!
Join our email list to enjoy a more comprehensive, insightful experience JSB Business Solutions Email List
#catchjsbuford #entrepreneurshipisempowerment #nextoppsocial #smallbizarchitecture #businessdevelopment #entrepreneurship #jsbbusinesssolutionsgroup #smallbizarchitect #jsbbusinesssolutionsgroup #businesssolutions
JuJuan Buford, Managing Partner
888.549.9689 / [email protected]
|
