💰Hiring your kids as employees can result in tax savings for your business.
📝Document and pay your child employees in a timely manner to maximize tax benefits.
💼Children must perform legitimate work for your business to qualify as employees.
💡Federal and state income tax savings can be obtained through the child's standard deduction.
🗒️Maintain accurate records of your child's hours and wages to support tax deductions.
Can I save taxes by paying my children as employees?
—Yes, hiring your kids as employees can result in tax savings for your business through deductions.
What is the benefit of hiring my child as an employee?
—By hiring your child, you can deduct their wages from your business income, reducing your taxes.
Are there any requirements for hiring my child as an employee?
—Your child must perform legitimate work for your business, and you need to maintain proper documentation and pay them in a timely manner.
What tax benefits can I expect from hiring my child?
—The main tax benefits include federal and state income tax savings through the child's standard deduction.
What records should I keep for my child employees?
—It is important to maintain accurate records of your child's hours worked and wages paid to support tax deductions.
00:00Welcome back! In this video, we discuss the tax benefits of hiring your kids as employees in your business.
02:18Paying your kids as employees can result in tax savings for your business, but there are important rules and considerations to be aware of.
05:12Federal and state income tax savings can be obtained by utilizing your child's standard deduction.
09:57Proper documentation, timely payments, and legitimate work are crucial for maximizing tax benefits.
12:49Maintaining accurate records of your child's hours and wages is essential for supporting tax deductions.
