Having a family while running a small business means balancing the growth of your agency with the cost of movie tickets, travel soccer, or the latest gadget every other kid in class has. Fear not, weary entrepreneur, there’s a way to keep the little ones happy and save your business some valuable coin – employ your kids.
Children provide a number of tax saving means. Hiring your kids to legitimately work for your business allows you to deduct their salaries from your business income as a business expense. If your children are under 18, you do not have to pay or withhold any FICA tax on the salary (with a few exceptions). Children must pay tax on their salary only to the extent it exceeds the standard deduction, $6,300 per year.
Check out next week’s blog to find out the rules regarding hiring your children and the tax benefits that come with it. As always, follow us on Twitter @StriveCPA or visit our website strivecpa.com/insurance to find out more information or how we can help your business.
A better, faster, easier way. 