DO NOT Place Your Children on Payroll! Here's Why...

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Hiring your children for your business has certain tax benefits and even deductions that could help you save loads of money. However, simply placing your children on payroll is not going to cut it with the IRS. There are a few extra steps you're going to have to take to get those tax benefits, but we promise, they are WORTH IT. Check out our top 3 reasons to not take this specific tax-write off on today's Taxes Made Simple.

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*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.

#taxes #taxfreeliving #taxexpert #taxreduction #llc

[gracegarden]

Make a job description for the position you are hiring them for. Have them go through and interview as well and sign a contract for work to be performed as well as frequency. Also have them fill out time cards, I. The process you are teaching them valuable professional and organizational skills.

[michaelmcdaniel]

You always over deliver on your videos in a clear and concise manner. This is what makes you the GOAT in your field. Thanks and keep up the excellent work.

[stevegarza]

Is there a benefit to paying your children via W-2, 10-99 or just as an employee? Can you please explain the differences. Thank you.

[I.Visionz]

Wow I was literally filing my taxes and came across this video.. My daughter actually does work in my business but it's only certain holidays, she does chocolate covered treats and fruit. I always pay her in cash. She only makes about 2k a year. I definitely need help

[honeyhoney]

You make something so boring so interesting, taxes. I actually enjoy learning watching your videos. You are the master at explaining, I can just easily follow what you are saying even if I am new to the topic. Thank you for taking the time to share and creating such informative videos, the mic is a +++

[brittklin]

So I own a daycare and I use my children in the ads. Would this count as marketing??

[mmaglaya]

Instead of tracking hourly work of a child, could it be easier to say we’re paying them a monthly salary, not an hourly wage?

[BlueRagTop]

Can someone clarify age restrictions? Can my 9 year old do non-hazardous work in my architecture/real-estate business? (Sort mail, clean office, etc.)

[paulaarrington]

The value that you bring to YouTube is immeasurable all I can say is thank you for what you do and your channel.

[bfflorida]

He is now my favorite Youtuber and I don't even like Taxes. On serious note the information and content generated from his channel is by far the best I have seen in years.
THANK YOU for that.
Much respect from Florida 😎

[t-bone]

I have been a W2 employee for several years now, looking to open up my own LLC. while working under the W2, I get paid, what we call, split checks. which means, i get paid by the hour with overtime after 40, my truck gets paid a certain amount per hour (rig pay), which is un taxed, and no overtime. I also get paid a certain amount of Perdiem (untaxed) every day. could you do a video on how employers go about paying their employees. I don't understand how the rig pay and prediem get paid on the business side of things. If i were to offer that to my employees.

[tmn]

Somewhere between pitfall #2 and #3, i got lost. For #2, paying your children through a management company rather than putting them on payroll under corporation. I get that. But for #3, how do I properly document tax holding for the children if their salary comes from management company, not the corporation itself? Appreciate your thoughts.

[cootsdancer]

Last ? — I’m sorry…. 😬

How are parents helping kids contribute to the Roth IRA if their w2 is set up as a tax-exempt family employee?

Do they have to be set up for tax deductions, in order to contribute to the Roth IRA?

& then file a return to get a refund?

Thanks in advance. You’re amazing!!! 🙏🏼

[lacosaccountingservice.]

I have my mom on payroll and I do exactly what you said, I give her sometimes direct deposits and sometimes paper checks deposited in her account.

[bennyl]

how about the state tax? if you pay your kid under standard deduction your kid also subject for state tax, am I correct?

[taliesin]

Hi, I tried to schedule a consultation, but there are no appointments available. I have a child-employment question as a result of watching one of your other videos indicating that multi-member LLCs offer better audit protection. I'm divorced with joint legal and 40% physical custody of my daughter (I e. My ex is the custodial parent for the purposes of claiming the dependent). Can I form a M-LLC and make my daughter a 1% member and still pay her up to the standard deduction tax free? Do I also need to pay her 1% of annual distributions and is that also tax free (income and FICA)? Is the pay to my daughter still deductible from my LLCs annual income?

[zmartgvt]

Super high quality content and charisma.. well done you and your team 💯

[KKRRenewables]

Can I create a management company LLC and hire my kids to that company. Then from my sole proprietorship pay the LLC, the LLC pays the kids, and my sole proprietorship takes a tax break on the expense to the LLC?

[bluefreeskyforeveryone]

If I open Management LLC to gets fee for a management from s-corp and then pay to kids, then the LLC should pay %15 for self-employed tax?
Correct?
Or I missed something?

[low_keycollector]

Hey Karlton. Learning lots from your videos. Thank you! Question, does any of this apply to siblings and/or other family members? Perhaps something in relation? 🤔