EP24: Hiring Kids To Save Money On Taxes

Wealthy CEO Accelerator Podcast

We have many Amazon sellers working with us and hire their children to unpack their packages, putting labels, and making sure codes match in the inventory. Their kids also do the marketing materials and post them on social media. They're able to do research, shred documents, sweep the floors in a warehouse or storage, or help out in shipping products to particular people. There's so many things that children can do for you and you can legally pay them. In this Wealthy CEO Accelerator podcast, learn how hiring kids is an overlooked genius tax planning strategy that helps you save money and cut back thousands of dollars from taxes. KEY TAKEAWAYS: ✔️Hiring your kids is a perfect legal and ethical system that also allows you to teach them to be smart about money and acquire work ethics at an early age. ✔️First assess what your child can do. From ages seven to 17 years old, hire you little humans and establish work that is appropriate for their age and put that into writing. Because if the IRS ever asks you, you want to make sure that you have that on file. ✔️Learn every step required to ensure you get accurate deductions and get protected from potential IRS audits. Getting workers comp insurance, Department of Labor registration, filing payroll returns, and other additional requirements will command huge penalties if not done properly. ✔️It would be best to pay them a thousand dollars monthly and not exceed more than $12K for the entire year. ✔️Pay your child to a separate bank account. Many business owners and entrepreneurs don't have a different bank account for their kids. You would need to go to the bank, open a custodial account and pay them there weekly. ✔️There's much paperwork and filing required; therefore, you need to ensure that you hire the proper accountants to help you get documented adequately that your child worked for you in your company because the IRS may not believe you. ✔️ When hiring your kids, you need to file your payroll returns every three months according to the specific dates of your state and IRS. We help clients save at least 10 -15K dollars yearly with our virtual CFO package! We at Empire Tax Professionals look at things at a whole different level. We bring no-nonsense and straightforward money-saving strategies to help you grow your business like it's ours. PM us for a free consultation with our tax experts.