• Michael Kelly, CPA

Hire your kids!

Hiring your family can lower your payroll tax bill.

No Social Security or Medicare tax is due if sole proprietors or husband-wife partnerships hire their kids who are under age 18. The same applies if a child works for a parent’s one-person LLC that’s disregarded for tax purposes.

Also, federal unemployment tax isn’t owed on their salaries until they reach 21. If employing your spouse or your parent, then the working spouse’s or parent’s wages escape federal unemployment tax, but are subject to income tax withholding and Social Security and Medicare taxes.

Added bonus...... it gets your kids off the COUCH!

35 views0 comments

Recent Posts

See All