What is the name of your state (only U.S. law)?
Many tax professionals recommend paying children (up to the standard deduction) between the ages of 7 and 17 from a sole proprietorship as a way of reducing taxable income, teaching children the value of work, and avoiding payroll taxes. I have been doing it for a number of years and it works very well as long as you file a W2 and the appropriate 941.
If your children are over 17 (18-24) but are full-time students and are still your dependents, can you still pay them for work done for the business and avoid payroll taxes, unemployment taxes, and workman's comp??
Thanks for any input or even where to find the tax law on this subject
Many tax professionals recommend paying children (up to the standard deduction) between the ages of 7 and 17 from a sole proprietorship as a way of reducing taxable income, teaching children the value of work, and avoiding payroll taxes. I have been doing it for a number of years and it works very well as long as you file a W2 and the appropriate 941.
If your children are over 17 (18-24) but are full-time students and are still your dependents, can you still pay them for work done for the business and avoid payroll taxes, unemployment taxes, and workman's comp??
Thanks for any input or even where to find the tax law on this subject