{"id":2985,"date":"2024-02-02T15:38:00","date_gmt":"2024-02-02T21:38:00","guid":{"rendered":"https:\/\/www.connerash.com\/blog\/?p=2985"},"modified":"2024-05-03T15:42:06","modified_gmt":"2024-05-03T20:42:06","slug":"hiring-your-child","status":"publish","type":"post","link":"https:\/\/www.connerash.com\/blog\/hiring-your-child\/","title":{"rendered":"Hiring Your Child"},"content":{"rendered":"
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Looking to keep your kids occupied after school, on weekends, or during school breaks? Depending on their age and abilities, think about hiring them to work for your business. Both you and the child can benefit.<\/p>\n\n\n\n

BENEFITS<\/h2>\n\n\n\n

Working can help your child develop a sense of responsibility, learn new skills, be productive, and see the reality of holding a job. It can also give them a step up on their peers when it comes time to enter the workforce full-time, whether for your business or elsewhere.<\/p>\n\n\n\n

For you personally, you\u2019ll know where your child is and what they\u2019re doing and gain the satisfaction of seeing them grow in confidence and ability.<\/p>\n\n\n\n

And because your child will have earned income, you can contribute to an IRA for them subject to the IRA contribution limits.<\/p>\n\n\n\n

A TAX PERK FOR YOUR BUSINESS<\/h2>\n\n\n\n

Your business generally doesn\u2019t have to pay Social Security and Medicare taxes for your child\u2019s work if they\u2019re under age 18. Similarly, payments to your underage-21 child aren\u2019t subject to Federal Unemployment Act (FUTA) tax.<\/p>\n\n\n\n

In addition, as with any employee, your business can deduct the child\u2019s salary and potentially lower taxable business income. The child gets a tax break, too. They won\u2019t have to pay income tax if their income for the tax year is less than the standard deduction amount for that year ($14,600 in 2024).<\/p>\n\n\n\n

GUIDELINES<\/h2>\n\n\n\n

Following these general guidelines may help avoid problems when hiring your child.<\/p>\n\n\n\n