You are always going to spend money on your kids, even when they are grown. When life kicks in, it will be hard for them to find a career they love, and that pays well. Help yourself and help them by giving them a job. Employing your kids is smart.
Hiring your child has tax advantages for you and them. If your child is 18 years old or younger. They can keep up to twelve thousand dollars from federal income taxes. The tax deduction you get from hiring your kind reduces your tax bills.
You don’t have to pay payroll taxes for your children if they are 18 years old or younger. You can save a couple thousand while your child owes nothing to federal taxes. It is important that you are there helping them fill out their tax returns so they do it correctly. No need to give away money that can be saved.
When you have a business it’s important to have trustworthy employees. Hiring your kids is an easy way to find trust, worthy employee. You know your kids respect you and will follow instructions. You can depend on them to do their job.
You know your kids’ capabilities so, you know if they would be a good fit. If you know that they don’t do the kind of work your business requires you can train them. You are giving you kid new skills while gaining a valuable employee.
As your kids get older they may want to pursue different careers. Giving them a job will give them work experience and help them get hired at other jobs. It will be easy for them to get into the routine of working.
Most jobs only hire people with work experience. They will also learn proper etiquette while at work. They will know how to behave on the job. They will be used to waking up early and being on time. Your kids will be prepared for any job they pursue.
Working other jobs your kids would have to pay taxes. Thanks to the tax advantages that come with hiring your kid. You and your child can save some extra money. You won’t save as much as them but you will have some money to save.
Your child will have enough extra money to put it away. The money they have can be saved for retirement or a college fund. They could start saving for their first home or car. It’s never too early to start saving. Saving would take longer at another job.
Most parents become business owners so they can leave something for your kids. It is an asset for you and them. After you are gone you will need someone to run the business. Your kids learning how to run it early is best.
Having your kids work for you will show the ropes. So, when it’s time for them to step up they will know exactly what to do. They can also see if they like running the business. If they don’t they can find someone they think will run it better. They can also decide if they want to sell the business.
Hiring your kids will allow them to take care of themselves. Instead of asking you for money they will have their own. Being in control of their own money will help them be independent in their lives. They will feel like they are adults.
To help prepare them you should start giving them more responsibilities. You know how much they make because you pay them. Give them things to pay, for example, their car insurance. They will have more discipline when it comes to spending money.
The bottom line is hiring your kids will benefit both of. There will be some challenges. You will have to teach them to separate business and family. For the most part, it will be a good thing. You will need the help starting your business and they will need a job.
If hiring your child is not an option and you are looking for CPA help in Frederick MD, contact us today.