Before you look outside your immediate family to fill job openings in your business, you should be aware of the incredible tax benefits that come from hiring your dependent child to do the work for you. As a successful business professional, you understandably want to keep as much of your hard-earned cash in your family’s hands. The good news is that there are several legal options available that can help you to do that.
Did you know that you can pay a dependent child up to $10,000 for work completed without the child incurring any personal taxes? More than that, the business can write off that compensation and offset its tax liability. Furthermore, the business does not have to withhold taxes if the child qualifies for tax-exempt status. There are even exciting tax savings opportunities through retirement accounts and Social Security taxation that our team at JaxBooks can tell you more about soon.
Keep in mind that these benefits are specifically available when the child has an actual job and earns a fair wage for work completed. Do you have questions about these and other aspects of employer and personal taxes? JaxBooks is the bookkeeping company that you can turn to for accurate, comprehensive answers and for all of your business’s bookkeeping needs. Call us at 281-367-0372 or email info@jax-books.com
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