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The new tax law makes hiring your kid a better idea than ever
Source:
marketwatch.com
- Jun 6, 2018
It’s summer, and that means it’s time for kids to have jobs. Hiring your child as a legitimate employee of your business can be a great tax-saving strategy. Here’s the deal.
Tax advantages for your kid
Say you operate your business as a sole proprietorship, as a single-member LLC that is treated as a sole proprietorship for tax purposes, as a husband-wife partnership, or as an LLC that is treated as a husband-wife partnership. Great! That means you can hire your under-age-18 child (as a legitimate employee) and his or her wages will be exempt from Social Security tax, Medicare tax, and federal unemployment (FUTA) tax. In fact, the FUTA tax exemption lasts until your employee-child reaches age 21. You can hire your child part-time, full-time, or whatever works for you and the kid.
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Category: General Business
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