• Reduce Your Income: Hire Your Kids

    Reduce Your Income: Hire Your Kids

    If you run a small business that is not incorporated, consider hiring your kids to reduce your tax bill. Here’s why. If you own your own business, by hiring your children you can save in the following ways: Salaries paid to children under 18 are not subject to Social Security or unemployment taxes (in most states). No Federal withholding taxes are required if the child is under age 21 and earns under $5,950 per year. Even if the child must pay taxes, the child’s rate of tax is normally lower than your own rate. You should not have to pay

    Read More