Hiring Family Help and Taxes
Presented by Mark Phillips
Well, as you might be considering a job in your business for a child or parent you may enjoy knowing that the IRS may offer some modest tax relief. In particular you may find that you need not pay Social Security, Medicare, and FUTA (unemployment) tax on wages if the circumstances are right.This can amount to a savings of over 15% on paid wages.
How this can matter: You elect to hire a minor child of yours to work for your business. The business is a sole proprietorship or parent owned partnerships only - not a corporation.
Why would you do this: To have the earnings fund a Roth IRA for your child and are invested for use in 50+ years. All the earnings accumulate tax free and there is no tax on the growth upon withdrawal at or after your child reaches age 59.5.
Read more: Family Help
No comments:
Post a Comment