3 Steps to Hire Your Kids the RIGHT Way
Aug 01, 2023Social media often presents a skewed perspective, showcasing only the positive aspects of certain activities since it essentially functions as a form of public marketing. Understandably, individuals rarely highlight the challenges or failures that accompany their endeavors. Recently, this trend has been evident in posts discussing the tax-saving strategy of hiring one's kids.
Many posts portray this strategy as a straightforward process, suggesting that merely transferring money into their accounts and deducting it from their taxes is all it takes. However, the reality is not quite that simple. I'll shed light on the proper steps to hire your children legitimately and offer some essential considerations to protect yourself in the event of an audit by the IRS.
The key takeaways from this episode are:
1. Social media presents a skewed perspective, highlighting only the positive aspects of activities and often neglecting the challenges or failures involved.
2. Hiring one's children as a tax-saving strategy is portrayed as a simple process on social media, but in reality, it involves several important considerations.
3. To hire your children legitimately and avoid issues with the IRS, you need to be aware of your business structure, use proper contracts, and define appropriate job duties for your children.
What you’ll hear in this episode:
[1:01] Why most things that are shared on social media do not dive into the fine print and details?
[3:15] The first thing to be aware of when hiring your kids: your business structure
[5:59] The second thing to be aware of when hiring your kids: contracts
[8:25] The third thing to be aware of when hiring your kids: job duties
[13:51] What is required to pay a child the proper way to make it legitimate in the eyes of the IRS?
Related Episodes:
Revenue Goals That Actually Move the Needle
Ways to Increase Revenue If You Hate Sales
Protecting Your Legacy Through Estate Planning with Clara Delgado Rossell
Resources:
Tactical Resources:
5-Day Financial Mindset Refresh: https://www.keepwhatyouearn.com/refresh
Create a Custom Podcast Playlist: https://quiz.tryinteract.com/#/6303d4c525b1e80018d47cfa
Grow Cash Flow for Your Business: https://www.keepwhatyouearn.com/endless-cash
Tax Deduction Guide: https://www.keepwhatyouearn.com/tax-deduction-guide
CFO Power Session: Text POWER to 860-609-6374
See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator
Additional Resources & Connect with Shannon:
Find everything you need at https://www.keepwhatyouearn.com
Questions about this episode? Text me! https://my.community.com/shannonweinsteincpa
Hire us: https://www.fitnancialsolutions.com/accounting
Find me on IG: https://www.instagram.com/shannonkweinstein/
Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
