Hiring your children in your business in 2023! Ask a CPA!

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Күн бұрын

Пікірлер: 13

@AskaCPA Ай бұрын

Tax or accounting question? Head over to www.askacpa.co/ and leave us a note. You may see your question in our next video. Don't forget the subscribe -> www.youtube.com/@AskaCPA?sub_confirmation=1

@JB-jz8vd 9 ай бұрын

Thank you for this video. My CPA disagrees with the info I have seen in countless articles and videos stating that the IRS allows any LLC that is wholly owned by a child’s parent to pay wages to their child under 18, up to the standard deduction, without having to withold payroll taxes and annotate as outside labor as another expense on Sched C. No need to issue w2 or 1099 to your qualifying child. Payments can be transferred from LLC’s account directly to child’s account. Payroll system not needed. Child does not have to file a return when earnings under standard deduction.

@AskaCPA 5 ай бұрын

Maybe time for a new CPA? The IRS code sections and instructions are linked in the video.

@juansanta2595 4 ай бұрын

What child bank account that you all use that allows direct deposits and withdrawals? I currently use Greenlight, but I am not happy with them. My children are 6 and 4 years old, they do light cleaning, filing, and modeling for my business.

@AskaCPA 4 ай бұрын

Hey Juan, most banks will allow you to set up accounts for your children, although they will now have earned income and would qualify for a Roth IRA! Thanks for watching!

@sophiathe380sl Жыл бұрын

Thanks for the great information. My accountant said that I need to get a payroll company to do this. I thought that i could just start writing checks but it doesn’t sound that easy. Any thoughts on this?

@AskaCPA Жыл бұрын

Hey Sophia! I'd send your accountant IRS publications 929 and 501. You don't need to run the payments through a payroll company. Just make sure you're coding them correctly to "Outside Labor" to avoid any issues. Thanks for watching!

@sophiathe380sl Жыл бұрын

@@AskaCPA Sounds like I may need a new accountant. 😄 let me know if you happen to be in California. The videos are great.

@AskaCPA Жыл бұрын

I'm in Texas, but I have many clients in California. I'd be happy to jump on a Zoom and chat.

@sophiathe380sl Жыл бұрын

@@AskaCPA I’d like to have my CPA in CA. My aunt is in Texas. I’ll ask her and let you know. Thanks.

@sophiathe380sl Жыл бұрын

@@AskaCPA what’s your contact info?