Paying Kids over 18 in Your Business

[@a.whitneyshea7235]

Great info... but you are full with a waitlist! Referrals/suggestions on where else to go?

[@nh6405]

Will I pay less taxes if I put my children on payroll and hire them as employees compared to paying their tuition expenses for college?

[@MarkJKohler]

Hey! My answer is going to vary depending on the situation...without adequate background information my advice won't be accurate. To get that personalized answer, please contact my Account Specialist, Emily! Email: [e-mail] Phone: [phone] ext. 2065

[@twoheartshomesforseniors]

Wow. Great information. Is the law for kids under 18 still 5,000 tax free?

[@charjones5875]

What happens is they are 21 and married?

[@tjb8527]

Would there be any issues with issuing a 1099 vs. making them an employee? Also, does this get around placing them under worker's comp?

[@MarkJKohler]

Hey Tom! I have many strategies when it comes to family working for you. There's WAY too much information to write in a short comment. I have trained all of the attorneys at my firm, so with the help of my assistant Emily, we could get you scheduled to discuss these strategies. Her number is [phone] ext. 2065.

[@toochi84]

Gotcha, so the only thing that changed for 2019 was the income limit increase to 12k

[@iamOAKland]

Yes... job creators get more tax breaks...

[@MarkJKohler]

Yes!

[@MarkJKohler]

Well, let me add the Standard Deduction is $12,200 in 2019....and the child STILL needs to earn it. Hope that helps.

[@1ofnoother]

Does your company have to make enough to pay them? For example, what if your business if not profitable enough to pay them $20k? Or $6k? But you have enough in savings to provide for their college expenses. Could you technically put the savings into the business to pay them instead? Even though it isn't direct income from the business? Thanks!

[@lakshmikrishnan5295]

Hi Mark, I run a S-CORP and my hubby runs a Sole proprietorship , My s-CORP pay his sole LLC for various works. Can I pay my kids under 18 thru his LLC? Which form do we need to fill with IRS for the Kids Payroll.

[@MarkJKohler]

Great questions Lakshmi! I will answer it LIVE during my live stream today at 4 PM Mountain Time. Don't forget to tune it!

[@ampelectric]

Hi Mark I guess I’m doing something wrong but my daughter had an income from my business totaling $6100 which I paid her with a w9 and now she has a 1099 misc for 2019 but I tried filing with turbo tax online and it says that she would owe $860 from that income is that right? Or what am I missing or doing wrong? Please help

[@coolyoda18]

Can this be done if one has a solo 401k

[@illmatic33]

What state do you practice in?

[@MarkJKohler]

We have 4 different office locations, but we help people nationwide!

[@Alexander-di2eb]

What if my kid has a W-2 making about $70K a year and I have a sole proprietorship where I want to hire him to do part-time bookkeeping work?

[@MarkJKohler]

Tricky. It doesn't mean you still don't want to pay them. It depends on your income tax bracket compared to that of your child. IF you are going to pay them, AND they are doing legitimate work, maybe their in a lower tax bracket than you too. Talk to your CPA/Accountant about it and in 20min they can make a plan. If you need a review with our office, please talk to my assistant Josie Stewart at 435-865-5866. Thanks

[@igotyoubeat]

The issue here that I see is your passing on the 15% self employement tax onto your kids … obviously this kicks in once their income is actually taxable

[@jrb-yz6jt]

What if my daughter (22) is married?

[@ik5412]

I like you ideas, they are very creative.

[@MarkJKohler]

Thanks so much! I appreciate it!