Put Your 3-Year-Old on Payroll?

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[@daniellepreyar]

"Honey, 3 year olds are not allowed to work... just use some common sense" 😂😂🤣🤣😅😅

[@Maria-In-Motion]

I bet his accountant is an informant for the IRS. 😂😂😂

[@tracygaluszynski1868]

That would be entrapment.

[@mattbenz99]

It is more that this is a trick for a lot of business owners, but not universally applicable. Like Dave said, a baby can be a model. So if your business uses your kid as a model, you can pay them. Heck, your business doesn't even need to pay the full $6500 to max out the IRA. Once they qualify for an IRA, you can personally gift your child the remaining to max out the IRA. The accountant took what is a real strategy, and blew it up to comical levels.

[@NewLifestyleMentor]

If this guy’s “accountant” suggested it, then he needs to find a new accountant immediately. That’s just extremely bad tax advice!

[@amde8554]

Agreed he should be explaining gift limits to him instead

[@orangemountain457]

I suspect the accountant is just the caller.

[@StanTheMan4]

This guy’s “accountant” has been watching to many instagram reels and tik toks.

[@mensb1936]

Tick talk

[@floresnashvilledrummer]

"Research".

[@JustinCase780]

Dude setiously?.. who do you wish to speak with first.. the IRS or CPS?

[@nrg1123]

You know when Dave calls you "honey" he's about to lay down the law 😂

[@Tashas_Travels]

😂😂😂😂 so true.

[@orangemountain457]

I have a sneaky suspicion that when Dave calls the accountant a moron 1:48, the caller is laughing because the accountant is really the caller.

[@davidsensing2664]

I am an Enrolled Agent and have several clients that own businesses that do hire their kids to work for them. I stress that their kids must be treated like an employee with set duties and a time sheet. Also, their kids must be able to do the work and the pay must be market rates. Accountant that suggested that needs to be fired. The job of an accountant is to assist you with legally filing your taxes...not to help you help you cheat the government.

[@MathiasJarlson]

The government cheats the public, F em.

[@MrPmsavage001]

You the type to snitch on yourself 😂 fuck the government

[@tammya5403]

Agreed, weird the accountant would suggest that

[@patoh1679]

The system is rigged

[@davidsensing2664]

@@patoh1679 how?

[@brittany261]

1. He needs to fire his accountant. 2. I'm a Forensic Accountant, and if I audit this young man business, this right here will raise red flags and a lot of questions to be asked.

[@benjamingreen7884]

What do you mean raises questions? It's either illegal or its not. It's that simple.

[@fauxbro1983]

Lol. The baby putting in work. Why you hating

[@brittany261]

@@benjamingreen7884 Correct. As long as they can provide proof of work.

[@mike7933]

@@benjamingreen7884 it’s a form of tax evasion, from a tax accountant. (At least from the example in this video, it’s a case by case thing) I would not recommend doing it. Who is to say what a reasonable fair market rate is for a 3 year old from a family member (conflict of interest). Since the dad benefits from paying his son more rather than less money. You would also have to adhere to child labor laws, so you can’t hire a 3 year old for random office work.

[@greggalletta8679]

It’s OK to do this as long as you don’t get caught. Wink, wink.

[@enngee2339]

I clicked this video because I misread the title as a 3 yo on _parole_ , but this is just as wild.

[@random-nz7dy]

Dave: Tell the 3-year-old they're not to see the inside of a playground unless they're working in one. Until they get this freaking MESS cleaned up. Good lord! Deloney: mmmm. The child doesn't feel safe.

[@twinblade63]

LOL

[@jayden4606]

😂

[@TheSoulCrisis]

😂😂😂

[@hckycpa20]

Lol, best comment ever.

[@r8alvar]

The way I was raised, being called honey in a man to man conversation is fighting words.

[@retrojay86]

😂😂

[@vivianp5962]

Huh? I don't get it?. But that's ok. At least they seem to have your back. Guy-girl, girl- guy, Guy-guy, girl+girl,etc. Because being called "Honey" is a god sent that they have your back or being used. Either or.

[@georgewagner7787]

Dave's old enough to be his dad.

[@amireallythatgrumpy6508]

You clearly were not raised.

[@retrojay86]

@@georgewagner7787 a man has never called me honey

[@CarlGorn]

That accountant wants you to land in prison. Fire him, now.

[@KST6382]

This guy’s “accountant” makes Tik Toks 😂

[@joselozano356]

What ever happened to child labor laws this is insane

[@LifeBindeR222]

Well my cat cleans herself a lot so he gave me a great idea, I'll put my cat on a payroll as housekeeper and deduct her salary from the taxable income ☺️

[@merriem24]

😂

[@lorymanriquehyland]

I can’t stop laughing ….😂

[@alexroberto6353]

My three year old has more money than I had at 23.

[@danielr7903]

the children yearn for the mines lol

[@damondiehl5637]

My dad was a commercial fisherman and from the time I was very small I was in the boat helping him raise nets and sort fish. When I was about eight I started working with him in our market, dressing fish. He skinned them and I headed and gutted them. Saved him from hiring a man.

[@TheSoulCrisis]

Damn talk about starting early…….working straight out the pampers. 😂😂

[@kathryncashner3294]

If you own a business, employing your kids can be a great way to get them started in work life. Depending on what they do and how many hours they work (summers?) they can earn enough to contribute to their social security account, Roth, etc. But as Dave said, you MUST follow the law. Track their hours and duties, pay them with a 1099 or W-2, file taxes for them, etc. Depending on what happens later in their lives, this can be important. But at 3 and 5....no way outside of modeling or commercials for children/infant products.

[@jayanthony0814]

Rachel wanted to scam the IRS 🤣 when she asked how often do they audit 🤣🤣

[@nosondaitchman9073]

I know someone who did this. And then by covid when they jacked up unemployment benefits, he fired his wife and kids and made 600 per week per kid.

[@sadenight]

His children can be in the advertisements for the business and get paid legally for their time. Next time you see a dentist advertisement, 9 times out of 10 it will be a family photo. This is an unorthodox legal tax strategy.

[@GATOWN]

Do the opposite of this. Max out your 3 yo credit, that way when hes an adult his credit is ruined, and he has to work harder than everyone else to survive and hes forced to be successful

[@Sahith_Thopucherla]

Man tried to game the irs. A 3 year old does my taxes!

[@BusArch42]

I worked for a small business that had mom, dad and both teens on the payroll. The problem was they didn’t actually come in and work. The dad was hard working and was usually in another city running other businesses. While he was not around, the rest of them just didn’t show up. I couldn’t understand how they expected me on Saturday to work the place alone and somehow clock out for breaks and lunch. It was awful. The father approached me and Sid the accountant said you are not clocking out for lunch and we can get in trouble. I asked if he wanted me to just leave the machines running and lock the door? I’m not clocking out at minimum wage and working for free. That’s when it came out that his wife was supposed to be working that entire time with me. They were paying her but she never came in before noon on Saturday the entire two years I was there. We did about 75% of our business on Friday night and Saturday (according to what the dad told me). Yet the bulk of staffed hours were during Monday to Thursday! I worked 230 am to 1230 - ten hours straight on saturdays with no breaks. Totally illegal. I also worked Friday 5 to close so 15+ hours out of 19. His wife was so mad (I didn’t know why either) that I had spilled the beans on her scam. People who try to run their business like this will end up going under. After I left they sold the business.

[@dearbravesheep]

Tell me you view your children as objects without telling me you view your children as objects

[@krobdawg]

Nah he gotta be trolling lmao

[@bigbillmusic]

Real talk. Sound like a cartoon having a baby walking some dogs 🤣 he needs to take of his finances 1st before anything else

[@ronsmith4325]

Nice accountant, suggesting that one commit literal tax fraud.

[@MattSmith-vr4sr]

Im picturing the 8 year old smoking a pipe after his coal mine shift in 1890 lol

[@fsmoura]

Dave, I put my toddlers on payroll. Some peeps in the family think it's too harsh, but I think it's good for them, plus they look cute in their little overalls. Please advise.

[@eemr8439]

Wait until you get audited haha.

[@unfairsanic5089]

Recipe for disaster 😂

[@MrPmsavage001]

@@eemr8439 your allowed to have family work if underage

[@prestonj.7687]

dave’s face in the thumbnail😂

[@leecc1574]

Maybe they can be consultants 😂

[@georgewagner7787]

Better than his accountant

[@RCWeldingsgarage]

Lol, i hope that the IRS isn't watching this video. This is the dunbest caller I've ever watched on the Ramsey show.

[@USNavyVet_STG]

Wanna get audited by the IRS? Put your 3 year old on your company payroll. Geez.

[@natedogg890]

The IRS has entered the chat

[@DrMuffins354]

Everything is business expense until you get audited

[@RRK1]

Kid will be on payroll by the end of the week.

[@joeb1522]

How could anyone explain to a tax court judge with a straight face why they paid wages to a 3 year old?

[@2themaster]

I have a business with my wife. My account also brought up this idea a few months ago. I have a 6 year old daughter.

[@northharriscollege]

I doubt any accountant told him that 😂.

[@retrojay86]

😂

[@JakeStewart1343]

He has multiple personalities disorder. One of his personalities is a CPA. 🤷‍♂️

[@eemr8439]

I have heard this before from many "tax advisors" when they say you can put your children to work and pay them up to their standard deduction and then contribute to a roth IRA blah blah. This can be true if the child is actually doing the job and the age that they have allows them to do the job. Also there are other taxes like payroll taxes they have to pay and the business.

[@wbae1340]

Invest in passively managed ETFs and mutual funds, instead of actively managed mutual funds!

[@404TRUCKERTV]

Just open a custodial IRA or brokerage account in the child's name.

[@skylarofcourse]

Make the 3 year old a model for your company

[@StitchPup]

My ex and I owned a business and I kept the books. I had an accountant suggest something similar. I said, "Honey have you met my kids?" LOL.

[@choicemeatrandy6572]

Lol this is the wildest thing ive ever heard....😂 He's absolutely off his rocker

[@kelligreer3975]

I think the IRS auditors were after Dave!!! LOL

[@amireallythatgrumpy6508]

He gets audited every year They routinely audit anyone who has a net worth over $100M...

[@onsetaugust]

Make the toddler a mascot for the business. EZ.

[@v-2010]

As a CPA, that’s a terrible accountant. Also, ROTHs are made post tax so that’s not accurate either.

[@mimimonster]

Somebody needs to fire their “accountant.”

[@wickedbird1538]

😮😮I had a friend who put his wife on payroll, over $100K. The IRS disallowed the wages because they determined that she wasn’t doing any real work. They hit him with a huge penalty.

[@JoeoftheWest]

Sounds like "Render to Caesar the things that are Caesar’s, and to God the things that are God’s." I think this applies even if you aren't a Christian.

[@Raegoul]

My dog makes appearances on my wifes twitch stream via channel point redemptions. Can we pay my dog an appearance fee? ROFL

[@cooltkll]

did dave call the guy honey???

[@amireallythatgrumpy6508]

Yes he treated the guy like the piece of trash he is

[@jimmymcgill6778]

NO. That's tax evasion.

[@JakeSpradlin2]

Ahahahhah, 3 years old grinding daily

[@ryanl3812]

Wealthy people do this all the time. It's not crazy, it's just a tax maneuver above most of our tax brackets. This is not for the overwhelming majority of Dave's audience

[@DMS20231]

You can justify paying them once they can clean their own rooms. That’s something you could pay someone else to do. So you can hire them to do it. Before that, nah.

[@ebonneenelson2325]

What’s wrong with a custodial account? That’s what my almost 3 year old and my 1 year old have. I feel so proud as a parent that my babies are starting their lives in the black 😊

[@WalkAloneMedia]

The benefit to the Roth IRA is tax free gains. The custodial account is taxable

[@margotk538]

Caller should report the accountant from advising him to commit tax fraud. The IRS is no joke and he can go to jail for it. Was his accountant Saul Goodman? 😂

[@tomassmith2088]

Nah Saul would set it up so you don't get caught. This is walmart Saul Goodman. Saul Goodman at home

[@genxx2724]

No, but when he gets prosecuted in Federal Court, he Better Call Saul!

[@roberthoffmann3313]

Uniform Transfers to Minors Act (UTMA) would work.

[@katyedwards3935]

Have him/her sell lemonade or something and call it a day.

[@spankynater4242]

Put them on a flyer, and they become models.

[@philwood3396]

"Never ascribe to malice that which is adequately explained by incompetence". He did admit he's just now finding out about compound interest so this quote could ring true. But maybe it's not one or the other. I sense a bit of malice in trying to use his kid to profit and trying to pull one over on the law.

[@claybob]

His accountant wouldn’t have told him to do that if it wasn’t common practice. Paying a family member to not work at your company is just as much theft from the rest of the employees as taxes are theft.

[@thegamsta7133]

I haven’t really heard about this being a common practice. I think most accountants realize how risky it would be.

[@Dflonn]

He laughed so hard because he knows Charles and pictured him dog sitting.

[@ajones8008]

SO THAT'S HOW RACHEL GOT RICH

[@fsmoura]

I put my toddler on payroll and punching the clock everyday. Some say it's too extreme, but it's amusing to see him walk away at the end of Friday's shift, with heavy steps and slumped shoulders, and ask his mom for a double glass of milk in the kitchen. _"Rough week, lady!"_

[@genxx2724]

There’s a funny KZbin video with a tyke sitting at the kitchen table telling his grandma about all the work he has to do. Clearing a field, and a lot of unintelligible stuff about tractors and trucks.

[@AyeJye]

I’ve seen people on tick tok and on the internet who say to put your kids on payroll !

[@Justagirl325]

I just heard someone online to say that put your kid on payroll no details smh lol

[@tate6809]

This guy sounds like the kind of business owner who buys a new truck and boat "because it's a writeoff!"

[@ering7733]

I would focus on paying off debt and saving for your own retirement so your kids don’t have to worry about you when they are adults. Once your on good financial ground you could do the kids Roth or 529 plan

[@greggpurviance7252]

Really? Sheese, a unethical accountant needs to be fired

[@carmeshacarrington6718]

Actually you can pay the 3yrs of lfor play therapy with the dog or ads for their company. Feeding the dog, getting the dog water, there are things a 3yr old can do and get paid

[@BenState]

Why are taxes extortion? Such a weird comment? Do you not get any services?

[@Campelover]

It's not appropriate that nothing was mentioned about state law requirements for age to work.

[@amireallythatgrumpy6508]

It's not appropriate to mention anything about laws that only apply in very localised areas. If it's not universal, don't mention it on a universal podcast.

[@khanhnguyen-hy6hg]

My bet is that the accountant doesn't realize the kids are that young.

[@queen.kristal8395]

Why don’t you just gift them money into a account for a gift tax until their a certain age to make their own decisions instead 3 year working ?most kids who worked young hated it and were miserable

[@khanhnguyen-hy6hg]

Gift money can't get into the Roth account. The original caller wants his kids to have a head start on their retirement saving.

[@queen.kristal8395]

@@khanhnguyen-hy6hg well that’s on him Doesn’t mean they want it as they get older

[@3monsterbeast]

omg the dogs 😭

[@Thebulbacardi]

AT 4:14..... Relax Rachel your goin to get your time😬

[@joelkaben]

Lol, funny caller 😂

[@chrisc8603]

did the accountant know the ages of the kids?

[@BassPlayer60134]

I have close friend who does this with his kids but worse. He doesn’t own a business so he pays them for household chores. He insists it’s legal and that Dave Ramsey is an idiot.

[@jillgott6567]

If an 8+ year old helps to clean cages, walk well behaved dogs, assists with cleaning up the area after bathing the dogs then yes, a reasonable amount paid LEGALLY ! But, to say a 3 year old is a trusted, responsible employee just for tax purposes is so WRONG ! For one thing it is dangerous to have a 3 year old around interacting with dogs that do not live in the same household. Dogs in a strange environment can be extremely sensitive or upset do not risk your child's life. I hope you FIRED THAT ACCOUNTANT

[@johncameron4194]

He’s setting himself up for hurt

[@chuckiedavidson719]

If you are a photographer and you take pictures of your kids and use them to advertise your business you could get away with that. But if you are gonna do that you have to make it make since.

[@ruthirwin8222]

They all audit after hearing this

[@bennettconnelly7899]

Are the children there for dogsitting? If they are there. They are justified in maxing out their Roth IRA. It’s called a custodial Roth IRA meant exactly for children if they choose to work.

[@lepoj]

Rachel has worked for her rich daddy all of her life and has the nerve to tell us what it's like in the real world

[@chriswright2439]

Why would a multi millionaire like Dave tell the general public how to beat the tax system. That doesn’t benefit him or the people in his shoes. Who do you think would have to make up for the taxes saved by the average American citizen?? People like Dave who are wealthy!! He would never give advice to beat the tax system because ultimately, it hurts him!

[@gradywray5391]

With new rules. Start 529 plans for them instead. They can convert to Roth IRAs later if they dont need the school money.

[@shailee9762]

Saw a TikToker said he and his wife are putting their two years old on payroll. I was thinking about the legit of it.

[@Delta-qz3mb]

With these investment steps, isn't he basically saying put money into big companies and just piggyback off of them? Especially in mutual funds since the money is going hundreds of directions. Am I wrong to see it as a piggyback system basically?

[@smarties410]

This guy is very likely to go against Dave's advice. The IRS will be waiting to pounce on him now!

[@MistaTofMaine]

If reasonable can actually be a good idea. I worked over the table my first summer jib when i could have worked under table. I used little of money i earned from that fish farming job (just over minimum wage) and almost all went into roth ira i started. I was 15 and some people thought was stupid why id claim but because my yearly income was so low little was paid in tax anyway. The 2000 or so i put in is more like 20000 now.

[@Geletin911]

Did he seriously attempt to make an argument that taxes are "moral" - what the actual fuck?

[@amireallythatgrumpy6508]

Taxes have nothing to do with morality.

[@cantgetright742]

The kid would pay income tax. A toddler can’t claim their self as a dependent but they can have income. Put him on business cards and flyers and pay him a base with commission. Not really avoiding tax though. They’re still going to pay both ends of payroll tax and the kid is going to be taxed right off the bat. I wouldn’t put it in an IRA though. Why would you want to put the money where it isn’t useable for the next 56 years? Do your compounding interest elsewhere. Don’t understand making your money illiquid Keep it simple.

[@DMS1010]

Can someone check this accountant’s license? Ethically/morally disgusting. In addition this caller should look in the mirror. Yeah I already know how judgemental I am.