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With summer in full swing, many business owners find their children eager to help out at home and in the office. Not only does this provide valuable work experience for the kids, but it also presents a strategic opportunity for parents to reduce their overall tax bill. Paying your children as part of your business can be a beneficial strategy if done effectively! Understand the Tax Benefits The IRS allows business owners to deduct wages paid to their children, as long as the compensation is reasonable for the work performed. For sole proprietorships or partnerships where both partners are parents, wages paid to children under 18 are exempt from Social Security and Medicare taxes. Define Clear Roles and Responsibilities It’s important to assign your children legitimate jobs within your business, and their tasks should be appropriate for their age and capabilities. Common roles for younger children include filing, cleaning, or simple administrative and front desk tasks. Older children can handle more complex duties such as managing WORK EXPERIENCE FOR KIDS DOUBLE TH
Adventure Awaits CRAFT A BUCKET LIST OF FUN ACTIVITIES FOR YOUR KIDS For many parents, the end of the school year begins a long, challenging stretch of unstructured time when children need something to do. Social media personalities are rushing to fill the gap by suggesting activities to inspire parents and kids alike to make the most of their time off. The term “bucket list” was popularized by a 2007 film of the same name. It originally denoted an inventory of experiences or achievements you hope to accomplish before you die. But the idea of figuring out what you want to do in the future is handy at other stages of life, too. Young adults and parents have embraced the term as a tool for planning summer activities. Framing her suggestions as a “summer bucket list,” one YouTuber, Advice by Angel, suggested no less than 70 summer activities, from painting old shoes or taking pictures with a Polaroid to camping on the beach, and included beautiful photos to illustrate each suggestion. Among her more creative suggestions are making Nutella pizza, cliff jumping, and a trampoline sleepover. To get your children involved, one resourceful mom, Amy Pettiford, shows on a TikTok video how she listed about 70 summer bucket list choices on a posterboard in various colorful markers and mounted it on the refrigerator. She suggests checking off activities as you do them and adding the date. Among her entries are making a leaf scrapbook, jumping over waves, painting outdoors, and building a blanket fort. Making and using these lists can teach children some valuable lessons. For example, it can inspire parents and kids to think about how they spend their days. It encourages them to do things they might not otherwise pursue, such as Pettiford’s suggestions to dance in the rain, serve a neighbor, gaze at the stars, or perform a random act of kindness. Some items a parent might add, such as Pettiford’s “go garage sale hopping,” can create an opportunity to teach children how to earn money.
social media accounts, helping with bookkeeping, or customer service. Clearly define their responsibilities to ensure compliance with IRS regulations.
Set Up Proper Documentation To make sure your business complies with tax laws, documentation is
SCRUMPTIOUS STRAWBERRY SHORTCAKE
When fall arrives, your children can return to school with a sense of satisfaction that their summer vacation has been well spent!
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