How to legally hire your kids
By Troy Frisby, Buzz60
You may be concerned about the implications of hiring your child. If you're hoping to help your kids learn a thing or two about the family business, there are guidelines out there to help you make sure you're on the up and up.
For one thing, the IRS can be extra cautious when kids are involved, particularly when they're your own.
You should ensure your child is doing the work you're paying them for, that it's work that is actually part of your business and that their wage reflects the work they're doing.
Basically, don't give them $60,000 a year to do some light filing.
Website design and social media tasks are among the sort of things the IRS approves of.
Make sure they're also filling out their W-2s and other important paperwork.
Of course, there are many advantages for your kids.
Aside from building a skill set, they can start saving for retirement and, if they're in a lower tax bracket, they can get the standard deduction of more than six grand.
A big bonus for you is that it's a deductible business expense.
USA Today reports that if your kid is under 18 no payroll taxes would be owed if "your company is a sole-proprietor or a partnership that you run with your spouse or a single-member limited liability company."
If they're not yet 21 federal unemployment taxes are exempted too.
Just follow the rules and don't pay your kids in chocolate coins and you should be fine.