If you’re a business owner hiring your children this summer, you can obtain tax breaks and other nontax benefits.
The kids can gain on-the-job experience, spend time with you, save for college and learn how to manage money. And you may be able to:
- Shift your high-taxed income into tax-free or low-taxed income,
- Realize payroll tax savings (depending on the child’s age and how your business is organized), and
- Enable retirement plan contributions for the children.