The benefits of hiring your kids to work in your business

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Kids are great!

(And very expensive!)

Did you know that as a small business owner, you may be able to hire your children? This can result in a financial benefit to both you and your children.

This article nicely covers the ins and outs of legitimately hiring your children to work in your business.

One of the key tools to make this happen is using a payroll program like Gusto so that everything can be done correctly and above board.

TLDR

• Hiring your children under the age of 21 can be beneficial if you file your business taxes using Form 1040 Schedule C
• Your child must be doing legitimate work (you can’t hire your 8-year-old to do tax work)
• Your child must be paid a reasonable rate (you can’t hire your 10-year-old at $100/hour)
• You have to follow the usual employment rules (I recommend Gusto to manage that)

There are a lot of opportunities here. Product sellers could hire their kids to help make products or package and ship. Many businesses could benefit from a teen who is awesome at photography. Aspiring teen writers could help with content creation, and many teens know the ins and outs of social media better than we do!

Small Business Updates and Tools

LIVE Bookkeeping Q&A

I am hosting my first-ever live bookkeeping Q&A session. This first session will focus specifically on Etsy bookkeeping with QuickBooks online and will be held on Wednesday, April 17th at 12:00 PM Eastern.

Tax questions related to Etsy can also be covered. If you have a specific question regarding your bookkeeping that you need answered, then this session is for you. This first session is being offered at a low introductory price.

Turbo Tax

I just completed a 2023 bookkeeping clean-up for a new client. It was music to my ears when she emailed and said that with cleaned-up financial statements, she was able to easily file her taxes with TurboTax. Did you get your taxes done yet?

Tax Credit for Day Camp

You may be able to take a tax credit for day camp and other childcare expenses you might incur this summer (or all year long). This short video from the IRS explains how it works and how to determine if you qualify.

Featured Business

Today’s newsletter is sponsored by Anisha of Anisha Kharkhanis Boutique.

This children’s fashion boutique brings dreams to life. They specialize in offering an exquisite array of outfits tailored for children. From charming dresses to adorable swimsuits, cozy loungewear to seasonal attire, every piece is meticulously crafted to elevate your child's style quotient while ensuring utmost comfort. Check out this adorable dress!

If you're interested in getting your business in front of potential customers and clients, please fill out this form.

On a Personal Note

As I write this email, our family is participating in our church’s outdoor Easter performance. It’s a lot of work but a lot of fun to participate with over a hundred other church members.

My son gets to cry when Lazarus dies and rejoice when Lazarus is raised to life. It sounds like there is a lot of drama with the middle school boys in that scene.

In my scene, the youth group girls mourn while Jesus and the thieves, played by the high school boys, “hang” on the cross.

The youth group girls have been hiding junk food at their scene to eat during breaks, and the poor high school boys shiver as the nighttime temperatures plummet. Such fun!

Talk soon!

Sarah