{"id":13924,"date":"2024-12-29T19:39:38","date_gmt":"2024-12-30T02:39:38","guid":{"rendered":"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/"},"modified":"2026-01-26T17:09:20","modified_gmt":"2026-01-26T17:09:20","slug":"putting-your-kids-on-the-payroll","status":"publish","type":"epkb_post_type_1","link":"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/","title":{"rendered":"Putting Your Kids on the Payroll"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 ez-toc-wrap-right counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table Of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Key_Takeaways\" >Key Takeaways<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Tax_Advantages\" >Tax Advantages<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Retirement_Accounts\" >Retirement Accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Company-Sponsored_Retirement_Plan\" >Company-Sponsored Retirement Plan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Education_Credits\" >Education Credits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#IRS_and_State_Concerns\" >IRS and State Concerns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Mom_and_Dad_your_parents\" >Mom and Dad (your parents)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Taxpayers_Comprehensive_Guide_to_LLCs_and_S_Corps_2025_Edition\" >Taxpayer\u2019s Comprehensive Guide to LLCs and S Corps 2025 Edition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Talk_to_a_Small_Business_CPA_About_Your_Situation\" >Talk to a Small Business CPA About Your Situation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Schedule_Discovery_Meeting_Now\" >Schedule Discovery Meeting Now<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Can_I_pay_my_child_without_them_owing_income_tax\" >Can I pay my child without them owing income tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Does_my_business_entity_affect_payroll_taxes_for_kids\" >Does my business entity affect payroll taxes for kids?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Can_kids_contribute_to_retirement_accounts\" >Can kids contribute to retirement accounts?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#What_are_the_benefits_of_paying_my_child_instead_of_gifting_money\" >What are the benefits of paying my child instead of gifting money?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#What_proof_does_the_IRS_require\" >What proof does the IRS require?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Can_paying_my_child_help_with_college_tax_credits\" >Can paying my child help with college tax credits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Is_there_a_minimum_age_to_hire_my_child\" >Is there a minimum age to hire my child?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Can_these_strategies_also_work_for_my_parents\" >Can these strategies also work for my parents?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Whats_the_risk_of_not_following_the_rules\" >What\u2019s the risk of not following the rules?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/#Do_wages_to_my_child_affect_claiming_them_as_a_dependent\" >Do wages to my child affect claiming them as a dependent?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text css=&#8221;&#8221; woodmart_inline=&#8221;no&#8221; text_larger=&#8221;no&#8221;]By <strong>Jason Watson, CPA<\/strong><br \/>\nPosted Monday, December 30, 2024<\/p>\n<div class=\"overview\">\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Putting your kids on payroll can shift income into their lower tax brackets.<\/li>\n<li>Wages up to the standard deduction ($15,000 in 2025) can be tax-free for the child.<\/li>\n<li>Tax treatment differs by entity type: LLCs avoid payroll taxes for children under 18, but S Corps and C Corps do not.<\/li>\n<li>Family Management LLCs can provide a workaround for payroll tax issues in S Corps.<\/li>\n<li>When your kids are on your payroll, they can contribute wages to IRAs or Roth IRAs, reducing household taxes and building retirement savings.<\/li>\n<li>Company-sponsored retirement plans, like 401(k)s, can allow much higher contributions if set up correctly.<\/li>\n<li>Education credits may be claimed more effectively by the child if parents\u2019 income is too high.<\/li>\n<li>Work must be legitimate, properly documented, and compliant with IRS and state labor laws.<\/li>\n<li>Similar strategies may apply when supporting parents, depending on income and ownership structure.<\/li>\n<\/ul>\n<\/div>\n<p>Should you pay Junior to vacuum? Perhaps. While most parents can\u2019t get their children to clean a counter or put away dishes, perhaps putting them to work at the office is a good option.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Advantages\"><\/span>Tax Advantages<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are some minor tax advantages to paying your children- for example, you can pay your child $14,000 in wages, and since the standard deduction is $15,000 (for the 2025 tax year) the child will not have any taxable income. They can also gift this money back to you, or help pay for groceries.<\/p>\n<p>Kidding aside, for you to give your child $15,000 to save for college or pay for college, it takes probably takes $19,000 or more in parental income because of the income taxes.<\/p>\n<p>However, there are some pitfalls. If you are paying them through an S Corp, you must also pay Social Security and Medicare taxes at 15.3%. Therefore, your marginal tax rate needs to be 22% or higher for this to make sense. Conversely, if you pay yourself this income through a shareholder distribution and you are in the 10% tax bracket, you will unnecessarily pay about $795 in general taxes (since payroll taxes are 15.3% and your tax savings is 10%, 5.3% x $15,000 is $795).<\/p>\n<p>You could also pay your child more money since their tax bracket is probably lower than yours.<\/p>\n<p>For regular LLCs, if your child is under 18, the business does not have to pay employment taxes such as Social Security and Medicare. You can also avoid Unemployment taxes until the child turns 21. But for S Corps and C Corps, Social Security and Medicare taxes are paid regardless of age.<\/p>\n<p>However, you can set up a Family Management LLC (there are other branded or marketing terms for this) where the S Corp pays a fee to an LLC which then turns around and processes payroll for the children. You can read more here-<\/p>\n<p><a href=\"https:\/\/wcginc.com\/tax-support\/reducing-taxes\/\">wcginc.com\/6177<\/a><\/p>\n<p>Your children are going to take your money anyways- might as well make it tax-advantaged.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Retirement_Accounts\"><\/span>Retirement Accounts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Your child can contribute to a retirement account and reduce your taxes. Seriously? Seriously!<\/p>\n<p>For example, a 14-year-old can have an IRA or a Roth IRA and contribute 100% of earned wages up to the maximum contribution. And since the wages to the child are a direct business expense, this reduces your overall taxable income (lower S Corporation income, lower pass-through income, and lower shareholder taxes).<\/p>\n<p>Consider this-<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"46%\"><strong>IRA Scenario<\/strong><\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"43%\"><strong>Roth Scenario<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 37%;\">Junior&#8217;s Earned Income<\/td>\n<td style=\"text-align: center; width: 10%;\">22,000<\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: left; width: 37%;\">Junior&#8217;s Earned Income<\/td>\n<td style=\"text-align: center; width: 10%;\">15,000<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 37%;\">Junior&#8217;s Standard Deduction<\/td>\n<td style=\"text-align: center; width: 10%;\">15,000<\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: left; width: 37%;\">Junior&#8217;s Standard Deduction<\/td>\n<td style=\"text-align: center; width: 10%;\">15,000<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 37%;\">Junior&#8217;s IRA Contribution<\/td>\n<td style=\"text-align: center; width: 10%;\">7,000<\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: left; width: 37%;\">Junior&#8217;s Roth IRA Contribution<\/td>\n<td style=\"text-align: center; width: 10%;\">7,000<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 37%;\">Taxable Income<\/td>\n<td style=\"text-align: center; width: 10%;\">0<\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: left; width: 37%;\">Taxable Income<\/td>\n<td style=\"text-align: center; width: 10%;\">0<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 37%;\">Payroll Taxes @15.3%<\/td>\n<td style=\"text-align: center; width: 10%;\">3,366<\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: left; width: 37%;\">Payroll Taxes @15.3%<\/td>\n<td style=\"text-align: center; width: 10%;\">2,295<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 37%;\"><\/td>\n<td style=\"text-align: center; width: 10%;\"><\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: left; width: 37%;\"><\/td>\n<td style=\"text-align: center; width: 10%;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 37%;\">Mom\/Dad Savings @10%<\/td>\n<td style=\"text-align: center; width: 10%;\">-1,166<\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: left; width: 37%;\">Mom\/Dad Savings @10%<\/td>\n<td style=\"text-align: center; width: 10%;\">-795<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 37%;\">Mom\/Dad Savings @22%<\/td>\n<td style=\"text-align: center; width: 10%;\"><span style=\"color: #0000ff;\"><strong>1,474<\/strong><\/span><\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: left; width: 37%;\">Mom\/Dad Savings @22%<\/td>\n<td style=\"text-align: center; width: 10%;\"><span style=\"color: #0000ff;\"><strong>1,005<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 37%;\">Mom\/Dad Savings @37%<\/td>\n<td style=\"text-align: center; width: 10%;\"><span style=\"color: #0000ff;\"><strong>4,774<\/strong><\/span><\/td>\n<td style=\"width: 6%;\"><\/td>\n<td style=\"text-align: left; width: 37%;\">Mom\/Dad Savings @37%<\/td>\n<td style=\"text-align: center; width: 10%;\"><span style=\"color: #0000ff;\"><strong>3,255<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The standard deduction and IRA limits are for the 2025 tax year.<\/p>\n<p>There are several things at play here. First, Junior must actually work, and this is the biggest bone of contention with the IRS. Consider a $30 an hour job would need 500 hours or about 10 per week to achieve $15,000 in wages. So, get that squared away.<\/p>\n<p>Second, Junior can still have tax-free income although Mom and Dad are claiming him as a dependent on their individual tax return (Form 1040). This generally preserves certain tax credits.<\/p>\n<p>Another issue to consider is support and claiming Junior as a dependent. If Junior is going to college and Mom and Dad are paying him to work at the family business, for Mom and Dad to claim Junior as a dependent they must provide over half of the Junior\u2019s support. This includes the amounts spent to provide food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities.<\/p>\n<p>This creates an interesting conundrum. If Junior makes $30,000 working for the family business, but socks all the money away into savings while Mom and Dad continue to pay over half of the support such as rent, food and education, they can still claim Junior as a dependent.<\/p>\n<p>Yet another caveat to this is education credits. At times Mom and Dad\u2019s income is too high to be eligible for certain education credits. By paying Junior, and having Junior claim the education credit (and he would have to pay for college too, but gifting can assist), the overall household might win.<\/p>\n<p>So, there might be real savings and, in the example above, Junior is saving for retirement.<\/p>\n<p>A Roth IRA contribution is not deductible while an IRA contribution is, which is why the IRA scenario can have a higher salary. There is not a minimum age for an IRA or Roth IRA- you simply need to have earned income to contribute. And Yes, the money is the child\u2019s so when Junior turns 18 and wants to blow it on a new car, it\u2019s gone plus penalty. You can\u2019t fix everyone.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Company-Sponsored_Retirement_Plan\"><\/span>Company-Sponsored Retirement Plan<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A company-sponsored plan could be a SIMPLE, SEP or 401k plan. The usual age for these types of plans is 21, but the plan may be created or adopted to be as low as 14 years of age. Therefore, if you hire your 14-year-old and you also have a 19-year-old working for the business, that 19-year-old suddenly becomes eligible if your company-sponsored plan allows 14-year-olds. There are hours of service thresholds you could implement as well.<\/p>\n<p>But setting up the 401lk plan correctly allows your child to contribute $23,500 (for the 2025 tax year) to a 401k or the maximum limits on SIMPLE\u2019s and SEP\u2019s which can be significant. In turn the business gets an instant deduction, and the kid gets your money, albeit a bit early.<\/p>\n<p>Conceivably, your child could have a $45,500 salary and contribute all kinds of money to his or her 401k plan and IRA. Here is a table-<\/p>\n<table style=\"width: 60%;\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" colspan=\"2\"><strong>IRA and 401k Plan Scenario<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\">Junior&#8217;s Earned Income<\/td>\n<td style=\"text-align: center; width: 25%;\">44,600<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\">Junior&#8217;s Standard Deduction<\/td>\n<td style=\"text-align: center; width: 25%;\">14,600<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\">Junior&#8217;s 401k Contribution<\/td>\n<td style=\"text-align: center; width: 25%;\">23,000<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\">Junior&#8217;s IRA Contribution<\/td>\n<td style=\"text-align: center; width: 25%;\">7,000<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\">Taxable Income<\/td>\n<td style=\"text-align: center; width: 25%;\">0<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\">Payroll Taxes @15.3%<\/td>\n<td style=\"text-align: center; width: 25%;\">6,824<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\"><\/td>\n<td style=\"text-align: center; width: 25%;\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\">Mom\/Dad Savings @10%<\/td>\n<td style=\"text-align: center; width: 25%;\">-2,364<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\">Mom\/Dad Savings @22%<\/td>\n<td style=\"text-align: center; width: 25%;\"><span style=\"color: #0000ff;\"><strong>2,988<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75%; text-align: left;\">Mom\/Dad Savings @37%<\/td>\n<td style=\"text-align: center; width: 25%;\"><span style=\"color: #0000ff;\"><strong>9,678<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The standard deduction, 401k and IRA limits are for the 2025 tax year.<\/p>\n<p>The rule is this- if you are covered by a retirement plan at work (what the IRS calls active participation), and you earn less than $77,000 (for the 2024 tax year) adjusted gross income (which Junior does), you can contribute both to a 401k plan and IRA, and get the IRA deduction.<\/p>\n<p>Here is a link about the various options for small business owners to set up retirement-<\/p>\n<p><a href=\"https:\/\/wcginc.com\/business-services\/self-employed-retirement-plans\/\" target=\"_blank\" rel=\"noopener\">wcginc.com\/401k<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Education_Credits\"><\/span>Education Credits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You can also create some tax due to take advantage of the American Opportunity Tax Credit. Huh? Mom and Dad make too much money, and cannot take advantage of the AOTC education credit. But Junior, with a little bit of tax due on their 1040 tax return from a $30,000 salary (for example), can get all the tax back as a credit plus the refundable portion. There are some things to navigate through such as claiming them as a dependent, the work needed for a $30,000 salary, etc. but it is something to consider.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"IRS_and_State_Concerns\"><\/span>IRS and State Concerns<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You must be mindful of child labor laws, and as far as the IRS is concerned there are some rules too.<\/p>\n<p>First, the child must actually perform work. Some argue that cleaning bathrooms and stuffing envelopes are different since cleaning bathrooms is non-essential to the business operations and therefore not qualifying. The counter argument is that having your child clean bathrooms replaces your third-party janitorial expense. Our advice is to be as legitimate as possible- create a job description, list of expectations, etc. Ensure that the work they do has a business connection.<\/p>\n<p>Also, the pay must be consistent, and the pay must be reasonable relative to what you pay others for similar work. Basically, you need to treat them like any other employee to avoid troubles. Lastly, you need to keep detailed records such as timecards and job descriptions (of course you do!). This must be perceived as an arms-length relationship.<\/p>\n<p>Many states have labor laws that dictate the age your child can work, even for Mom and Dad. For example, Indiana allows a 14-year-old to work with a permit. Minors under 14 may work as newspaper carrier, golf caddy, domestic service worker in a private residence (sounds like chores) or farm laborer. Minors under 12 in Indiana can only be farm laborers. Again, in Indiana, there is no need for a work permit if the work is outside school hours of 7:30AM to 3:30PM. We bring these examples to light so you understand to check your state or local laws about hiring your kids.<\/p>\n<p><strong>WCG CPAs &amp; Advisors<\/strong> will not process payroll for any child under the age of 12 unless there are special circumstances. For example, we have a client who has twin 9-year-old daughters who do quite well recording Tik Tok videos. We continue to be amazed at how people make money, and what the public is willing to pay for the efforts.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mom_and_Dad_your_parents\"><\/span>Mom and Dad (your parents)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The concepts above could also be applied to supporting your Mom and Dad. Aside from possibly making them minority owners and providing them with shareholder distributions, there could be some scenarios where a salary could make sense as well. Other sources of income and tax brackets of course all need to be considered.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=&#8221;25px&#8221;][vc_column_text]<style data-type=\"vc_shortcodes-custom-css\">#wd-6915e3dd2a9b5 .info-box-title{line-height:40px;font-size:30px;color:#473d3c;}#wd-6915e3dd2a9b5 .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}#wd-6915e437409dd .info-box-title{line-height:40px;font-size:30px;color:#473d3c;}#wd-6915e437409dd .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}#wd-68460c16bff16 .info-box-title{line-height:60px;font-size:50px;color:#473d3c;}#wd-68460c16bff16 .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}#wd-687b937e0887f .info-box-title{line-height:26px;font-size:16px;color:#473d3c;}#wd-687b937e0887f .info-box-inner{line-height:22px;font-size:12px;color:#473d3c;}#wd-687b9384e0d51 .info-box-title{line-height:26px;font-size:16px;color:#473d3c;}#wd-687b9384e0d51 .info-box-inner{line-height:22px;font-size:12px;color:#473d3c;}#wd-687b938a8f4b3 .info-box-title{line-height:26px;font-size:16px;color:#473d3c;}#wd-687b938a8f4b3 .info-box-inner{line-height:22px;font-size:12px;color:#473d3c;}#wd-68bcf7fc8516a .info-box-title{line-height:40px;font-size:30px;color:#473d3c;}#wd-68bcf7fc8516a .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}#wd-68bcfccd83cf7 .info-box-title{line-height:46px;font-size:36px;color:#473d3c;}#wd-68bcfccd83cf7 .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}@media (max-width: 1199px) {#wd-6915e3dd2a9b5 .info-box-title{line-height:34px;font-size:24px;}#wd-6915e3dd2a9b5 .info-box-inner{line-height:24px;font-size:14px;}#wd-6915e437409dd .info-box-title{line-height:34px;font-size:24px;}#wd-6915e437409dd .info-box-inner{line-height:24px;font-size:14px;}#wd-68460c16bff16 .info-box-title{line-height:50px;font-size:40px;}#wd-687b937e0887f .info-box-title{line-height:25px;font-size:15px;}#wd-687b9384e0d51 .info-box-title{line-height:25px;font-size:15px;}#wd-687b938a8f4b3 .info-box-title{line-height:25px;font-size:15px;}#wd-68bcf7fc8516a .info-box-title{line-height:34px;font-size:24px;}#wd-68bcf7fc8516a .info-box-inner{line-height:24px;font-size:14px;}#wd-68bcfccd83cf7 .info-box-title{line-height:36px;font-size:26px;}#wd-68bcfccd83cf7 .info-box-inner{line-height:24px;font-size:14px;}}@media (max-width: 767px) {#wd-6915e3dd2a9b5 .info-box-title{line-height:28px;font-size:18px;}#wd-6915e3dd2a9b5 .info-box-inner{line-height:24px;font-size:14px;}#wd-6915e437409dd .info-box-title{line-height:28px;font-size:18px;}#wd-6915e437409dd .info-box-inner{line-height:24px;font-size:14px;}#wd-68460c16bff16 .info-box-title{line-height:40px;font-size:30px;}#wd-687b937e0887f .info-box-title{line-height:24px;font-size:14px;}#wd-687b9384e0d51 .info-box-title{line-height:24px;font-size:14px;}#wd-687b938a8f4b3 .info-box-title{line-height:24px;font-size:14px;}#wd-68bcf7fc8516a .info-box-title{line-height:28px;font-size:18px;}#wd-68bcf7fc8516a .info-box-inner{line-height:24px;font-size:14px;}#wd-68bcfccd83cf7 .info-box-title{line-height:28px;font-size:18px;}#wd-68bcfccd83cf7 .info-box-inner{line-height:24px;font-size:14px;}}<\/style><div class=\"wpb-content-wrapper\">[vc_row][vc_column]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-6915e3dd2a9b5\" class=\" wd-rs-6915e3dd2a9b5 wd-info-box wd-wpb text-center box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title kb \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p style=\"text-align: center;\"><em>Jason Watson, CPA, is a Partner and the CEO of <strong>WCG CPAs &amp; Advisors<\/strong>, a boutique yet progressive tax, accounting and business consultation firm located in Colorado serving small business owners and taxpayers worldwide.<\/em><\/p>\n<div style=\"display: flex; justify-content: center;\"><a href=\"https:\/\/www.linkedin.com\/in\/jason-watson-cpa\/\"><img decoding=\"async\" class=\"alignnone wp-image-17327 entered lazyloaded\" style=\"height: 35px!important; width: auto!important;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/linkedin-150x150-1.png.webp\" alt=\"Jason Watson CPA LinkedIn\" \/><\/a>\u00a0\u00a0\u00a0\u00a0\u00a0<a href=\"mailto:jason@wcginc.com\"><img decoding=\"async\" class=\"alignnone size-thumbnail wp-image-17334 entered lazyloaded\" style=\"height: 35px!important; width: auto!important;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/mail-150x150-1.png.webp\" alt=\"Jason Watson CPA Email\" \/><\/a><\/div>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-6915e437409dd\" class=\" wd-rs-6915e437409dd wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title img-right kb \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Taxpayers_Comprehensive_Guide_to_LLCs_and_S_Corps_2025_Edition\"><\/span>Taxpayer\u2019s Comprehensive Guide to LLCs and S Corps 2025 Edition<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p><img decoding=\"async\" class=\"size-full wp-image-31529 alignnone\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/LLC-S-Corp-Web-and-Social-GFX_275-250x300-1.webp\" alt=\"Taxpayer\u2019s Comprehensive Guide to LLCs and S Corps 2025 Edition\" width=\"250\" height=\"300\" \/>This KB article is an excerpt from our 420+ page book (some picture pages, but no scatch and sniff) which is available in paperback from\u00a0<a href=\"https:\/\/www.wcginc.com\/amazon\" target=\"_blank\" rel=\"noopener\">Amazon<\/a>, as an eBook for\u00a0<a href=\"https:\/\/www.wcginc.com\/kindle\" target=\"_blank\" rel=\"noopener\">Kindle<\/a>\u00a0and as a\u00a0<a href=\"https:\/\/www.wcginc.com\/pdf\" target=\"_blank\" rel=\"noopener\">PDF<\/a>\u00a0from ClickBank. We used to publish with iTunes and Nook, but keeping up with two different formats was brutal. You can cruise through these KB articles online, click on the fancy buttons below or\u00a0<a href=\"https:\/\/wcginc.com\/business-services\/book\/\" target=\"_blank\" rel=\"noopener\">visit our webpage<\/a>\u00a0which provides more information.<\/p>\n<table class=\"purchase-table\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><a href=\"\/amazon\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-6657 aligncenter\" style=\"float: none;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/amazon-imageresized.png.webp\" alt=\"LLCs and S Corp Book Amazon\" width=\"50\" height=\"50\" \/><\/a><\/td>\n<td style=\"text-align: center;\"><a href=\"\/kindle\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-6658\" style=\"float: none;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/kindle-imageresized.png.webp\" alt=\"LLCs and S Corp Book Kindle\" width=\"50\" height=\"50\" \/><\/a><\/td>\n<td style=\"text-align: center;\"><a href=\"\/pdf\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-6659 aligncenter\" style=\"float: none;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/PDFresized.png.webp\" alt=\"LLCs and S Corp Book PDF\" width=\"50\" height=\"50\" \/><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>$49.95<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>$39.95<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>$29.95<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column][\/vc_row][vc_row equal_height=\"yes\" content_placement=\"top\" el_id=\"consultation-secc\" woodmart_css_id=\"6756f7d427735\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzU2ZjdkNDI3NzM1Iiwic2hvcnRjb2RlIjoidmNfcm93IiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\" el_class=\"kb-consult\"][vc_column]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68460c2ba6365\" class=\" wd-rs-68460c2ba6365 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title kb-fix \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title box-title-style-default wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Talk_to_a_Small_Business_CPA_About_Your_Situation\"><\/span>Talk to a Small Business CPA About Your Situation<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Please use the form below to tell us a little about yourself, and what you have going on with your small business or 1099 contractor gig. <strong>WCG CPAs &amp; Advisors<\/strong> are small business CPAs, tax professionals and consultants, and we look forward to talking to you!<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner el_id=\"consultation-inner\" woodmart_css_id=\"66fd6caf92fc0\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NmZkNmNhZjkyZmMwIiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\"][vc_column_inner][vc_raw_js el_class=\"defaultBot\"]JTNDc2NyaXB0JTIwdHlwZSUzRCUyMnRleHQlMkZqYXZhc2NyaXB0JTIyJTIwc3JjJTNEJTIyaHR0cHMlM0ElMkYlMkZ3Y2dpbmMuam90Zm9ybS5jb20lMkZqc2Zvcm0lMkYyNTE2NjQ4Nzk0MTQ5NzMlMjIlM0UlM0MlMkZzY3JpcHQlM0U=[\/vc_raw_js][\/vc_column_inner][\/vc_row_inner]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68460c16bff16\" class=\" wd-rs-68460c16bff16 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title defaultBot \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>The tax advisors, business consultants and rental property experts at <strong>WCG CPAs &amp; Advisors<\/strong> are not salespeople; we are not putting lipstick on a pig expecting you to love it. Our job remains being professionally detached, giving you information and letting you decide within our ethical guidelines and your risk profiles.<\/p>\n<p>We see far too many crazy schemes and half-baked ideas from attorneys and wealth managers. In some cases, they are good ideas. In most cases, all the entities, layering and mixed ownership is only the illusion of precision. As Chris Rock says, just because you can drive your car with your feet doesn\u2019t make it a good idea. In other words, let\u2019s not automatically convert \u201cyou can\u201d into \u201cyou must.\u201d<\/p>\n<p><strong>Let\u2019s chat so you can be smart about it.<\/strong><\/p>\n<p>We typically schedule a 20-minute complimentary quick chat with one of our Partners or our amazing Senior Tax Professionals to determine if we are a good fit for each other, and how an engagement with our team looks. Tax returns only? Business advisory? Tax strategy and planning? Rental property support?<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner equal_height=\"yes\" el_class=\"boxes--pack\" woodmart_css_id=\"673b5f334f247\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzNiNWYzMzRmMjQ3Iiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\"][vc_column_inner width=\"1\/3\"]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-687b937e0887f\" class=\" wd-rs-687b937e0887f wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none business-boxes \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Text-WCG-Offices-1.jpg\" class=\"attachment-full size-full\" alt=\"Text WCG Offices\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title wd-font-weight-600 box-title-style-default font-primary wd-fontsize-m\">Text WCG Offices<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Need to get in touch through a quick text?\u00a0 We\u2019ll respond back within a day and get going!<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"sms:+17193452100?&amp;body=Hey%20WCG!%20Please%20call%20me%20to%20discuss%20your%20CPA%20services\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=\"1\/3\"]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-687b9384e0d51\" class=\" wd-rs-687b9384e0d51 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none business-boxes \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Chat-Our-Amazing-Team-1.jpg\" class=\"attachment-full size-full\" alt=\"Chat our amazing team\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title wd-font-weight-600 box-title-style-default font-primary wd-fontsize-m\">Call Our Amazing Team<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p class=\" \">If you need to speak to a tax professional now, give us a call and we'll get you connected.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"tel:719-387-9800\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=\"1\/3\"]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-687b938a8f4b3\" class=\" wd-rs-687b938a8f4b3 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none business-boxes nav-button-chat \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Chat-With-a-Tax-Pro-2.jpg\" class=\"attachment-full size-full\" alt=\"Chat with a tax pro\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title wd-font-weight-600 box-title-style-default font-primary wd-fontsize-m\">Chat With a Tax Pro<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Taxes can be tricky. Chat with a WCG human now and get questions answered.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row equal_height=\"yes\" content_placement=\"top\" woodmart_css_id=\"684abef7ecaa9\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2ODRhYmVmN2VjYWE5Iiwic2hvcnRjb2RlIjoidmNfcm93IiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\" el_class=\"kb-consult\"][vc_column]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68bcf7fc8516a\" class=\" wd-rs-68bcf7fc8516a wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-600 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Schedule_Discovery_Meeting_Now\"><\/span>Schedule Discovery Meeting Now<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner content_placement=\"middle\" el_class=\"client-review-secs box--card\" woodmart_css_id=\"672e712482714\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzJlNzEyNDgyNzE0Iiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\"][vc_column_inner width=\"1\/3\" woodmart_css_id=\"671780b35b49a\" parallax_scroll=\"no\" woodmart_sticky_column=\"false\" wd_collapsible_content_switcher=\"no\" wd_column_role_offcanvas_desktop=\"no\" wd_column_role_offcanvas_tablet=\"no\" wd_column_role_offcanvas_mobile=\"no\" wd_column_role_content_desktop=\"no\" wd_column_role_content_tablet=\"no\" wd_column_role_content_mobile=\"no\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_box_shadow=\"no\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzE3ODBiMzViNDlhIiwic2hvcnRjb2RlIjoidmNfY29sdW1uX2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" wd_z_index=\"no\"]\t\t<div id=\"wd-68874e76cd7bc\" class=\"wd-image wd-wpb wd-rs-68874e76cd7bc text-left \">\n\t\t\t\n\t\t\t<img decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/265518_2057667071_tax_consultation_300-1.webp\" class=\"attachment-full size-full\" alt=\"Request a Meeting with WCG Inc\" \/>\n\t\t\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=\"2\/3\" woodmart_css_id=\"671780c0415fb\" parallax_scroll=\"no\" woodmart_sticky_column=\"false\" wd_collapsible_content_switcher=\"no\" wd_column_role_offcanvas_desktop=\"no\" wd_column_role_offcanvas_tablet=\"no\" wd_column_role_offcanvas_mobile=\"no\" wd_column_role_content_desktop=\"no\" wd_column_role_content_tablet=\"no\" wd_column_role_content_mobile=\"no\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_box_shadow=\"no\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzE3ODBjMDQxNWZiIiwic2hvcnRjb2RlIjoidmNfY29sdW1uX2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" wd_z_index=\"no\"]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68bcfccd83cf7\" class=\" wd-rs-68bcfccd83cf7 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none with-btn box-btn-static \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Ready to schedule now and talk about S Corp and reasonable salary and all that gibberish? Let's do it! Here is a link to a Discovery Meeting with one of our Partners or Senior Tax Professionals to understand your tax footprint and objectives, and how <strong>WCG CPAs &amp; Advisors<\/strong> might help.<\/p>\n<\/div>\n\n\t\t\t\t\t\t<div class=\"info-btn-wrapper\"><div id=\"wd-6a31c1701d1ce\" class=\"  wd-button-wrapper text-left\"><a href=\"https:\/\/calendly.com\/wcg-cpas-advisors\/discovery-meeting-instant\" title=\"\" target=\"_blank\" class=\"btn btn-style-default btn-shape-rectangle btn-size-default\">Schedule Meeting<\/a><\/div><\/div>\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/div>[\/vc_column_text]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68b5c04a3ff4d\" class=\" wd-rs-68b5c04a3ff4d wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title faqs-wrap \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title box-title-style-default wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_pay_my_child_without_them_owing_income_tax\"><\/span>Can I pay my child without them owing income tax?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, wages up to the standard deduction ($15,000 in 2025) are tax-free for the child.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Does_my_business_entity_affect_payroll_taxes_for_kids\"><\/span>Does my business entity affect payroll taxes for kids?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, LLCs avoid Social Security and Medicare taxes for children under 18; S Corps and C Corps do not.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_kids_contribute_to_retirement_accounts\"><\/span>Can kids contribute to retirement accounts?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, they can put earned wages into an IRA, Roth IRA, or even a 401(k) if the plan allows.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_paying_my_child_instead_of_gifting_money\"><\/span>What are the benefits of paying my child instead of gifting money?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Paying wages gives your business a deduction, while direct gifts do not.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_proof_does_the_IRS_require\"><\/span>What proof does the IRS require?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Actual work performed, reasonable pay rates, timecards, and job descriptions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_paying_my_child_help_with_college_tax_credits\"><\/span>Can paying my child help with college tax credits?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In some cases, yes \u2014 children may qualify for credits parents can\u2019t use due to income limits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_there_a_minimum_age_to_hire_my_child\"><\/span>Is there a minimum age to hire my child?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Federal law doesn\u2019t set one for family businesses, but states may have their own restrictions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_these_strategies_also_work_for_my_parents\"><\/span>Can these strategies also work for my parents?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, paying parents a salary may provide tax benefits in some situations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Whats_the_risk_of_not_following_the_rules\"><\/span>What\u2019s the risk of not following the rules?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Disallowed deductions, IRS penalties, and state labor law violations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_wages_to_my_child_affect_claiming_them_as_a_dependent\"><\/span>Do wages to my child affect claiming them as a dependent?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Not necessarily \u2014 parents can still claim dependents if they provide over half of the child\u2019s support.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Should you pay Junior to vacuum? Perhaps. While most parents can\u2019t get their kids to clean a counter or put away dishes, perhaps putting kids to work at the office is a good option[&#8230;]<\/p>\n","protected":false},"author":6,"featured_media":4238,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"epkb_post_type_1_category":[73],"epkb_post_type_1_tag":[],"class_list":["post-13924","epkb_post_type_1","type-epkb_post_type_1","status-publish","has-post-thumbnail","hentry","epkb_post_type_1_category-chap-11-tax-deductions-fringe-benefits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Putting Your Kids on Payroll: What You Need to Know - WCG CPAs &amp; Advisors<\/title>\n<meta name=\"description\" content=\"While most parents can\u2019t get their kids to clean a counter or put away dishes, perhaps putting your kids on payroll to work at the office is a good option.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Putting Your Kids on the Payroll\" \/>\n<meta property=\"og:description\" content=\"While most parents can\u2019t get their kids to clean a counter or put away dishes, perhaps putting your kids on payroll to work at the office is a good option.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/wcginc.com\/kb\/putting-your-kids-on-the-payroll\/\" \/>\n<meta property=\"og:site_name\" content=\"WCG CPAs &amp; 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