The Kids Just Got Raise in Your PYOP Studio

12 Jan 2022 · 2 min

Watch on YouTube

1:53

Short YouTube clip (uploaded Jan 12, 2022) featuring Donna Genie explaining that business owners who put their children on payroll could pay them up to $12,550 in 2021 tax-free (if that's their only source of income) and that the 2022 threshold rises by $400 to $12,950. She also recommends having children contribute earnings into an IRA as a long-term savings/education strategy. Donna Bordeaux closes with promotion of PYOP Accounting, social links, and contact email.

Questions this video answers

$12,550

Increase: $400; New amount: $12,950 (for 2022)

January 12, 2022

me@donnapyopaccounting.com

Chapters

The kids just got a raise. If you have your children on your payroll of your business and you're utilizing the full deduction, you could pay them $12,550 in 2021 and they have no tax liability. Assuming that's their only sour income, guess what? In 2022 they get a $400 raise. That bump will go up to $12,950. So please up your kids, pay for next year and take advantage of the tax deduction. Also, while you're at it, think about if they can set aside that money into an ira. Did you know that if your child sets aside money into that ira, they will be so far ahead of where you and I were at their age and when they graduate college, they have a good start. It's also a good educational factor to put aside the money and let them see what saving money does and help them start their savings plan today. So if you have questions about setting your kids up on payroll, make sure you let us know. We'd be happy to talk to you about that strategy as well as others that we share with our VIP clients. Start your relationship with us today.
I'm Donna Bordeaux with pyopaccounting.com Please follow us on Facebook and Instagram. Make sure you check out our blog and our website from the link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. To contact me, email me@donnapyopaccounting.com.