Cpa Kaival PatelDirector, Profuture Tax Academy · Helping Small Business, CPA & Bookkeepers to Grow

Hiring your kids is a great strategy. 👨‍👩‍👧‍👦1. You get a tax deduction.

Name: Hiring your kids is a great strategy. 👨👩👧👦1. You get a tax deduction.
Uploaded: 2026-02-04T22:50:18+00:00
Duration: 37 s
Channel: Cpa Kaival Patel
Description: In this concise advisory video, the speaker outlines how business owners can legally employ their children. Two essential rules are emphasized: (1) the…

4 Feb 2026 · 1 min

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In this concise advisory video, the speaker outlines how business owners can legally employ their children. Two essential rules are emphasized: (1) the child must actually perform work—no paying toddlers for consulting—and (2) compensation must be reasonable, reflecting the value of the tasks performed. The speaker then highlights three key advantages: a tax deduction for the business, the child’s earnings remaining untaxed if under the $15,000 annual threshold, and the benefit of keeping money within the family while teaching the child a strong work ethic. The segment concludes with a compliance reminder to maintain proper timesheets and records for the child’s employment.

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Can you pay your kids to work for you? Here are the two rules. Rule 1: They should be actually working. So don't pay your 2-year-old as a consultant. Rule number 2: The pay should be reasonable. So you cannot pay your son $50 per hour just to clean the office and do the admin work. No. Hiring your kids for a business is a great strategy. Number 1: You get the tax deduction, and they also don't pay taxes as long as their annual income is below $15,000. Second, the money stays within the family. And third, your kids will learn actual work ethic. Just make sure you maintain a timesheet and records.