How to Legally and Ethically Employ Your Kids in Your Business (While Enjoying The Tax Benefits) With a CPA

In a recent video interview, I had the pleasure of speaking with  CPA and profit strategist Jamie Trull to discuss the legal and ethical considerations of hiring and paying our children in our businesses as owners.

This interview covers the various benefits of hiring your children (even as babies and toddlers!), age-appropriate tasks they can help with (like sweeping, organizing, light graphic design, modeling for social media images, etc!), documentation requirements, state and federal laws, and potential downsides. 

If you're interested in learning more about this topic in detail, check out Jamie's FREE guide titled "7 Strategies to Maximize Tax Savings by Hiring Your Kids"!

Alright, let's dive into the key points from this insightful discussion-- or click the video below to watch the full conversation on YouTube!

The Many Benefits of Hiring Children in Businesses:

Jamie explains that hiring children can provide tax advantages and an opportunity to teach them about finances and work ethics. It also allows them to gain real-world experience and develop valuable skills. By involving children in the business, parents can pass on their knowledge and values, setting them up for future success.

Age-Appropriate Tasks:

Children can be assigned age-appropriate tasks such as administrative work, cleaning, marketing, and advertising. These tasks help them learn responsibility and contribute to the business's operations. It is important to consider the child's age, abilities, and interests when assigning tasks to ensure a positive and educational experience.

Documentation and Compliance:

Jamie emphasizes the importance of documenting all payments made to children and following both state and federal laws. This includes keeping track of hours worked, wages paid, and any training or courses related to their work. It is crucial to be aware of state-specific laws and restrictions on dangerous jobs for children to ensure compliance and protect their well-being.

Payment for Training and Courses:

Children can be paid for training and taking courses related to their work. This provides them with additional learning opportunities and helps them develop their skills further. By investing in their education and growth, parents can set their children up for long-term success in their chosen field.

Downsides and Watch-Outs:

Jamie mentions that there are potential downsides to hiring children, such as state-specific laws and restrictions on dangerous jobs. It is essential for business owners to navigate these complexities and ensure compliance with the law. By staying informed and seeking professional advice, parents can mitigate any risks and create a safe and beneficial working environment for their children.

Hiring Your Kids Toolkit:

To assist business owners in navigating the legal and ethical aspects of hiring children, Jamie introduces her Hiring Your Kids toolkit. This comprehensive resource provides step-by-step guidance, trackers, contracts, and video lessons. It is designed to help parents maximize tax savings while ensuring compliance with state and federal laws. The toolkit is a valuable tool for those looking to involve their children in their business operations.

Hiring and paying children in businesses can have numerous benefits, including tax advantages and the opportunity to teach them about finances and work ethics.

However, it is crucial to follow state and federal laws, document all payments, and be aware of any restrictions on dangerous jobs for children. Jamie Troll's Hiring Your Kids toolkit provides step-by-step guidance and resources to assist business owners in navigating these complexities.

To learn more, check out Jamie's YouTube channel and the free guide titled "Seven Strategies to Maximize Tax Savings by Hiring Your Kids."

Remember to follow Jamie on social media to stay updated with her expertise in this area!