…also make your tax planning easier, as you can get an income tax deduction.

If you’re a sole proprietor or a husband and wife partnership (in other words, not a corporation) you can create an income tax deduction and you will not have to match (employer’s share) the Social Security or Medicare tax normally due for an employee.

You will be required to withhold the Social Security and Medicare tax from your Child’s pay.

Don’t think you just found a wind-fall, the work performed and wage paid needs to match your Child’s ability and be consistent with a comparable employee.

I.e. your 14 or 15 year old would not be allowed on a construction site.

You also MUST review all applicable state child labor laws.

Planned correctly this can add up to a nice tax savings for you and begin to teach your children cash management skills.

If you have any questions, comments, or concerns about Tax Planning, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

Everything I discuss is also available in eBook form on my Web Site at: www.Makara-Assoc.com.

…you need to know:

1. Cash Flow Management, Financing Options & Banking Relationships
2. Tax Planning IS A Year Round Activity
3. Human Resources and Payroll Issues
4. Small Business Accounting and Information Technology (IT)
5. Advertising vs. Web Marketing
6. Entertainment and Meals Deductions
7. Travel and Uniform Reimbursement Policies

If you have any questions about the information I’ve gone over, please feel free to contact me, or give me a call at (239) 384-9688.

- Mark

———

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

This is part 3 in my 7 part series “7 Things Every Small Business Owner Needs To Know”.  You can download this entire series in my eBook on my web site – www.Makara-Assoc.com.

For example:

Poor documentation penalties can cost $1,000 per employee, and $10,000 for knowingly hiring an illegal immigrant.

Penalties for failure to file employment forms and/or deposit payroll taxes withheld range from 2 – 15% of the tax, plus interest.

Make sure your company is using the most up to date forms (i.e. W-4’s and I-9’s), keep employee files clean and updated for any and all changes.

A few tips when it comes to employee files:

1. Don’t make notes on applications and resumes, circling the date of college graduation could be evidence of age bias in the future.
2. Don’t keep I-9’s in employee files, keep these and supporting documentation in a separate file again to protect against discrimination claims.
3. Don’t use social security numbers as employee ID’s.

Create a hiring checklist, as missed or uncompleted documents can cost you.

If mistakes are made, payroll processing can be a time consuming and expensive.

Some of the more costly mistakes made in payroll are:

• not paying overtime to nonexempt employees and
• not timely depositing withheld taxes (Trust Fund money).

The rules for payroll are complex, if you or someone on your staff is not fully aware of these rules, hire a payroll service.  It will only take one or two mistakes to pay for the service, not counting the time it will take to correct the error.

If you have any questions, please give me a call at (239) 384-9688 or visit my web site at: www.Makara-Assoc.com.

- Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this eBook is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.