Latest / Earn Your Leisure / Triple Tax Benefits of Hiring Your Children Explained

Transcript

Triple Tax Benefits of Hiring Your Children Explained · Earn Your Leisure

• 0:01
  Speaker 1: Earners. What's up.
• 0:02
  Speaker 2: You ever walk into a small business and everything just
• 0:04
  Speaker 2: works like The checkout is fast, the receipts are digital,
• 0:08
  Speaker 2: tipping is a breeze, and you're out the door before
• 0:11
  Speaker 2: the line even builds. Odds are they're using Square. We
• 0:15
  Speaker 2: love supporting businesses that run on Square because it just
• 0:18
  Speaker 2: feels seamless. Whether it's a local coffee shop, a vendor
• 0:21
  Speaker 2: at a pop up market, or even one of our
• 0:23
  Speaker 2: merch partners, Square makes it easy for them to take payments,
• 0:27
  Speaker 2: manage inventory, and run their business with confidence, all from
• 0:31
  Speaker 2: one simple system. If you're a business owner or even
• 0:35
  Speaker 2: just thinking about launching something soon, Square is hands down
• 0:38
  Speaker 2: one of the best tools out there to help you start, run,
• 0:41
  Speaker 2: and grow. It's not just about payments, it's about giving
• 0:45
  Speaker 2: you time back so you can focus on what matters
• 0:47
  Speaker 2: most Ready. To see how Square can transform your business,
• 0:51
  Speaker 2: visit Square dot com backslash go backslash eyl to learn
• 0:56
  Speaker 2: more that Square dot com backslash, go backslash eyl. Don't wait,
• 1:01
  Speaker 2: don't hesitate. Let's Square handle the back end so you
• 1:04
  Speaker 2: can keep pushing your vision forward. This episode is brought
• 1:10
  Speaker 2: to you by P and C Bank, a lot of
• 1:12
  Speaker 2: people think podcasts about work are boring, and sure, they
• 1:16
  Speaker 2: definitely can be, but understanding of professional's routine shows us
• 1:20
  Speaker 2: how they achieve their success little by little, day after day.
• 1:24
  Speaker 2: It's like banking with P and C Bank. It might
• 1:27
  Speaker 2: seem boring to save, plan and make calculated decisions with
• 1:30
  Speaker 2: your bank, but keeping your money boring is what helps
• 1:33
  Speaker 2: you live or more happily fulfilled life. P and C
• 1:36
  Speaker 2: Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since
• 1:41
  Speaker 2: eighteen sixty five is a service mark of the PNC
• 1:44
  Speaker 2: Financial Service Group, Inc. P and C Bank National Association
• 1:48
  Speaker 2: Member FDIC.
• 1:51
  Speaker 3: All right, let's talk about hiring your children. I know
• 1:54
  Speaker 3: that we've talked about this a lot in terms of
• 1:57
  Speaker 3: like hiring your children, or you guys may see like
• 2:00
  Speaker 3: hiring your children and what that all means, and you
• 2:03
  Speaker 3: know how to really maximize and I love the concept
• 2:07
  Speaker 3: of hiring your children, but I want to allow you, guys,
• 2:10
  Speaker 3: and I want to talk about taking it a step
• 2:12
  Speaker 3: further and really investing in your child's future and making
• 2:15
  Speaker 3: it like a triple tax deduction. So let's talk about
• 2:18
  Speaker 3: hiring your children. Right, So, hiring your children in the
• 2:21
  Speaker 3: year twenty twenty four, you can pay them up to
• 2:23
  Speaker 3: fourteen six hundred dollars. Okay. What you cannot do is
• 2:28
  Speaker 3: you cannot contribute take that money and contribute it towards
• 2:31
  Speaker 3: food and shelter. So you cannot have the work and
• 2:33
  Speaker 3: then say you owe me rent and pay for your
• 2:37
  Speaker 3: own food. You cannot do that, okay. But what you
• 2:40
  Speaker 3: can do with the money is you can pay for
• 2:42
  Speaker 3: extracurricular activities. It's their money. But what you should be
• 2:47
  Speaker 3: considering and what you should be thinking about, is taking
• 2:49
  Speaker 3: it and investing it into a roth IRA. So if
• 2:52
  Speaker 3: you take that money and you invest it into a
• 2:54
  Speaker 3: rock ira, here's how you're able to get a triple
• 2:56
  Speaker 3: tax deduction. One, it's a tax deduction from your business.
• 3:01
  Speaker 3: Then when your child receives the fourteen thousand, six hundred dollars,
• 3:04
  Speaker 3: it is not a tax. It's not taxable. Right, it's
• 3:08
  Speaker 3: not taxable because it's under the standard deduction amount. And
• 3:12
  Speaker 3: then what happens when you invest in the rough ira,
• 3:14
  Speaker 3: it is going to be able to take advantage and
• 3:17
  Speaker 3: take into account compound interest. Right, So now you're building
• 3:21
  Speaker 3: a retirement account and you're able to do that and
• 3:24
  Speaker 3: when it's time to get the money out of that account,
• 3:26
  Speaker 3: it's going to be tax free. So that's why I
• 3:29
  Speaker 3: love the conversation about paying your children, because now it's like,
• 3:32
  Speaker 3: all right, now, let's think about paying your children and
• 3:35
  Speaker 3: taking it a step further versus just saying, okay, it's
• 3:38
  Speaker 3: just a tax deduction. No, let's let's get a triple
• 3:41
  Speaker 3: tax deduction out of this, right, So I think that
• 3:44
  Speaker 3: that I love.
• 3:45
  Speaker 1: Let's let's put a plan.
• 3:46
  Speaker 4: I know you're going to go through like an example
• 3:48
  Speaker 4: for that, but so for parents, like you know, if
• 3:53
  Speaker 4: you have a business, you can pay fourteen thousand, six hundred,
• 3:57
  Speaker 4: fourteen six hundred to year child.
• 3:59
  Speaker 1: So to better fit with that, like you said.
• 4:01
  Speaker 4: Is that if you're going to give your child money anyway,
• 4:04
  Speaker 4: then you might as well give them money and have
• 4:06
  Speaker 4: them as an employee. You don't have to go through
• 4:09
  Speaker 4: all of the like, have them on like officially on
• 4:12
  Speaker 4: a payroll, right, and it's a tax deduction to you
• 4:16
  Speaker 4: as opposed to you just giving them an allowance.
• 4:18
  Speaker 1: Now you don't you don't benefit from that actually be done.
• 4:21
  Speaker 3: Through an LLC, because I get that a lot, and
• 4:23
  Speaker 3: I get that question a lot that should be done
• 4:25
  Speaker 3: through an LLC, not ANX corporation, because if you have
• 4:28
  Speaker 3: ANX corporation, you have to put them on payroll. Right,
• 4:31
  Speaker 3: that has to be done through an LLC.
• 4:33
  Speaker 4: So it's tax reduction to the business, you save money,
• 4:37
  Speaker 4: and then it's tax free income for them. Now they
• 4:40
  Speaker 4: do have to actually be able to perform a job, right, absolutely,
• 4:44
  Speaker 4: that's obvious. Yeah, so, but there is also there's no
• 4:49
  Speaker 4: age requirement, right, it just has to make sense, right, So.
• 4:53
  Speaker 3: There isn't an age requirement. But yeah, like you said,
• 4:56
  Speaker 3: it has to make sense. I typically tell people like
• 4:58
  Speaker 3: try to stay between like seven in seventeen. But if
• 5:02
  Speaker 3: you have a child that's younger and let's say they
• 5:04
  Speaker 3: are able, Let's say, listen, these kids know how to
• 5:06
  Speaker 3: take photos. Now, they know how to work phones, computers,
• 5:10
  Speaker 3: they know. So if you could hire them and have
• 5:12
  Speaker 3: them help you with that, that's great. If they could
• 5:14
  Speaker 3: be a model.
• 5:15
  Speaker 1: But I thought I was going to say a model.
• 5:16
  Speaker 1: If you have a kid, may could be a model.
• 5:18
  Speaker 4: You have a kid that's younger that that's a model,
• 5:20
  Speaker 4: and you could pay them for models and services, because
• 5:22
  Speaker 4: you know what you gotta because there's always there's always
• 5:25
  Speaker 4: somebody that's going to try to figure out how something
• 5:27
  Speaker 4: doesn't work, and.
• 5:28
  Speaker 1: Those are usually people that have never done anything.
• 5:31
  Speaker 4: So it's like, well, you know, technically, you can't have
• 5:34
  Speaker 4: a kid working if they're not working.
• 5:36
  Speaker 1: That's obvious. That's obvious.
• 5:39
  Speaker 4: But it's like you're trying to find ways around to
• 5:41
  Speaker 4: make it not work when it's a workable model, right,
• 5:44
  Speaker 4: Like if you have a child eleven, twelve, thirteen, they're
• 5:48
  Speaker 4: old enough to perform tasks, they can post on social media,
• 5:53
  Speaker 4: they can come with you, they can be an assistant,
• 5:55
  Speaker 4: they can do a variety of different things. Right, it's
• 5:57
  Speaker 4: like you're trying to talk yourself out of this. How
• 5:59
  Speaker 4: this doesn't make sense. It's not difficult to work. That's
• 6:02
  Speaker 4: not a difficult thing to do, and there's a variety
• 6:04
  Speaker 4: of different job that you can do. Now for one year,
• 6:07
  Speaker 4: ROLD is going to be difficult obviously to have them
• 6:09
  Speaker 4: as a computer programmer, that's not something that is beneficial.
• 6:12
  Speaker 4: But like I said, I mean you could pay somebody
• 6:14
  Speaker 4: to be a model at any age really, and the
• 6:17
  Speaker 4: benefit with that as just a regular because you could
• 6:19
  Speaker 4: put money into a ROLD file rate for a regular kid.
• 6:21
  Speaker 4: But that's not if you don't have a business, but
• 6:24
  Speaker 4: they have to actually work a job that's hiring them,
• 6:28
  Speaker 4: and they have to be a working age. So you
• 6:32
  Speaker 4: have to have working papers to work a job like
• 6:34
  Speaker 4: thirteen fourteen something like that, depending on I guess what,
• 6:36
  Speaker 4: depending on what state you are. But you can hire
• 6:39
  Speaker 4: your child at a younger age than that, right, and
• 6:43
  Speaker 4: it's more flexible. They don't have to go to CBS
• 6:46
  Speaker 4: from you know, six o'clock to nine o'clock every night, like,
• 6:50
  Speaker 4: they can just work for you and you can dictate
• 6:52
  Speaker 4: what they do and tell them what to do and now,
• 6:55
  Speaker 4: so they're gaining real life experience from working for you,
• 6:58
  Speaker 4: and you're saving money, they're gaining money.
• 7:02
  Speaker 1: It's a win win situation.
• 7:04
  Speaker 5: An illegal alien from Guatemala charged with raping a child
• 7:08
  Speaker 5: in Massachusetts. An MS thirteen gang member from Al Salvador
• 7:12
  Speaker 5: accused of murdering a Texas. Man of Venezuelan charged with
• 7:16
  Speaker 5: filming and selling child pornography in Michigan. These are just
• 7:20
  Speaker 5: some of the heinous migrant criminals caught because of President
• 7:24
  Speaker 5: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 7:27
  Speaker 5: Secretary of Homeland Security under President Trump, attempted illegal border
• 7:32
  Speaker 5: crossings are at the lowest levels ever recorded, and over
• 7:36
  Speaker 5: one hundred thousand illegal aliens have been arrested. If you
• 7:39
  Speaker 5: are here illegally, your next you will be fined nearly
• 7:43
  Speaker 5: one thousand dollars a day, imprisoned, and deported. You will
• 7:47
  Speaker 5: never return. But if you register using our CBP home
• 7:51
  Speaker 5: app and leave now, you could be allowed to return legally.
• 7:55
  Speaker 5: Do what's right, leave now. Under President Trump, America's laws,
• 8:00
  Speaker 5: order and families will be protected.
• 8:02
  Speaker 1: Sponsored by the United States Department of Homeland Security,