? Tom...Hiring My Own Children

[frugalmama4]

Hello again Tom,

I have two minor kids ages (8 & 11) I plan to hire for the home daycare, I have typed up a contract and time cards.

Instead of an hourly pay rate could I do a weekly salary...$5-$7 weekly?

Thanks!

[Unregistered]

Also,,

Along with this, Tom, can you please tell us what to do if we didn't keep records on this last year???
I know, big no no! I paid my 13 year old son to help with things for the business all summer and off and on throughout the year.
How do I recreate this and what paperwork do i need to dedeuct this on my taxes???

Thanks

[beachgrl]

This is an interesting question as I have thought of letting my son or niece help me and paying them a daily amount or something but wasnt sure how that worked with the tax stuff and all..curious here too

[TomCopeland]

Hiring own children

Hello again Tom,

I have two minor kids ages (8 & 11) I plan to hire for the home daycare, I have typed up a contract and time cards.

Instead of an hourly pay rate could I do a weekly salary...$5-$7 weekly?

Thanks!

Yes, you can pay them weekly. Make sure they are doing work that is directly related to the business, no general household chores.

[TomCopeland]

Hiring own children

Along with this, Tom, can you please tell us what to do if we didn't keep records on this last year???
I know, big no no! I paid my 13 year old son to help with things for the business all summer and off and on throughout the year.
How do I recreate this and what paperwork do i need to dedeuct this on my taxes???

Thanks

If you paid in cash, reconstruct your records to show what days you paid him, how much, and what he did. Claim this on Schedule C. Don't list it under "wages" because the IRS will assume you owe social security taxes. List it under "legal and professional services."