Paying child to help with DC.

[Unregistered]

I am new to day care and have a 14 year old daughter who I would like to pay to help with my business.

She would help on days off school, after school cleaning up and maybe some of my planning on the weekends/ evenings (cutting, sorting, etc.)

Can someone tell me what they think is a fair amount to pay her?Also, how do you handle things when you are paying your own child to help you, like payment, anything for taxes, etc?

How do I then claim this expense on my taxes, what category, and what records do I need?

Glad I found this site, I need help!

[TomCopeland]

Hiring daughter

You can pay your child the federal minimum wage of $7.25 per hour. You should create a job description, keep track of the hours/days she works and get a receipt signed by her when you pay her (either cash or check). If your child earns less than $5,950 in 2013 she won't owe any federal income taxes. Check with your state department of labor to see if she will owe state income taxes or if you must purchase workers compensation insurance.

Since she is under age 18 you don't have to withhold Social Security/Medicare taxes, or pay federal unemployment taxes.

Here's an article I've written on this:http://www.tomcopelandblog.com/2011/...ve-or-not.html

Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab