Posts Tagged "children financial"

Reap the benefits of hiring your child for the summer

Posted on Jul 10, 2017

Hiring your children to work in your business can be a win-win situation for everyone. Your kids will earn money, gain real-life experience in the workplace, and learn what you do every day. And you will reap a few tax benefits in the process. The following guidelines will help you determine if the arrangement will work in your situation. Make sure your child works a real job that he or she can reasonably handle, no matter how basic or simple. Consider tasks like office filing, packing orders, or customer service. Treat your child like any other employee. Expect regular hours and appropriate behavior. If you are lenient with your child, you risk upsetting other employees. To avoid questions from the IRS, make sure the pay is reasonable for the duties performed. It’s not a bad idea to prepare a written job description for your files. Include a W-2 at year-end. Record hours worked just as you would for any employee. If possible, pay your child using the normal payroll system and procedures your other employees use. Hiring your children works best if you are a sole proprietor. It has additional tax benefits not available if your business is organized as a C corporation or an S corporation. If you have questions, give us a call. Together we can determine if hiring your child is the right course of action for your business and your...

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Guide your children to financial maturity

Posted on Oct 1, 2013

Teaching your children about money and finances is easiest when you start early. Here’s a quick review of what you should teach your children at each age if you want them to become financially competent adults. Preschool – Skills to Teach * Identify coins and bills; learn what each is worth. * Understand that you can’t buy everything; choices are necessary. * Save money in a piggy bank. Grade School – Skills to Teach * Read price tags; learn comparison shopping. * Do money arithmetic; make change. * Manage an allowance; use it to pay for some of child’s own purchases. * Open a savings account and learn about interest. * Participate in family financial discussions about major purchases, vacation choices, etc. Teens – Skills to Teach * Work to earn money. * Budget for larger purchases. * Learn to use a checking account. * Learn about investing – stocks, mutual funds, CDs, IRAs, etc. * Share in financial planning (and saving) for college. College/Young Adult – Skills to Teach * Learn about borrowing money (interest, default, etc.). * Use credit card judiciously. * Participate in family estate planning discussions. Knowing about money – how to earn it, use it, invest it, and share it – is a critical life skill. It’s never too early to start teaching your children about financial matters. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+ , LinkedIn , Facebook, and Twitter.  ...

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