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    hip. These wages are also not subject to Federal unemployment tax (FUTA). These wages may be subject to withholding
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    Can You really hire your children to help in your daycare?

    This question is coming up more and more these days. The answer is a resounding Yes.

    The IRS in Pub 13 (circular E) employer’s tax guide, says under Family Employees. Child employed by Parents. Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship. These wages are also not subject to Federal unemployment tax (FUTA). These wages may be subject to withholding

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    The answer is a resounding Yes.

    The IRS in Pub 13 (circular E) employer’s tax guide, says under Family Employees. Child employed by Parents. Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship. These wages are also not subject to Federal unemployment tax (FUTA). These wages may be subject to withholding

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    s. Child employed by Parents. Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship. These wages are also not subject to Federal unemployment tax (FUTA). These wages may be subject to withholding
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    trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship. These wages are also not subject to Federal unemployment tax (FUTA). These wages may be subject to withholding
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    When I first started my business, a colleague suggested to me that I bill my clients based on the results I created for them. It was an appealing idea at the time - after all, who wouldn't take me up on that offer, and so long as I performed, I'd get paid. Sounds too good to be
    hip. These wages are also not subject to Federal unemployment tax (FUTA). These wages may be subject to withholding taxes depending on how much you are paying. Will the child exceed the filing limit for filing an income tax return? The limit is $5150.00 for year 2006.

    The real question is what you can pay them for and what records you need to keep to justify the deduction. Above it states very clearly that the payments must be for work performed. There must be an employee, your child, and an employer you the child care provider for the deduction to be valid.

    I advoc

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