If your dependent children are working in your business, it is possible that the IRS will deny the wage expense; even if the children report the income on their personal taxes.This is an area that is very closely scrutinized by the IRS. Basically, IRS holds that the employer (parent) is making support payments disguised as wages. It is important to keep very accurate, detailed records that show the hours the children worked and the tasks performed. The tasks must be consistent with their ages and ability.If there are other employees doing the same type of work, the wages for the dependent child must be comparable. Typically, a bonus will not be allowed unless there is proof that bonuses would also be paid to unrelated employees.
(c) 2017 Carl Stoddard For more information about using the Fine-Ants in your product or service, please contact Carl at [email protected]
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