{"id":1213,"date":"2026-05-01T16:26:33","date_gmt":"2026-05-01T16:26:33","guid":{"rendered":"https:\/\/www.sasscpas.com\/blog\/?p=1213"},"modified":"2026-05-01T16:26:34","modified_gmt":"2026-05-01T16:26:34","slug":"how-hiring-your-child-this-summer-can-reduce-taxes","status":"publish","type":"post","link":"https:\/\/www.sasscpas.com\/blog\/index.php\/2026\/05\/01\/how-hiring-your-child-this-summer-can-reduce-taxes\/","title":{"rendered":"How Hiring Your Child This Summer Can Reduce Taxes"},"content":{"rendered":"\n<p>The portion of small businesses employing their own children has increased by more than 50% since 2018. This 2025 data from&nbsp;<em>Gusto<\/em>, a provider of payroll, benefits and human resources software, reflects staffing challenges and a growing interest in involving the next generation in family businesses. From a tax perspective, hiring your minor child this summer, while school is out, can also be advantageous.<\/p>\n\n\n\n<p>The wages you pay your child are generally deductible as a business expense. This deduction can reduce your federal income tax bill, as well as your self-employment tax and state income taxes, if applicable.<\/p>\n\n\n\n<p>Even if your child earns more than the standard deduction, any remaining income is typically taxed at the child&#8217;s lower marginal rate, likely only 10%. This strategy can reduce your family&#8217;s overall tax liability.<\/p>\n\n\n\n<p>Additional savings may be available on payroll taxes. If a business is a sole proprietorship or a partnership where both partners are the child&#8217;s parents, wages paid to a child under age 18 are generally exempt from Social Security and Medicare taxes. Wages paid to a child under age 21 are exempt from federal unemployment tax.<\/p>\n\n\n\n<p>To qualify for these benefits, the job must be legitimate, compensation must be reasonable and proper payroll records should be maintained. Let us know if you&#8217;d like to learn more about the tax benefits.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sasscpas.com\/consultation.htm\" data-type=\"URL\" data-id=\"https:\/\/www.sasscpas.com\/consultation.htm\">Contact us for guidance.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The portion of small businesses employing their own children has increased by more than 50% since 2018. This 2025 data from&nbsp;Gusto, a provider of payroll, benefits and human resources software, reflects staffing challenges and a growing interest in involving the next generation in family businesses. From a tax perspective, hiring your minor child this summer, [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":1214,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1213"}],"collection":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=1213"}],"version-history":[{"count":3,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1213\/revisions"}],"predecessor-version":[{"id":1221,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1213\/revisions\/1221"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media\/1214"}],"wp:attachment":[{"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=1213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=1213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sasscpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=1213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}