For many parents who own small businesses, two of their primary goals are passing on a strong work ethic to their children while also lowering their tax bill.

While many parents work for a large employer and may not have the option to hire their children directly; others who own small businesses may find that employing their children can be a great way to start building that work ethic while also receiving tax benefits.

Significant tax advantages may include tax free income for the children up to the standard deduction, avoiding Social Security, Medicare and federal unemployment taxes, and reducing the parents' tax bill.

In addition, children with earned income can make Roth IRA contributions at a young age to maximize the value of tax-free growth for decades – ultimately creating the potential for a multi-million-dollar Roth IRA in retirement.

If you are interested in learning more about how to incorporate your children into the family business, as well as helping them get started saving for retirement, we think you’ll enjoy this episode. Thanks for listening!

For more details on employing your children, check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/hiring-your-children-saving-taxes-and-teaching-responsibility/