Kids, the DOL and financial literacy
By Dian Vujovich
Keeping in the April is Financial Literacy Month theme, here is some good news for parents who hire their under 18-aged kids plus info on a free financial literacy program from the Department of Labor (DOL).
Escaping all of the long arm tax consequences of Uncle Sam’s tax system takes some doing. But if you are a small business owner— like a sole proprietor or have an LLC— who has kids she’d like to employ there are tax breaks available that will surely increase your financial literacy acumen. And, even save your business a couple of bucks.
Because kids under the age of 18 don’t have to pay Social Security, Medicare and federal unemployment taxes, hiring them as employees in your business offer some sweet tax breaks for you and the young employee. For instance, that little darling won’t owe a penny to The Uncle on the first $6,100 that they are paid. That breaks down to about 500 bucks a month: A nice chunk of change for the kid and a financially teachable work and money management opportunity for all concerned.
In addition to keeping the wealth under one roof, you’ll get a business write-off which may reduce your self-employment tax, federal and state income taxes and might even lower your adjusted gross income, taxes on Medicare, investment income, etc.
If you ask me, the many benefits of introducing Tommy and Tammy into the work force via your business are huge and quite frankly far outnumber any Uncle Sam affords.
To learn more, contact a tax consultant or read a MarketWatch story on the subject at: http://tinyurl.com/cl6r93y
Re the Department of Labor: Circle April 30 on your calendar. Then, plan on spending from 3 to 4 p.m. EDT attending the DOL’s financial literacy webcast titled, “Start Early to Take Charge of Your Financial Future: A Webcast for College Seniors and Young Workers.”
Co-sponsored with the Department of Education and the Certified Financial Planner Board of Standards the program promises to teach viewers how to do everything from saving for tomorrow to managing all sorts of debt including that from student loans and credit cards. Plus, show how to wisely take advantage of long-term savings/retirement programs employers offer.
Registration is required.
Too learn more and register, visit: http://tinyurl.com/cwg5uqm .
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