06/02/2026
Can you put your child on payroll? 🤔
Yes, in many cases you can, and it may come with significant tax advantages. If your child performs legitimate work for your business and is paid a reasonable wage, their wages may be deductible to the business and taxed at their typically lower tax rate.
A few important requirements:
✔️ The work must be real and age-appropriate
✔️ The pay must be reasonable for the duties performed
✔️ Time records and payroll documentation should be maintained
✔️ Payroll and labor laws still apply
Every business structure and family situation is different, so it's important to make sure the setup is done correctly.
Have questions about hiring family members or other tax-saving strategies? Reach out before making payroll changes.
