Employment Kids

Employment for Kids

Parents employ kids

Employment for Kids in Parent's Business

• you can make them an employee
• you can hire them as a sole proprietor (they are self employed themselves, independent contractors)

1. Employed kids have "earned income" needed to invest in Roth IRAs
2. Parent's taxable business income goes down as they now have another deductible expense

Employment for Kids - Zazzle Parents

Parents are opening up Zazzle shops for themselves, creating a nice side home business (usually in addition to their 40 hour a week employment schedule).

At some point, parents are realizing that cute little Johnny's drawing would look great on a T-shirt or on a card with a particular saying. At this point, the parent has a choice to make:

• Offer employment to their child paying a commission for items sold on the parent's website
• Let the child become a Self Employed Child.

Employment for Kids as Household Employees

We hear you when you say you want to teach your child "family responsibility" and they should not be paid for chores. So, separate the tasks. Making their bed can be a daily chore while cleaning the kitchen floor will be a household task.

We're not saying this is easy and the details required are in The Kid's ROTH IRA Handbook but what we are saying is parents who choose not do this are letting a huge opportunity for tax free compounding growth go by the wayside. Even if you only paid your child $5 a month, which is $60 a year starting from a young age until age 18...it will make a difference at retirement age.

<a title="kid roth ira" href="http://www.tracytrends.com/books/kid-roth-ira.html">The Kids Roth IRA Handbook -</a> How to establish a child Roth IRA from the very first paycheck.