Technical topics regarding tax preparation.
22-Jan-2023 10:40am
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Can a salon hire family members 14 yrs of age?
Can their payroll be placed into a 401k plan tax free? Without offering to other employees? Are there any restrictions
Does the family member need to be a son/daughter or can it be nice/nephew?
Are there any income limits for the 14 yr old/salon?
is it requirement to pay minimum wage?
Thank you for your help
22-Jan-2023 11:28am
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Those are mostly legal questions.
What's the definition of a nice nephew?
22-Jan-2023 11:39am
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Agreed.
There are some tax questions here, but the more important ones are legal and the right answer will depend upon your state.
~Captcook
22-Jan-2023 11:55am
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If you think it through, you might come to the conclusion that it's probably a much better idea to put the 14 year old nice nephew's earnings into a Roth IRA rather a pretax account.
22-Jan-2023 12:03pm
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Especially if the earnings don’t exceed for
Example $12,950
23-Jan-2023 11:39am
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Apart from the legal labor law questions, you cannot offer a 401(k) Plan to your relatives only and not other employees.
24-Jan-2023 6:11pm
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In NY minors, including 14 year-olds, can work. The issue is the number of hours they can work, which varies with age.
https://dol.ny.gov/hours-work-minors
Steve
24-Jan-2023 8:29pm
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Nilodop wrote:Those are mostly legal questions.
What's the definition of a nice nephew?
Sorry. meant "niece"
27-Jan-2023 2:02pm
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HenryDavid wrote:Especially if the earnings don’t exceed for
Example $12,950
Why 12,950?
27-Jan-2023 7:26pm
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newbie wrote:Why 12,950?
Standard deduction
Dave
Taxation is the price we pay for failing to build a civilized society. ~ Mark Skousen
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