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Do I Need to File a W2 for Paying My Child and Wages on Taxes?

In summary, to pay your children for their work in your Pampered Chef business, you can set up a payroll system through your bank or use a payroll service. They will need to fill out a W-4 form for tax purposes and you must keep track of their hours and wages. If you pay them over $600 in a calendar year, you are required to give them a W-2 form for tax reporting purposes. These rules apply regardless of whether they are your biological children or not. You can deduct the wages you pay your children as a business expense, as long as it is reasonable and in line with what you would pay a non-related employee for the same work. There are no age restrictions for paying your children or providing them
J
jwpamp
1,639
Any CPAs or those who have had a professional do this before, could you respond? I love the thoughts of everyone, but would like to make sure I am doing this right....

Ok, I paid my 17 year old son to do work for me -- and kept good documentation.....do I need to file a W2 for him before I can take off his wages on my taxes?


TIA!
 
That is a very good question! And I am very curious to find this info too! My son helps me a lot, for which I pay him for, so I would like to know!
 
  • Thread starter
  • #4
TY Keri-Lyn!
 
Sorry guys....I didn't find this info out! :cry:
 

1. How do I pay my children for their work in my Pampered Chef business?

To pay your children for their work in your Pampered Chef business, you can set up a payroll system through your bank or use a payroll service. You will need to have your children fill out a W-4 form for tax purposes and keep track of their hours and wages.

2. Do I have to give my children a W-2 form if I pay them for working in my Pampered Chef business?

Yes, if you pay your children over $600 in a calendar year, you are required to give them a W-2 form for tax reporting purposes. This is regardless of whether they are your biological children or not.

3. Can I deduct the wages I pay my children for working in my Pampered Chef business?

Yes, you can deduct the wages you pay your children as a business expense. However, the wages must be reasonable and in line with what you would pay a non-related employee for the same work.

4. Are there any age restrictions for paying my children and providing them with a W-2 form?

There are no age restrictions for paying your children or providing them with a W-2 form. However, they must be performing legitimate work for your business and the wages must be reasonable for the work they are doing.

5. Can I pay my children in products or discounts instead of cash?

No, according to the IRS, wages must be paid in cash or a cash equivalent, such as a check or direct deposit. Paying your children in products or discounts would not be considered a legitimate form of payment for their work in your Pampered Chef business.

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