“A Little-Known Way to Pay Family
(Without Payroll Taxes?)”
To get my complete article
with all the details…
Most tax pros know the “hire your child” strategy.
But here’s what I’ll admit—I used to think that once the child was over 18, or if the business was a corporation, the payroll tax benefit was largely gone.
Turns out, that’s not always the case.
Here are three points to consider:
- There’s a lesser-known way to pay family members—even older children—that can legally shift income into a lower bracket without triggering payroll taxes when structured correctly.
- The key isn’t wages… it’s how you define the work. A properly designed one-time project can change the entire tax outcome.
- Tax Tip (real dollars here): In the right situation, you could deduct over $23,000 at your top rate while your family member reports little to no tax—and avoids both payroll and self-employment taxes.
Now, I’ll be the first to say—this strategy lives and dies on proper classification and documentation. Get sloppy, and the IRS will have something to say about it.
But when done right, it’s one of the cleaner ways to move income within the family.
See how it works: A Little-Known Way to Pay Family and Save on Taxes