Alto CPA Group, LLC. - Blog #Business TaxesAlto CPA Group, LLC. - Blog #Business Taxeshttps://www.altocpagroup.com/blogs/tag/business-taxesFri, 15 May 2026 00:09:08 -0700http://zoho.com/sites/<![CDATA[How to Hire Your Children for Your Business (the Right Way)]]>https://www.altocpagroup.com/blogs/post/how-to-hire-your-children-for-your-business-the-right-wayHiring your children can be a powerful tax strategy and can also be a great way to help fund their college education. It is also important to follow all state and IRS regulations carefully. This includes keeping diligent records and following best practices to avoid any issues.]]>

Keep It in the Family: 10 Smart Tips for Hiring Your Children the Right Way

Thinking about bringing your child into the business? Many small business owners do — and it can be a win-win. Your child gets early exposure to real-world work, you get an extra set of hands, and there can even be tax advantages. But, if not done correctly, it can trigger red flags with the IRS and lead to denied deductions or penalties. Here's how to do it the right way.


✅ 10 Essential Tips for Hiring Your Children in Your Business

1. Hire Them for Real Work
They must perform legitimate tasks that help your business. Personal errands don’t count. Think: cleaning the shop, managing social media, or organizing files.

2. Comply with Employment Laws
Treat your child like any employee — get an EIN, have them complete a W-4 and I-9, and follow all onboarding procedures.

3. Follow Child Labor Laws
Age-appropriate tasks and hours are a must. Check federal and state labor laws to stay compliant.

4. Pay Real Wages
Pay by check or direct deposit. College tuition or meals don’t count as “wages.”

5. Make It a Reasonable Wage
Wages should reflect the market rate. Overpaying will raise IRS eyebrows.

6. Separate Household and Business Tasks
Only business-related tasks are deductible. Cleaning the office? ✅. Cleaning your home? ❌.

7. Withhold the Right Taxes
If your business is a sole proprietor or a partnership between parents, your child under 18 is exempt from Social Security and Medicare taxes. Otherwise, standard payroll taxes apply.

8. Keep Good Payroll Records
Hours worked, wages paid, taxes withheld — document it all.

9. Deposit Wages to Their Account
Establish a paper trail by using bank deposits, Roth IRAs, or 529 plans.

10. Help Them File a Tax Return
Regardless of age, your child may need to file. It can also lead to refunds and is great practice for financial responsibility.

👨‍👩‍👧 Bonus Tip: Create an employment agreement for your child just like you would for any other employee. It strengthens your documentation and shows the IRS you're serious about doing it right.


At Alto CPA Group, LLC, we help small business owners implement tax-smart strategies — like hiring your children — in full compliance with IRS rules. Contact us if you’d like guidance setting this up correctly, including payroll support, tax filings, and documentation.

Set Up a Call
]]>Mon, 04 Aug 2025 00:00:55 -0500<![CDATA[2025 “One Big Beautiful Tax Bill”:   Key Tax Law Changes You Need to Know]]>https://www.altocpagroup.com/blogs/post/2025-beautiful-tax-bill-key-tax-law-changes-you-need-to-knowThe 2025 "One Big Beautiful Tax Bill" introduces a series of taxpayer-friendly reforms aimed at reducing the burden on working Americans and ]]>

The 2025 "One Big Beautiful Tax Bill" introduces a series of taxpayer-friendly reforms aimed at reducing the burden on working Americans and small businesses. The bill was signed into law on July 4, 2025. Here’s a quick summary of the most impactful tax law changes:


✅What’s Changing in 2025:


1. No Tax on Tips
Workers can deduct up to $25,000 in tip income. Phases out at $150,000 single / $300,000 joint income.
2. No Tax on Overtime Pay
Up to $12,500 per person (or $25,000 per couple) of overtime pay can be deducted. Same income phase-outs as tips.
3. Car Loan Interest is Now Deductible
Interest on U.S.-made car loans (up to $10,000 annually) is deductible. Phased out at $100,000 (single) / $200,000 (joint).
4. Senior Tax Bonus
Taxpayers aged 65+ get a new $4,000 per-person deduction. Phases out starting at $75,000 income (single) / $150,000 (joint).
5. Bigger Standard Deduction
All filers receive an additional $1,000 (individual) or $2,000 (joint) on top of their existing standard deduction.
6. Child Tax Credit Bumped Up
Increased to $2,200 per child (non-refundable), with $1,400 refundable. Income limits remain at $200K/$400K.
7. Pass-Through Business Deduction Lives On
The 20% QBI deduction (or 23% in House version) for self-employed and small businesses becomes permanent.
8. 100% Bonus Depreciation Returns
Businesses can fully expense qualifying equipment through 2029.
9. R&D and Business Deductions Expanded
Full R&D expensing returns. More generous Section 179 expensing and improved interest deductibility.
10. Estate & Gift Tax Exemption Increased
The exclusion is raised to $15 million, inflation-adjusted after 2025.

💡 Other Notables:

  • Third-party payment reporting threshold restored to $20K/200 transactions (e.g., Venmo, PayPal).
  • Opportunity Zones extended with new rural incentives.
  • Some deductions (e.g., moving expenses, miscellaneous itemized) are permanently eliminated.

These provisions aim to simplify the tax code, reward hard work, and support business growth. As always, check with your tax advisor to understand how these changes may affect you personally.

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