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Day 7 – How to Hire Your Kid Legally — And Save Taxes

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  Day 7 – How to Hire Your Kid Legally — And Save Taxes Hiring your child might sound like a sentimental idea, but it’s actually a strategic tax-saving move —if done right. The IRS allows business owners to hire their minor children under certain conditions, offering both tax deductions for your business and income tax benefits for your child . Here's how to make it work legally and efficiently. ✅ Why Hire Your Child? 1. Your Business Gets a Deduction Wages paid to your child are a legitimate business expense. That means your business income (and tax liability) goes down. 2. Your Child May Owe Zero Taxes As of 2025, a child can earn up to $14,600 (the standard deduction) without paying any federal income tax— as long as it’s earned income (i.e., wages, not gifts or allowances). 3. No Payroll Taxes for Some Businesses If your business is a sole proprietorship or a partnership where both partners are the child’s parents , and your child is under 18 , then: No Social S...
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Do I Need to Pay Myself a Salary as a Business Owner?

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  πŸ’Ό Do I Need to Pay Myself a Salary as a Business Owner? One of the most common questions solo entrepreneurs ask once their business starts generating consistent income is: "Should I pay myself a salary?" The answer depends on your business structure—and choosing the right approach can impact both your tax liability and legal compliance . πŸ‘€ If You're a Sole Proprietor or Single-Member LLC Good news: You don’t need to pay yourself a formal salary. In these structures, the IRS treats you and your business as the same entity. This means: You take an owner’s draw , not a salary. All profits flow through to your personal tax return via Schedule C . You're not considered an employee, so no payroll taxes or W-2s are involved. But remember: You’re still responsible for self-employment tax (which covers Social Security and Medicare), so setting aside about 25–30% of profits for taxes is a smart move. 🏒 If You're an S Corporation Here’s where thi...
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How to Set Up a PTO Plan in ADP RUN Payroll: A Step-by-Step Guide

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  πŸ› ️ How to Set Up a PTO Plan in ADP RUN Payroll: A Step-by-Step Guide Managing paid time off (PTO) is essential to keeping your team happy and compliant with labor policies. If you use ADP RUN , setting up a PTO plan is straightforward — but only if you know where to look. This guide walks you through every step, from setup to payroll integration. Let’s get started. πŸ› ️ Step 1: Access the PTO Settings Log in to your ADP RUN account. In the left-hand navigation menu, go to Settings . Scroll down and select “Paid Time Off” under the Time section. This is where you’ll manage your time-off policies, accrual rules, and employee assignments. ➕ Step 2: Create a New PTO Plan Click Add Plan . Choose your plan type: Vacation , Sick , Personal , or a Custom plan. Click Next and begin configuring the plan. Select which employees will be eligible for this plan. You can create multiple plans if different roles or employee classes require unique policies. ...
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Hiring a Remote Employee in Georgia: What You Must Know About Payroll Compliance

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  πŸ“Œ Hiring a Remote Employee in Georgia: What You Must Know About Payroll Compliance As remote work becomes more common, many small business owners find themselves navigating complex payroll requirements across state lines. If you hire a remote employee who lives and works in Georgia , there are critical compliance steps you must take — even if your business is located in another state. In this post, we'll walk through exactly what you need to do — and when foreign business registration might be required. πŸ“ The Scenario You’ve just hired your first remote employee who lives in Georgia . What does that mean for payroll taxes? ✅ Step 1: Register for Georgia State Payroll Taxes Even though your business is not located in Georgia, you are still responsible for complying with Georgia’s tax laws if your employee performs work there . That means: 1. Georgia Income Tax Withholding You must: Register for a Georgia Withholding Tax Account through the Georgia Tax Center Wit...
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What Is Bank Reconciliation? A Must-Know Guide for Every Business

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  🏦 What Is Bank Reconciliation? A Must-Know Guide for Every Business Keeping your business finances in order is more than just tracking income and expenses—it’s also about making sure your records match reality. That’s where bank reconciliation comes in. Whether you're a small business owner, a bookkeeper, or just trying to better understand your financials, bank reconciliation is a powerful process to stay on top of your cash flow and prevent costly errors. ✅ What Is Bank Reconciliation? Bank reconciliation is the process of comparing your company’s internal financial records (usually from your accounting software or general ledger) with the records provided by your bank statement. The goal is simple: ensure that the balance in your books matches the actual balance in your bank account at a specific point in time. If there are differences, you investigate and resolve them. πŸ” Why Is Bank Reconciliation Important? Here are a few critical reasons why this process matter...
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The Power of Early Investing: Why I Wish I Had Started Sooner

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  The Power of Early Investing: Why I Wish I Had Started Sooner If I could turn back time, there’s one financial decision I would make without hesitation: investing early and consistently in a diversified portfolio, particularly the S&P 500. The regret of not taking action sooner weighs on me, and if you're on the fence about investing, let my experience be your wake-up call. Time Is the Greatest Asset The magic of investing isn’t in timing the market—it's in time in the market. Compounding, the ability for investments to grow exponentially as gains generate more gains, is a force so powerful that even modest contributions can turn into substantial wealth given enough years. Had I started investing in my early twenties, even with small amounts, I could have built a significant financial cushion without needing to chase high-risk trades or speculative assets. The Strength of Diversification A diversified investment strategy—especially in index funds tracking the S&...
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10 Tax Deductions Every Small Business Owner Should Know_Examples

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 Here are detailed examples of tax-saving strategies tailored for small business owners, categorized by entity type and tax approach. These strategies are useful for both maximizing deductions and reducing taxable income legally and effectively. 🧾 1. Deductible Business Expenses ✅ Examples Home Office Deduction : If you use a portion of your home exclusively for business, deduct a proportion of rent, mortgage interest, utilities, and property taxes. Simplified Method : $5/sq ft up to 300 sq ft = up to $1,500 deduction. Vehicle Expenses : Use mileage deduction (67 cents/mile for 2024) or actual expense method (gas, insurance, maintenance). Office Supplies and Equipment : Deduct everything from computers and printers to pens and paper. Business Travel : Airfare, hotel, 50% of meals, and even ride-shares while on business trips are deductible. πŸ’³ 2. Retirement Plan Contributions ✅ Examples Solo 401(k) : Contribute up to $23,000 (202...
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10 Tax Deductions Every Small Business Owner Should Know

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Running a small business isn’t easy—but saving on taxes can be. If you’re a freelancer, side hustler, or running your own shop, you’ve got more ways to cut your tax bill than you might think. Let’s break down 10 common tax deductions that could save you serious cash. 1. Home Office Deduction Working from home? If there’s a space you use just for work (like that corner in your guest room), you could qualify for a home office deduction. There’s a simple method based on square footage or a more detailed one where you track your actual expenses. 2. Business Use of Your Car Using your car for work errands or meetings? You can deduct either your mileage or actual costs like gas and maintenance. Pro tip: Apps like MileIQ make tracking a breeze. 3. Office Supplies & Gear Buying pens, notebooks, or even a new laptop? If it’s for your business, it likely counts. Bigger items might qualify for a full write-off in the year you buy them. 4. Internet and Phone Bills If you use your phone or ...
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