Where In MMK Do I Put ….
I have struck a deal with my 13 year old Daughter to compensate her for “playing” with the DCK. We are keeping track of her hours and at the end
of the month I will pay her cell phone bill instead of her paying me and if she has “extra” hours we will the talk about what she can have for compensation most likely will be clothing that she wants. Where and as what do I record this in MMK. |
Originally Posted by familyschoolcare: |
do you me mean like putting it under expenses and then under employee wage?
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Originally Posted by daycare: |
Originally Posted by familyschoolcare: |
Originally Posted by daycare: wage is $8 and hour and she works 10 hours that is $80 as long as what I buy her is less than or equal to $80 then it is OK. However, if I pay her a wage then I have to take out taxes and pay part of them ect. ect. ect. |
Originally Posted by familyschoolcare: |
If we wait long enougph tom will answer then we will all know.
Also he might clarify if I got the "barter" thing wrong. But I do not think I did |
Originally Posted by familyschoolcare: |
hiring daughter
You can handle this in one of two ways:
1) Non-business - give her gifts (pay cell phone, buy clothing) in exchange for her working for you. The gifts are not a business expense and they are not income to your daughter. Don't enter anything into MM. 2) Business - compensate her for her work for your business by giving her items (pay cell phone, buy clothing). Deduct the value of the items you give her as a business expense. If she gets less than $5800 worth of stuff in a year she doesn't have to report it as income because she is under age 18. Since she is under age 18 you don't have to withhold social security tax. Check with your state to see if you must purchase workers compensation insurance (probably not). You must keep careful records of the hours of work she does for your business. Enter the value of the items you give her in MM under Other Expenses - Wages. |
thank you for the information.
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