What a real wage to your kid is actually worth.
Shift income from your bracket to theirs, and see whether your entity type lets you skip FICA on it entirely.
Illustrative estimate · Not tax advice
Read next
Paying Your Children Through Your Business: The Tax Strategy That Actually Works
Children employed by a parent's sole prop pay no FICA on their wages. The income shifts from your high bracket to their near-zero bracket. Here's what makes it defensible.
Tax strategy & retirementHiring Your Children or Spouse in Your Business: The Tax Benefits and the Rules
Business owners can hire their children and shift income to a lower tax bracket — and children under 18 working in a parent's sole proprietorship avoid FICA and FUTA entirely. Real work, reasonable wages, and documentation are required.
Tax strategy & retirementThe Augusta Rule: What It Is, What It Actually Requires, and How to Do It Right
Section 280A(g) lets you rent your home to your S-corp for up to 14 days per year — tax-free rental income, business deduction for the entity. Here's what the rule actually requires.