If you’re in independent business there are a lot of things you need to do in addition to producing the product or performing the service that you offer.
You must keep track of your business-related mileage, purchases such as office equipment and software, and other expenses. While you’re working for one and another client, you must manage your relationships with them as well as market yourself–preferably before your current contract ends–so that you can stay steadily booked. There are invoices to send and 1099-MISCs to receive. Endless emails about the job you’re doing, plan to do, hope to do, or just did.
The IRS has official rules about tax withholding should you decide to hire your own child to work for you. “Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship…[but] Payment for the services of a child are subject to income tax withholding, regardless of age.”
All this comes down to the question I’m posing today: how much should I pay my six-year-old to help me out with a straightforward lickum stickum job?
As a personal writing venture that I think will complement my editorial business, I have started a family history blog. So before my most recent networking schmooze I printed out labels with the new blog address on there. And sat my daughter down to stick the labels on the back of my business cards.
It was a fun diversion after homework but not nearly as exciting as the Mario Racing Kart Galaxy O’ Stars game (or whatever it’s called) she wanted to play. So, she considered it work. Any ideas for appropriate salary or bartering deal for a job such as this?