Optimize Your Tax Benefits with Children on the Payroll
A guide for Raleigh families to leverage payroll strategies for tax savings.
Request ConsultationWhat is it?
Utilizing children on the payroll is a strategic approach that allows parents to shift income to their children, potentially lowering the overall family tax burden. For families in Raleigh, this method can be particularly advantageous, especially when structured correctly. By employing your children in a family business, you can pay them a reasonable wage for their work, which can be deducted as a business expense.
It's essential to ensure that the work performed is legitimate and that the wages are in line with what you would pay a non-family member for similar work. This strategy not only helps in reducing taxable income but also provides your children with valuable work experience and savings opportunities. Regularly reviewing your payroll strategy can help you maximize tax benefits while ensuring compliance with IRS regulations.
Quick Stats
Who it's for
Early-Career High Earners (30s–40s)
Building wealth quickly and looking to minimize taxes early through long-term strategy.
Our Approach
Understand the Legal Requirements
Familiarize yourself with the labor laws and regulations regarding employing minors in your state.
Determine Appropriate Work Tasks
Identify suitable tasks for your children that align with their age and skills while benefiting your business.
Set Reasonable Wages
Establish a fair wage for the work performed, ensuring it reflects the market rate for similar positions.
Keep Detailed Records
Maintain accurate records of hours worked and tasks completed to support your payroll strategy and tax deductions.
What we can do
Deferral Vehicle Comparison Report
Understand which approach fits best: Opportunity Zone, 1031, Installment Sale, etc.
- Side-by-side comparison of top 3-5 deferral strategies
- Legal/compliance notes for each
- Risk/reward breakdown
- Holding period requirements
- Recommendations based on your asset class
Capital Gains Tax Timing Plan
A strategic guide to selling assets while managing tax exposure.
- Asset-specific tax impact model
- Suggested timing windows based on gain amounts
- Coordination with CPA or financial advisor
- Visual timeline for key deferral strategies
- Optional state-specific optimization
Strategy Session: Gain Management Planning
Align gain deferral with your broader financial and business goals.
- 45-minute tax strategy call
- Portfolio & asset review
- Custom deferral roadmap
- Short-term and long-term options
- Action plan + timeline
Why Fortress?
Fortress Financial Partners simplifies wealth management with a modern Family Office approach integrating investments, taxes, insurance, and estate planning all together under one roof.
Fiduciary Integrity
We operate with honesty, transparency, and ethical responsibility in every decision.
Expertise
Our team brings deep industry knowledge and strategic insights to guide your financial future.
Trust
Building lasting relationships through reliability, consistency, and client-focused service.
Client-First
Your goals drive our strategies, ensuring personalized solutions that align with your needs.
Growth
We focus on long-term financial success, helping you build wealth and security for the future.
More Strategies
FAQs
Having children on the payroll means employing your children in your business and paying them a wage, which can help reduce your taxable income.
Ensure that the wages paid are reasonable for the work performed and keep detailed records to substantiate the employment.
Children can perform various tasks such as administrative work, marketing, or assisting in the family business, as long as the work is appropriate for their age and abilities.
Yes, there are age restrictions and regulations regarding the type of work children can perform, which vary by state and federal law.
Yes, as long as the wages are reasonable and the work performed is legitimate, you can deduct their wages as a business expense.
Common mistakes include failing to document work performed, paying excessive wages, and not adhering to labor laws regarding child employment.