How to pay my child to work for my hospitality businss

[masuth13]

What is the best way to pay for my child to work for me, for my hospitality business? I believe it can be written off but I'm not sure how to properly do it, documentation wise as well as how to show it on yearly taxes? 

[JohnB5677]

You have two alternatives to pay him/her.  

You can issue a W-2 paycheck.  

• You can get software to do this, but I suggest a parole company.  
• Taxes and quarterly statements are required.

You can issue him a 1099-NEC.  

• He will have to pay his own taxes including self employment taxes.
• The self-employment tax rate is 15.3%. That rate is the sum of 12.4% for Social Security and 2.9% for Medicare.

Either of these can be deducted on your business tax return.

[test203]

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