May 27, 2013
Prepare Your Kids for Summer Job Expenses
Find out how to teach your kids about taxes and job paperwork before they start their summer jobs.
If your kids are starting their first summer jobs soon, fill them in on how payroll taxes work so they don't get sticker shock when their paychecks arrive. Common payroll deductions include federal and state income taxes, Social Security, Medicare, health and unemployment insurance – and sometimes uniforms and union dues.
Remind your kids they'll have to fill out a W-4 Form, which employers use to determine how much income tax to withhold. Even if they start out as self-employed, doing part-time jobs like babysitting or yard work, that income is also subject to income tax – although they may not make enough to meet the tax threshold.
Bottom line: Like 'em or not, taxes are a part of life. Teach your kids how the system works.
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