How business owners can fund kids’ schooling

Being a business owner gives you some advantages when it comes to saving for your child’s university experience.

Owning a company means you can pay your kids to work for you. Any earnings below the basic personal amount, which is $11,138 (2015) are considered tax-exempted income.

You also have the option to create employee scholarship plans.

If you’re eligible, the company can pay a tax-deductible scholarship directly to your children or those of other employees. Since the scholarship isn’t paid to the employee, it’s not considered a taxable benefit to the employee, but the child must declare the income.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.