Mainebiz

V O L . X X X I I N O. X X V N OV E M B E R 2 , 2 0 2 6 12 B U S I N E S S M A I N E B U S I N E S S M A I N E B U S I N E S S N E W S F RO M A RO U N D T H E S TAT E Rinck Advertising, a brand and behav- ior agency in Lewiston, was awarded a four-year contract by the Vermont Agency of Human Services, Department of Health to provide marketing, commu- nications, media services and behavior change initiatives supporting statewide tobacco control and chronic disease prevention through June 2030. Elmet Technologies, a high-perfor- mance tungsten and molybdenum refractory metal product manufacturing and machining services company in Lewiston, announced it was awarded a $36 million contract by the Defense Logistics Agency to supply high-perfor- mance molybdenum materials, tung- sten alloys and precision wire to pro- duce jet engine components and other demanding aerospace applications. Pine State Trading Co. announced that it entered into a definitive agreement with KEG 1 LLC, a multi-state beer and beverage distributor network, to acquire a controlling equity investment in the fourth-generation, family-owned bever- age distribution company in Gardiner and create KEG 1 Pine State. Thomas College in Waterville was awarded a $3 million Title III Exclusive Rebates for Small Businesses Learn more about Efficiency Maine's rebates for small businesses at efficiencymaine.com/at-work/small-business. Leverage Higher Rebates for Your Business and Save On Energy-Efficient Upgrades. Small business rebates are available for all eligible commercial customers, including nonprofits, schools, and municipalities. Eligibility for small business incentives is simple and based on average monthly energy usage. Qualifying small businesses can access rebates 25% to 40% above our standard rebate for energy-saving solutions like high-efficiency lighting retrofits and HVAC equipment. A S K AC E The Association for Consulting Expertise (ACE) is a nonprofit association of independent consultants who value "success through collaboration." The public is welcome to attend its regular meetings to share best practices and engage with industry experts. For more information go to www.consultexpertise.com. Q: My spouse and kids all work in the business. How should I be paying them? ACE advises: Start with the same principle that would apply to any employee: family members should be paid a reasonable market rate for real work, with that compensa- tion run through payroll. Define the job first. The IRS looks at whether the work is legiti- mate and whether the pay is reasonable for the role. A teenager earning $40,000 to occasionally "help with social media" can raise questions. So can a spouse working substantial hours for little or no pay. Each family member should have a defined role, appropriate compensation, time records, and a W-2. From there, the rules differ depending on who is working and how the business is structured. A child's wages are taxed to the child, and some may be covered by the standard deduc- tion. If the business is a sole proprietorship, or a partnership owned only by the child's parents, wages paid to children under 18 are generally exempt from Social Security and Medicare taxes. That exemption does not apply if the business is incor- porated, including as an S corporation. There is also an age- related distinction. Federal law generally does not set a minimum age for chil- dren working in a busi- ness owned solely by their parents, but hazardous occupations are treated differently. State child labor laws can be more restrictive, so check the rules where the business operates. For a spouse, payroll can also help build Social Security credits and retirement savings. Finally, keep compensation separate from ownership. Wages reflect the work someone performs; distributions reflect ownership. That distinction matters when one child works in the business and another does not. Getting this right also helps with succession, financing or a future sale. Buyers and lenders want to understand the business's true earnings, and inflated or understated family compensation may eventually need to be normalized. A good starting point is to list each family member, what they do and what an outside employee would reasonably be paid for the same role. Michael Reeder, a Certified Public Accountant and ACE member, is managing partner at Reeder CPA Group. He can be reached at michael@reedercpagroup.com A n s w e r e d b y M i c h a e l R e e d e r , R e e d e r C P A G r o u p

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