Hire your kids.
Save on taxes. Fund their Roth IRA.
We handle the paperwork.
Everything you need to stay compliant.
You pay your kids to do real work for your business. Deduct their wages as a business expense.1 The math is simple. Pay them $5,000 at a 32% bracket, you save $1,600. Sole props and partnerships also skip FICA2 - another $765.
Your kids typically pay nothing. As long as they earn under the standard deduction, they owe zero federal income tax.3 You've moved money from your high tax bracket to their zero bracket.
Now they have earned income, so they can contribute to a Roth IRA.4 Put in $5,000 a year starting at age 10, and by 65 that compounds to over $1.3 million tax-free.
How much could you save?
Child typically pays $0 federal income tax (under standard deduction). Payroll tax exempt when parent employs own child under 21 (sole props, disregarded LLCs & spousal partnerships). Roth projection assumes 7% annual growth. State taxes not included.
The IRS
wants proof
Hiring your kids is completely legal.
But if you get audited, you need documentation. Employment agreements. Time logs. Tax forms.
Without them? The IRS disallows the contributions and charges you penalties.
Most parents learn about this and get excited. Then they see the paperwork and just give up.
Internal Revenue Service
Includes penalties & interest
Reason for adjustment
Roth IRA contributions disallowed due to insufficient documentation.
- No employment agreement on file
- Missing work logs / timesheets
- Payments not properly documented
Employ your kids the right way.
Simple to set up. Easy to use. Fully compliant.
Hire your kids in minutes
Set up your kids as business employees. Pick from 100+ tasks. Built-in rate guidance. We generate the contracts.
Log work and payments
You handle the money.
We handle the documentation.
- Automatic server timestamps
- Complete activity history
- Separate household vs business work
- Optional photo proof
- Works with any payment method, any brokerage
Year-End Tax Packet
One click. Everything organized. Every document timestamped and traceable.
Download anytime. Your data is stored securely, so you can regenerate documents whenever you need them.
Maximize your tax savings
Deduct their wages as a business expense. Skip payroll taxes if you're a sole prop or spousal partnership.
- Wages become a deductible business expense
- FICA exempt (sole props, LLCs, spousal partnerships)
- Wage Expense Summary for your tax preparer
Simple pricing.
Pays for itself in tax savings. No hidden fees.
30-day money-back guarantee.
Pro
Employ your kids through your business. Backed by decades of IRS guidance and tax court precedent.
- Log household and business work
- Sign employment contracts online
- Year-End Tax Packet export
- W-2 worksheet data
- Wage expense summary for deductions
- Track payroll tax exemptions
- Timesheets & work logs
- Roth contribution tracking
- Priority support
- Unlimited children
Looking for household employment only? See the Home plan ($299/year).
Questions? hello@employkids.com