Frequently Asked Questions

Yes! The IRS explicitly allows business owners to pay their children for legitimate work. The key requirements are: (1) the work must be real and age-appropriate, (2) compensation must be reasonable for the work performed, and (3) proper documentation must be maintained. Kids Payroll ensures all three requirements are met automatically.

There is no official minimum age set by the IRS. Children as young as 7 can perform legitimate work like filing, organizing, or simple data entry. The key is that the work must be real and appropriate for their age. Kids Payroll provides age-appropriate job templates and market-rate guidance to keep you compliant.

Kids Payroll works with LLCs, S-Corps, partnerships, and sole proprietorships. The specific tax benefits vary by entity type, but all can legally employ their children. During setup, we'll guide you through the specific compliance requirements for your business structure.

Tax savings depend on your tax bracket and how much you pay your kids. For example, if you're in the 35% bracket and pay two kids $12,000 each annually ($24,000 total), you could save approximately $8,400 in federal taxes. Our built-in calculator shows your exact savings based on your situation.

You need job descriptions, time logs, proof of work performed, and payroll records. Kids Payroll automatically generates and stores all required documentation, including timestamped work logs, photo verification, market-rate justifications, and IRS-compliant payroll summaries. Everything is audit-ready from day one.

Your kids can contribute their earned income to a Roth IRA (up to $7,000 in 2024). This money grows tax-free for life. Kids Payroll tracks earned income, validates eligibility, and connects with partner providers to facilitate Roth IRA contributions. We also project long-term growth to show the compound interest impact.

We offer a 14-day free trial. After that, our Core plan is $9-19/month and includes unlimited kids, unlimited tasks, full compliance documentation, and basic financial education. Our Pro plan ($19-29/month) adds advanced tax analytics, multiple business support, and priority support.

Most families complete setup in under 10 minutes. You'll add your business info, create kid profiles, set up job titles and pay rates, and you're ready to go. Running payroll takes about 2 minutes once you're set up.