---
title: "FAQ — Pay Your Kids Through Your Business | Kids Payroll"
description: "Answers to common questions about paying your kids through your business: legality, ages, tax exemptions, documentation, and how the Kids Payroll app works."
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[Kids Payroll ](/)

FeaturesHow It WorksBenefits[State Laws](/state-labor-laws/)[Free Guide](/guide/)[Tax Calculator](/tax-calculator/)[About](/about/)[Blog](/blog/)[FAQ](/faq/)[Download App](https://apps.apple.com/us/app/kids-payroll-pay-your-kids/id6755955657)

1.  [Home ](/)
2.  FAQ 

# Frequently Asked Questions

Everything you need to know about Kids Payroll

Below you'll find answers to the most common questions about hiring your children through your family business, the tax benefits available to you, and how Kids Payroll helps you stay compliant with IRS requirements.

## Legal & IRS Compliance

### Is paying my kids through my business actually legal?

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.

### What is the minimum age for paying my kids?

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.

### What types of businesses can use Kids Payroll?

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 & How It Works

### How much can I save in taxes?

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.

### How does the Roth IRA integration work?

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.

## Documentation & Setup

### What documentation do I need to maintain?

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.

### How long does setup take?

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.

## About Kids Payroll

### What does Kids Payroll cost?

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.

### Learn More

[→ How to Pay Kids Through Your LLC](/blog/pay-kids-through-llc/)[→ Roth IRA Rules for Kids](/blog/roth-ira-for-kids-rules/)[→ Calculate Your Tax Savings](/tax-calculator/)[→ IRS Documentation Guide](/blog/hire-kids-irs-documentation/)

## Still Have Questions?

Download Kids Payroll and start paying your kids the right way.

[Download on the App Store](https://apps.apple.com/us/app/kids-payroll-pay-your-kids/id6755955657)

### Kids Payroll

Transform "paying kids through your business" from a confusing tax loophole into a streamlined, automated, family-wealth engine.

[](mailto:hello@kidspayroll.com)

#### Product

-   Features
-   How It Works
-   [Tax Calculator](/tax-calculator/)
-   [FAQ](/faq/)
-   [State Labor Laws](/state-labor-laws/)
    -   [Delaware](/state-labor-laws/delaware/)
    -   [Florida](/state-labor-laws/florida/)
    -   [Louisiana](/state-labor-laws/louisiana/)
    -   [Maine](/state-labor-laws/maine/)

#### Resources

-   [How to Pay Kids Through LLC](/blog/pay-kids-through-llc/)
-   [Roth IRA for Kids](/blog/roth-ira-for-kids-rules/)
-   [Tax-Free Payment Limits](/blog/pay-child-tax-free-2026/)
-   [All Articles →](/blog/)

#### Company

-   [About](/about/)
-   [Blog](/blog/)
-   [Contact](mailto:hello@kidspayroll.com)
-   [Privacy](/privacy/)

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