Small Business Owners in the United States with Kids or Dependents:
A CPA-backed system that helps business-owner parents quickly maximize safe tax savings, stay protected in an IRS audit, and give their kids real-world work and money experience.
Shift some income from higher-taxed parents to lower-taxed dependents – so the family as a whole pays less tax.
Pay kids for real, age-appropriate work they can help with – building skills, responsibility, and stronger family connections.
Turn earned income into savings—keeping more of your money working for your family.
This short video explains the idea at a high level—what it is, why families use it, and what happens when you get started.
Example: Nine Year Old, Model
A young child can be paid for legitimate modeling or promotional work in the business.
A one-time payment of around $3,500 can create a small but real tax savings when done correctly for real business use.
Example: 17 Year Old, Social Media Manager
When a teen handles real, ongoing work—like managing social media—those wages can add up to meaningful savings.
In this case, the family saved $14,760 (details shown below).
Example: 22 Year Old, Operations Manager
College-aged dependents can take on higher-paid, more complex work.
In this example, that led to $46,229 in total tax savings over time—even though most of the money paid stayed in the family account and was used for college, food, and housing.
We analyze your situation to determine a wage strategy that supports meaningful tax savings while staying grounded in real, defensible work. Rather than defaulting to conservative or arbitrary numbers, we help you think through tasks, scope, and structure so wages are aligned with what your dependents actually do for the business. The result is a strategy designed to legitimately shift income, reduce overall family tax burden, and still hold up under scrutiny.
We analyze your situation to determine a wage strategy that supports meaningful tax savings while staying grounded in real, defensible work. Rather than defaulting to conservative or arbitrary numbers, we help you think through tasks, scope, and structure so wages are aligned with what your dependents actually do for the business. The result is a strategy designed to legitimately shift income, reduce overall family tax burden, and still hold up under scrutiny.
This isn’t about pushing boundaries — it’s about doing things the right way. Your strategy is built with IRS expectations in mind, including reasonable wages, credible documentation, and consistency across the entire setup. We focus on helping you understand why the approach works, not just what to do, so you can move forward with confidence instead of uncertainty.
Before you implement anything, we flag key labor law and workers’ compensation considerations that commonly surprise families who try to do this on their own. These checks help ensure you’re aware of age-based rules, restricted activities, and workers’ comp requirements that apply to hiring dependents. Addressing these upfront reduces risk and prevents avoidable issues later.
Many parents get stuck at the same question: what can my kids actually do? We provide practical, age-appropriate task ideas to help you think through legitimate work that supports your business. These examples are meant to spark ideas and help you match responsibilities to capability — not to force a one-size-fits-all approach.
We include a time tracking template designed specifically for dependents working in a family business. It encourages clear documentation of hours and tasks while also helping kids learn how to describe their work responsibly — a skill that translates directly into resume building and real-world experience. This supports both proper documentation today and long-term developmental value.
You receive a personalized video recorded by Dave Nagy, CPA, reviewing your information and walking through your specific strategy. This is not generic content — the video addresses your situation directly, explains the reasoning behind the recommendations, and highlights important considerations unique to your family and business. Many clients find this makes the entire process feel clearer and more actionable.
To bridge the gap between strategy and action, you’ll receive a clear “What To Do Next” letter that outlines how to move forward. This includes guidance on setting things up, coordinating payroll, and getting your dependent started correctly. It’s designed to remove guesswork and give you a logical sequence to follow without feeling overwhelmed.
In addition to the core hire-your-kids strategy, you receive access to additional tax savings playbooks that extend the benefits further. These cover related planning ideas — such as Roth IRA considerations for dependents — that many families overlook. They’re designed to help you think strategically about how today’s decisions can create long-term financial advantages.
If your situation is more complex or you’d prefer hands-on guidance, optional live consulting with a CPA is available. These sessions allow you to ask questions, walk through implementation details, or pressure-test decisions before moving forward. Consulting is entirely optional and available when you feel you need additional support beyond the DIY materials.
This isn’t about pushing boundaries — it’s about doing things the right way. Your strategy is built with IRS expectations in mind, including reasonable wages, credible documentation, and consistency across the entire setup. We focus on helping you understand why the approach works, not just what to do, so you can move forward with confidence instead of uncertainty.
Before you implement anything, we flag key labor law and workers’ compensation considerations that commonly surprise families who try to do this on their own. These checks help ensure you’re aware of age-based rules, restricted activities, and workers’ comp requirements that apply to hiring dependents. Addressing these upfront reduces risk and prevents avoidable issues later.
Many parents get stuck at the same question: what can my kids actually do? We provide practical, age-appropriate task ideas to help you think through legitimate work that supports your business. These examples are meant to spark ideas and help you match responsibilities to capability — not to force a one-size-fits-all approach.
We analyze your situation to generate a wage strategy that supports meaningful tax savings while staying grounded in real, defensible work. Rather than defaulting to conservative or arbitrary numbers, the process evaluates tasks, scope, and structure so wages align with what your dependents actually do for the business. The system includes a built-in, dependent-specific time-tracking template designed to standardize documentation of hours and responsibilities, while also helping kids learn how to describe their work in resume-ready terms. The result is a clearly defined strategy that legitimately shifts income, reduces overall family tax burden, and holds up under scrutiny.
If your situation is more complex or you’d prefer hands-on guidance, optional live consulting with a CPA is available. These sessions allow you to ask questions, walk through implementation details, or pressure-test decisions before moving forward. Consulting is entirely optional and available when you feel you need additional support beyond the DIY materials.
You receive a personalized video recorded by Dave Nagy, CPA, reviewing your information and walking through your specific strategy. This is not generic content — the video addresses your situation directly, explains the reasoning behind the recommendations, and highlights important considerations unique to your family and business. Many clients find this makes the entire process feel clearer and more actionable.
A strategy only creates value if it’s implemented correctly. We provide a clear What To Do Next Letter to help you implement the plan on your own.
If you prefer extra support, you can also purchase live consulting time for questions or review
In addition to the core hire-your-kids strategy, you receive access to additional tax savings playbooks that extend the benefits further. These cover related planning ideas — such as Roth IRA considerations for dependents — that many families overlook. They’re designed to help you think strategically about how today’s decisions can create long-term financial advantages.
Your plan is reviewed for age and dependency eligibility, hazardous work restrictions, workers’ compensation requirements, and related labor rules—helping you move forward with clarity and confidence
Instead of just a spreadsheet, you get a CPA-signed opinion letter documenting your strategy—so you can implement with confidence, not fear of an IRS challenge, even as enforcement becomes more automated.
AI can run numbers, but it can’t identify every variable, weigh tradeoffs, or guide implementation. This strategy requires human judgment across tax, labor, and family considerations
Tools to help you determine 1. what work your child can realistically do, 2. the maximum hourly rate you can pay—often leading to the best overall tax result while staying within IRS guidelines—and 3. how to track their time, using simple templates and guidance that build accountability and create a strong resume foundation. Our proprietary system considers all relevant variables and guides you to a reasonable, defensible hourly rate for your dependents – quickly
Alongside the core plan, you receive five DIY playbooks covering additional savings ideas—such as how to think strategically about college financial aid. Many clients choose to loop in their financial advisor for more complex situations
A strategy only creates value if it’s implemented correctly. We provide a clear What To Do Next Letter to help you implement the plan on your own.
If you prefer extra support, you can also purchase live consulting time for questions or review
Talk to a real tax professional when something isn’t clear or your situation is unique. Email Q&A is included, with optional live support available.
15-minute intake – 15 minutes to implement
If you can’t find your answer, reach out to support@paprikatax.com
Yes. You can save your progress at any time and return whenever it’s convenient. Feel free to start now and explore the intake at your own pace.
Yes. You can generate a secure link to share your in-progress intake with a spouse, tax advisor, or other trusted collaborator so you can complete it together.
Tools and AI can generate numbers, but they can’t weigh conflicting rules, sign a CPA opinion letter, or stand behind a strategy. Small details often change the outcome.
No. Many clients use PaprikaTax alongside their CPA. We focus specifically on hiring your kids and maximizing the related tax savings.
That’s common. Every submission is reviewed by a tax advisor, and live support is available if you want deeper guidance.
Yes. You can pause at any point and schedule live consulting with Paprika. If you’ve already made a payment, it will be credited toward the standard live consulting fee—so you won’t pay twice.
In some cases, a compliant approach may not reduce total tax — or may even increase it. Our role is to help you understand the tradeoffs and identify additional tax strategies that, when implemented alongside dependent compensation, often lead to meaningful savings.
