When parents first think about hiring their kids, one of the big worries is:
👉 “Do I really need a timesheet every time my child licks an envelope?”
The answer: not always.
Yes, time tracking is one way to prove your kids worked. But small family businesses can use smarter alternatives that reflect how work really happens at home.
1. The Problem With Strict Time Tracking
Family business jobs rarely look like punching a clock.
- Your 11-year-old helps for 20 minutes on Instagram captions.
- Later, they spend an hour organizing shipping boxes.
- Then, while hanging around after dinner, they test your online form for bugs.
Forcing kids into corporate-style timesheets feels unnatural and is overkill for many families.
2. The Alternative: Task-Based Documentation
Instead of tracking minutes, track responsibilities.
- Write down the categories of work your child does (social media, filing, research, cleaning, etc.).
- Note a reasonable estimate of hours per week or month for each category.
- Assign fair market pay rates for those categories.
💡 Example: Instead of a log with “Monday, 4–4:30: filed papers,” keep a record that says:
- Filing / organizing: ~4 hrs per month
- Social media help: ~3 hrs per month
- Research: ~3 hrs per month
Total = ~10 hrs @ blended fair market rates.
3. Why It Works
- Reflects real life: Kids work in bursts, not 9–5 shifts.
- Simpler for parents: Less paperwork, easier compliance.
- Still defensible: If challenged, you can show categories, hours, and market rates — which is exactly how most small business jobs work. Its not as good as a timesheet, but a reasonable auditor should feel comfortable with it. Note – this may not be something that you want to organize yourself or rely on AI to do. Consider having a tax advisor provide you with clear documented instructions.
4. PaprikaTax Method = Higher Wages (i.e. more tax savings) + Better Records
The PaprikaTax app makes this simple:
- Breaks “Admin” into its true tasks (social media, database, receptionist, research).
- Pulls market wage data so you don’t underpay.
- Creates blended job descriptions that justify higher hourly rates.
- Adds premium adjustments for things like company size and nonparticipation in benefits
- Generates neat documentation — without the pain of daily timesheets.
5. A Parent’s Perspective
Think of it this way:
- You’re not trying to prove your child spent 8:47–9:12 on a spreadsheet.
- You’re proving your child has a real role, with real tasks, at a realistic pay rate.
That’s what the IRS cares about — and that’s what PaprikaTax helps you document.
🌶️ Bottom line: Don’t let timesheets scare you off.
If timesheets are too much of a burden, you can skip the stopwatch, focus on responsibilities, and still capture all the savings that come from putting your kids to work in the family business.
How we can help…No signups, No upfront fee, Super fast, Max tax savings…www.PaprikaTax.com
– Written by David Nagy, CPA
PAPRIKA – “Parents Allocate Payroll Rationally Increasing Kids’ Assets”
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