– Under Construction – Launch Date Scheduled For Late Oct, 2025 –
“Hire Your Kids – Slash Your Taxes.”
As a business owner, you can legally pay your dependents through your company – and dramatically reduce your family’s overall tax burden.
Overview – Why This Work So Well
1. Your Kids Are in a Lower Tax Bracket
Most children/dependents are in a 0% or 10–15% tax bracket—much lower than yours. In many cases, they also avoid state tax and don’t have to pay Social Security or Medicare. That means more money stays in the family.
2. Your Company’s Costs Stay the Same
You don’t need to increase your business’s expenses. You can shift a portion of your own wages to your child—keeping your company’s bottom line steady while reducing your family’s total tax bill.
3. You Can Hire Them Younger Than You Think
In most cases, normal child labor laws don’t apply when a parent hires their own child. That means even younger kids may be eligible to help—and get paid legally.
4. You Can Use Their Income to Build Wealth Early
Wages your child earns can also be contributed to a Roth IRA, an optional way to build long-term, tax-free savings.
5. Audit-Ready and IRS-Compliant
I’ll show you how to pay your kids the maximum legal amount while keeping airtight records that stand up to scrutiny.
6. Its Simple and Totally Worth Your Time
This is an easy strategy to implement—and a powerful use of your time as a parent, business owner, and taxpayer.
How it Works
Step 1. Decide What They Can Do
– Identify, age and skill appropriate tasks they can perform: administrative work, cleaning, filing, social media support, or even modeling for marketing (especially useful for younger kids).
– Match the workload to their availability. For example, a college student may only contribute in the summer, while a high schooler might do a few hours each week. Even five hours a week adds up to significant tax savings over the year.
Step 2. Maximizing the Savings
– The more wages you legitimately shift into your kids’ accounts, the more taxes the family saves.
– Remember: money paid to children doesn’t have to be “fun money” — it can still go toward ordinary family expenses like food, clothes, or school costs.
– The smartest way to maximize savings is with a CPA-prepared opinion letter from PaprikaTax.
– Official opinion + audit protection.
– Takes just 5–10 minutes to complete online.
– Savings often equal 2–4x minimum wage, adding up to thousands per year – and you’re protected if the IRS audits or questions the pay rate.
Step 3: Set Them Up as an Employee
– Treat them like any other employee — the IRS expects some formality.
– File the necessary documents: W-4 (withholding), I-9 (eligibility), and direct deposit setup.
– Add them to your payroll platform (e.g., Gusto, QuickBooks Payroll, ADP).
– Keep simple documentation (i.e. PaprikaTax opinion letter, basic time/task log, pay records)
– If your business already has employees, it’s seamless. If not, this is your first step to formalizing payroll.
Testimonials
“I had heard that hiring your kids could save on taxes, but I was afraid I’d mess something up. This was hands-down the best $49 I’ve spent all year. The advice was clear, easy to follow, and totally legit. I’m now saving thousands—and my kid thinks it’s cool to be on payroll!”
— Erica M., Freelance Designer & Mom of Two
“As a small business owner, I’m always looking for smart tax strategies—but I had no idea this one was so effective. The call gave me everything I needed to get started, and the optional opinion letter gave me peace of mind. Highly recommend if you’re a parent with a business.”
— Jared K., Owner, CleanStart Services LLC
“This is one of those strategies that sounds too good to be true, but it’s absolutely legit. I loved how simple they made the process, and how confident I felt afterward. It’s not often that something is this easy, this legal, and this profitable.”
— Lisa G., Real Estate Investor & Mom of Three
About Us
At PaprikaTax, we make it simple and safe for small business owners to hire their kids and save thousands in taxes. Founded by David Nagy, CPA—an advisor with 25+ years of experience helping entrepreneurs stay compliant and maximize their tax strategies—we provide expert guidance and audit protection without the complexity or high cost. Our mission is clear: keep more money in your family’s pocket while giving you confidence every step of the way.
Disclaimer: In compliance with U.S. Treasury Department Circular 230, any tax advice provided by PaprikaTax is not intended or written to be used for avoiding penalties under the Internal Revenue Code. Our opinions are based solely on the accuracy and completeness of the information provided by the client. PaprikaTax is not responsible for the consequences of inaccurate or incomplete information, nor for a client’s failure to maintain adequate records or comply with applicable tax laws.
