THE KID PAYROLL PLAYBOOK
How to Pay Your Kids Tax-Free and Build Their Wealth
Take advantage of the power of early, tax-free compounding
Learn how to legally hire your children in your business, pay them tax-free wages, and fund Roth IRAs that can grow to $1M+.
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✅ Lower your family’s overall tax bill using existing IRS and California rules
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✅ Create real earned income for your child that qualifies for a Roth IRA
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✅ Follow a clear, documented process you can defend in an audit
Why hire your child?
Tax Efficiency
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Instead of taking all your income in your high bracket, you can shift a portion to a child who, if structured correctly, often pays 0% federal and state income tax on their wages while you still deduct those wages as a business expense.
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Long-Term Wealth Building
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W-2 wages qualify your child for Roth IRA contributions. Even modest contributions—like $5,000 per year for their first 18 years—can potentially grow to $1 million+.
What You'll Learn To Do
Step 1 — Choose the right structure
We focus on structures where rules are generally most favorable.
Step 2 — Create a real job for your child (even babies and toddlers)
Step 3 — Pay reasonable wages & run payroll
W-2 payroll, documentation, and required IRS/EDD filings.
Step 4 — Keep wages within thresholds where possible
Structure wages so the child’s income tax is often minimized (sometimes to zero), depending on the facts and current-year thresholds.
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Step 5 — Fund a Roth IRA
Because the income is earned, your child can contribute up to the lesser of their wages or the annual IRA limit. Do this every year, and you’ll see just how powerful long-term compounding can be—one of the core drivers behind Warren Buffett’s wealth-building approach.
IMPACTFUL STRATEGIES
Our Vision
The Kid Payroll Playbook is a how-to resource designed for business owners looking to build long-term wealth for their children. The guide can also be used for other states. Our aim is to facilitate tax-efficient strategies for financial success.
WHY CHOOSE US?
We provide unmatched resources and support tailored for California business owners seeking to legally employ their children. Our expertise ensures that you can do so with confidence.
Guidance
Expert Insights
Our strategies empower you to navigate the complexities of tax laws and employment regulations carefully. We provide clear templates and resources that allow you to focus on what matters—your family.
Education
Empower Through Knowledge
With practical insights on Roth IRAs and tax brackets, our approach gives your children financial literacy and independence. Investing in their future can yield rich dividends.
Resources
Comprehensive Tools
Gain access to a range of tools, including job templates and calendars, designed to keep your payroll compliant while you raise a financially savvy next generation.
Community
Support Network
Join our community of like-minded parents and business owners. We are here to help.