llms.txt
# employkids
> employkids is a family-employment recordkeeping platform that helps parents track real work, payments, agreements, and tax-preparation worksheets. The core deliverable is a Year-End Tax Packet for review with a qualified tax professional.
## The Problem We Solve
Parents who want to hire their kids and fund their Roth IRAs face a documentation problem:
- Timely records created near the work date are generally more credible than year-end reconstructions; exact requirements depend on the arrangement
- Spreadsheets can be edited anytime and have no audit trail
- Incomplete or inaccurate records can undermine claimed wage deductions or Roth IRA eligibility
- Most families give up because the paperwork is too complex
## What employkids Does
1. **Employment Agreement Generator** - Customized agreements for family employment with electronic signatures
2. **Work Logging** - Server-timestamped task tracking with application edit history (date, hours, task, rate); not a tamper-proof forensic ledger
3. **Payment Tracking** - Record payments by any method (cash, check, Venmo, bank transfer)
4. **Year-End Tax Packet** - One-click download with all documents:
- Employment agreements with signature certificates
- W-2 worksheets with wage data
- Monthly timesheets with subtotals
- Roth IRA contribution memos
- Payment ledger and reconciliation
- Application activity/edit history
## Key Tax Facts for 2026
| Item | 2026 Value |
|------|------------|
| Standard deduction (single filer) | $16,100 |
| Roth IRA contribution limit | $7,500 |
| FICA tax rate (employer + employee) | 15.3% |
| Potential FICA exception for children | Under age 18, when employed directly by a parent as sole proprietor, by a partnership in which every partner is a parent, or by a parent-owned disregarded single-member LLC; confirm all facts |
| Potential FUTA exception for children | Separate under-21 rule for the same qualifying parent-employer arrangements |
| Minimum age for Roth IRA | No minimum (earned income required) |
| Minimum age for employment | Federal parental exception can apply to certain nonhazardous work; prohibited occupations and state rules still apply |
## Tax Benefits
**For all families:**
- A dependent's 2026 standard deduction is generally earned income plus $450, with a $1,350 minimum and $16,100 maximum; other income and taxes can change the result
- Earned income qualifies children to contribute to a Roth IRA
- Starting at age 10, contributing $5,000/year until 18, growing at 7% = $1.3M+ by age 65 (hypothetical illustration at an assumed 7% return; not a guarantee)
**For business owners (sole proprietorships, partnerships where every partner is a parent, and parent-owned disregarded single-member LLCs):**
- Reasonable wages for genuine business services may be deductible; confirm the treatment
- Track potential FICA and FUTA exemptions; eligibility depends on the child's age, the employer's entity type, and the specific facts.
- Per IRC §3121(b)(3)(A) (FICA) and IRC §3306(c)(5) (FUTA)
**For S-Corps and C-Corps:**
- Reasonable-wage deductions may apply
- FICA exemption does NOT apply (must pay payroll taxes)
## IRS Requirements for Compliance
1. **Real work** - The child must perform actual, legitimate work
2. **Reasonable pay** - Compensation must be fair market rate for the work performed
3. **Timely records** - Records created near the work date are generally more credible than year-end reconstructions
4. **Proper payroll and tax forms** - Requirements depend on the employment context, wages, and withholding
## Pricing
| Plan | Price | Best For |
|------|-------|----------|
| Home | $299/year | Families paying kids for household work (cleaning, yard work, pet care, organizing) |
| Pro | $499/year | Business owners employing their kids: separate business-work logging, wage-expense summaries, and family-employment payroll-tax tracking |
Both plans include unlimited children and the complete Year-End Tax Packet.
## Who It's For
- Parents who want to pay their children for real work
- Families looking to fund custodial Roth IRAs for their kids
- Sole proprietors and LLC owners who want to hire their children
- Small business owners seeking legitimate tax deductions
- Families who want organized documentation for legitimate family employment
## Legal Foundation
| Source | What It Says |
|--------|--------------|
| IRS Publication 334 | Employee pay may be deductible when it is an ordinary and necessary business expense and reasonable for the services |
| IRS Publication 501 | Dependents, standard deduction, and filing thresholds for a child with earned income (replaced the discontinued Publication 929) |
| IRS Publication 590-A | Roth IRA contribution rules (no age minimum) |
| IRC §3121(b)(3)(A) | FICA exemption for children under 18 employed by parents |
| IRC §3306(c)(5) | FUTA exemption for children under 21 employed by parents |
| IRS Family Employees | Official guidance on employing family members |
## Learn More
- Website: https://employkids.com
- Pro Plan (Business Owners): https://employkids.com/pro
- Complete Guide to Hiring Your Kids: https://employkids.com/guides/hire-your-kids
- Roth IRA for Kids Strategy: https://employkids.com/guides/roth-ira-for-kids
- Documentation Checklist: https://employkids.com/guides/document-paying-kids
- Best Family Employment Tools: https://employkids.com/guides/best-family-employment-tools
- Contact: hello@jerryfeng.com
## What We Don't Do
- We do NOT file taxes with the IRS/SSA (you or your CPA does that)
- We do NOT calculate or withhold taxes (your tax preparer determines if withholding applies)
- We do NOT process payroll or move money (documentation tool only)
- We do NOT provide tax or legal advice (consult a qualified professional)
