# Quick Answers

Direct answers to the most common questions about hiring your kids and funding their Roth IRA.

## Tax

**How much can I pay my child tax-free in 2026?**  
In 2026, you can pay your child up to $16,100 tax-free (the standard deduction). Sole proprietors also save 15.3% in FICA taxes on wages to children under 18.  
[Read answer](/content/answers/pay-child-tax-free-2026/index.html)

**Do I need to issue a W-2 for my child?**  
Yes, you must issue a W-2 to your child at the end of each year they work for you, reporting all wages paid regardless of amount.  
[Read answer](/content/answers/w2-child-employee/index.html)

**What is reasonable compensation for a child?**  
Reasonable compensation is what you'd pay an unrelated person for the same work. Typical ranges: $5-8/hr for ages 5-7, $8-12/hr for ages 8-11, $10-18/hr for ages 12+.  
[Read answer](/content/answers/reasonable-compensation-child/index.html)

## Legal

**What age can I hire my child?**  
There is no federal minimum age for hiring your child in your business. The IRS has accepted children as young as 7. The work must be real and age-appropriate.  
[Read answer](/content/answers/minimum-age-hire-child/index.html)

**What jobs can kids do for a family business?**  
Kids can do any age-appropriate work for a family business: filing, data entry, cleaning, inventory, social media, photography, and more. We list 50+ legitimate tasks by age.  
[Read answer](/content/answers/jobs-kids-family-business/index.html)

**Is hiring your kids legal?**  
Yes, hiring your kids is completely legal and IRS-approved. The IRS explicitly allows parents to employ their children. Requirements: real work, reasonable pay, proper documentation.  
[Read answer](/content/answers/hiring-kids-legal/index.html)

## Business

**Can I hire my child if I have an S-Corp?**  
Yes, you can hire your child through an S-Corp. You can deduct wages as a business expense. However, the FICA exemption does NOT apply—you must pay payroll taxes.  
[Read answer](/content/answers/hire-child-s-corp/index.html)

## Roth IRA

**How do I prove my child's earned income for Roth IRA?**  
Prove earned income with employment agreements, work logs with timestamps, payment records, and a W-2. The IRS requires contemporaneous documentation—records created when work was performed.  
[Read answer](/content/answers/prove-earned-income-roth-ira/index.html)

## Documentation

**Can I pay my child in cash?**  
You can pay your child in cash, but it's not recommended. Cash payments are hard to document and prove in an audit. Use checks, bank transfers, or digital payments for a clear paper trail.  
[Read answer](/content/answers/pay-child-cash/index.html)

**What records do I need to hire my child?**  
You need four key documents: employment agreement, contemporaneous work logs, payment records, and a W-2. The IRS requires records created when work occurs, not reconstructed later.  
[Read answer](/content/answers/records-hire-child/index.html)