Start Early. Build Wealth.

Hire your children with confidence.

Ensure your family payroll meets every IRS requirement. Tracta automates the documentation, time-tracking, and record-keeping you need — generating pay stubs, W-2s, quarterly and annual tax forms, and audit-ready records.

Start with $10 free credit. No credit card required.

All 50 states
Bank-level encryption
IRS compliant

Simple setup. Compliance built in.

1

Add your business

LLC, freelancer, or side gig — any self-employment works. Takes less than a minute.

2

Add your child

Enter their name and birthdate. We suggest age-appropriate tasks and market-based pay rates that meet IRS reasonable compensation requirements.

3

Run payroll

We prefill time entries based on age, job duties, and state labor rules. Run payroll in under a minute.

Give them a head start

Starting young means more years to grow. See the power of compound interest.

Family Employment Tax & Roth IRA Calculator

2
$16,100
37%
10-17 years

Tax Savings (per year)

$11,914

Business deduction at 37% bracket

Tracta $70/yr →

170x return

Tax Exemptions (per year)

Social Security & Medicare

$4,927

exempt

Federal Unemployment

$84

exempt

State Unemployment

$378

exempt

Roth IRA Growth (per child)

ValueContributed

Contributed over 51 yrs

$383K

Value at 65

$10.6M

($2.3M in today's dollars)

× 2 = $21.1M family

Up to $16,100/child tax-free • SS/Medicare exempt <18 • Unemployment exempt <21 • 10% return, 3% inflation assumed

Why family businesses use Tracta

The IRS allows tax benefits when you employ your children — if you follow the rules. Tracta makes compliance effortless.

The Problem

Manual payroll is risky

  • Spreadsheets don't create audit-proof records
  • Easy to miss tax filing deadlines
  • No proper pay stubs or W-2s
  • Risk of IRS disallowing wage deductions
  • Hours spent on compliance research
The Solution

Tracta handles everything

  • FICA tax savings tracking on your dashboard
  • Professional pay stubs for every pay period
  • Tax Vault with audit-ready document storage
  • Year-end checklist with W-2 preview
  • Smart reminders for tax deadlines
  • Automatic W-2, Form 940 & 941 generation
  • State tax forms that claim exemptions online forms miss
  • Timesheet tracking with audit trail
  • Roth IRA contribution tracking

Everything you need to pay your kids properly

From timesheets to tax forms, Tracta gives you the tools to run compliant family payroll.

Tax Vault

Audit-ready document storage. All your pay stubs, W-2s, and tax forms organized and downloadable in one secure place.

Payroll Processing

Run payroll in minutes. We automatically apply the family employment tax exemption and track your savings in real-time.

Year-End Checklist

Annual summary with W-2 preview. See total wages, tax withholdings, and generate year-end tax forms with one click.

Smart Reminders

Never miss a deadline. Get email reminders for quarterly filings, W-2 generation, and other tax obligations.

Timesheet Tracking

Simple time entry with audit trail. Track hours worked and tasks completed for IRS-compliant records.

Roth IRA Tracking

Track your child's earned income toward Roth IRA contributions. Build their retirement savings tax-free.

The tax benefits are significant

Children under 18 working in a parent-owned business are exempt from Social Security and Medicare taxes — a rule designed specifically to encourage family employment.

0%
Social Security & Medicare

Children under 18 are exempt from these payroll taxes — that's 15.3% savings on every dollar

0%
Unemployment Tax

No federal unemployment tax on wages paid to children under 21

$16,100
Tax-Free Earnings

Your child can earn up to the standard deduction with $0 federal income tax (2026)

Simple, transparent pricing

Start with $10 free credit. No credit card required.

$7/month

or $70/year (save 17%)

Everything you need for compliant family payroll

No per-employee feesNo filing feesNo setup fees

Start with free credits:

  1. 1Sign up and get $10 in credits
  2. 2Use all features with no restrictions
  3. 3Add payment method when credits run low
Claim Your $10 Credit

Everything included:

  • Run payroll
  • Pay stub generation
  • W-2, Form 940 & 941
  • FICA savings dashboard
  • Tax Vault (audit-ready storage)
  • Timesheet tracking
  • Year-end checklist
  • Compliance checklist
  • Smart reminders
  • Roth IRA tracking
  • Unlimited employees
  • All 50 states supported

Filing made simple

Tracta prepares everything you need — filing takes minutes, not hours

Year-end checklist

Step-by-step guide walks you through every form and deadline. No guessing what's due when.

Pre-filled form data

W-2s, Form 940, and Form 941 data ready to copy. Just transfer the numbers to your forms.

Smart reminders

Get notified before quarterly and annual deadlines so you never miss a filing date.

Most users complete their quarterly filings in under 10 minutes using Tracta's pre-filled data.

Frequently asked questions

Ready to simplify your family payroll?

Join family business owners who trust Tracta to handle their payroll compliance. Get started with $10 in free credits.