1. Agreement to Terms

By accessing or using Tracta (the "Service"), operated by Tensor LLC, doing business as Tracta ("we," "our," or "us"), you agree to be bound by these Terms of Service ("Terms"). If you do not agree to these Terms, do not use the Service.

We reserve the right to update these Terms at any time. Your continued use of the Service after changes constitutes acceptance of the updated Terms.

2. Description of Service

Tracta is a payroll management platform designed for family businesses. The Service provides:

Timesheet tracking and management
Payroll calculation and processing
Pay stub generation
Tax form generation (W-2, Form 940, Form 941)
Compliance documentation tools
Roth IRA contribution tracking

3. Important Disclaimers

CRITICAL: Tax Estimation Only - Not a Payroll Service

Tracta is NOT a payroll service. We do not:

Withhold or remit taxes on your behalf
Make tax deposits to the IRS or any state agency
File tax returns for you
Guarantee the accuracy of any tax calculations
Provide actual payroll processing services

All tax figures shown are estimates for informational purposes only. YOU are solely responsible for all tax withholding decisions, making timely tax deposits, and filing all required tax returns. Failure to properly withhold and remit taxes can result in substantial penalties and interest from the IRS and state agencies.

FICA Exemption Eligibility - Your Responsibility

Tracta does NOT verify whether your business structure, employment arrangement, or family relationship qualifies for the FICA exemption for family employment under IRC Section 3121(b)(3)(A).

You are solely responsible for determining whether you qualify for this exemption. Eligibility depends on factors including but not limited to: your business entity type (sole proprietorship, partnership, LLC, S-Corp, C-Corp), the child's age, and whether the child is actually employed in a bona fide employment relationship.

Incorrectly claiming the FICA exemption may result in back taxes, penalties, and interest. Consult with a qualified tax professional to determine your eligibility before relying on this exemption.

No IRS Audit Representation or Support

Tracta will not represent you in any IRS audit, examination, inquiry, or correspondence. We will not communicate with the IRS or any tax authority on your behalf.

Records, documents, and forms generated by Tracta are provided for your convenience and may not satisfy IRS documentation requirements for substantiating business deductions, employment relationships, or tax exemptions.

You are solely responsible for responding to all IRS correspondence, maintaining audit-ready records, and proving the legitimacy of your employment arrangements. There is no guarantee that using Tracta or following guidance provided through the Service will prevent an IRS audit or result in a favorable audit outcome.

Not Tax, Legal, or Financial Advice

Information provided through Tracta, including but not limited to tax estimates, compliance checklists, educational resources, and blog content, does NOT constitute tax, legal, accounting, or financial advice. This information is provided for general informational purposes only.

You should consult with qualified tax professionals, attorneys, and financial advisors for advice specific to your situation before making any tax, legal, or financial decisions.

We are not responsible for any decisions you make, actions you take, or consequences that result from your use of information provided by the Service, including but not limited to IRS audits, disallowed deductions, tax penalties, or legal claims.

Tax Calculations and Generated Forms

All tax calculations are estimates based on the information you provide and tax rates in effect at the time of calculation. Tax rates and rules change frequently, and updates to the Service may not be immediate.

Garbage in, garbage out: Errors in the data you enter (including but not limited to wages, hours, SSNs, EINs, addresses, and tax elections) will result in incorrect calculations and forms. You must independently verify all calculations before making tax deposits or filing returns.

Tax forms generated by Tracta (including W-2, Form 940, and Form 941) are provided for informational purposes only to assist you in preparing your tax filings. You must review all generated forms for accuracy before filing. Tracta does not file any forms with the IRS, Social Security Administration, or any state agency on your behalf.

State and Local Tax Compliance

State and local payroll tax requirements vary significantly and change frequently. Tracta may not reflect all state-specific requirements, exemptions, deadlines, or forms.

You are solely responsible for understanding and complying with all applicable state and local tax laws, including state income tax withholding, state unemployment insurance, state disability insurance, and local taxes. Some states do not recognize the federal FICA exemption for family employment.

Employment of Minors

You are solely responsible for complying with all federal and state child labor laws when employing minors, including but not limited to:

Obtaining required work permits or employment certificates
Verifying the child's age with appropriate documentation
Adhering to restrictions on hours worked and types of work
Maintaining required records of minor employment
Paying at least the applicable minimum wage

Tracta does not verify compliance with child labor laws. Violations of child labor laws may result in significant fines and penalties.

Deadline Reminders

Email and in-app deadline reminders are provided as a convenience only and may be delayed, not delivered, or contain inaccurate information due to technical issues, email filtering, or changes in tax deadlines.

You are solely responsible for knowing and meeting all tax filing and deposit deadlines, regardless of whether you receive a reminder from Tracta. Failure to receive a reminder does not excuse late filings or deposits.

Assumption of Risk

By using Tracta, you acknowledge that family employment arrangements carry inherent risks, including potential IRS scrutiny and audits, and you assume full responsibility for ensuring your employment arrangements comply with all applicable laws. You acknowledge that tax laws are complex and subject to change, and that the Service may not reflect the most current legal requirements.

4. Account Registration

To use Tracta, you must create an account. You agree to:

Provide accurate, current, and complete information
Maintain the security of your password and account
Accept responsibility for all activities under your account
Notify us immediately of any unauthorized access
Be at least 18 years old to register an account

5. Subscription and Payment

Signup Credits

New accounts receive free credits to use toward the subscription fee. No credit card is required to sign up. When credits are depleted, you will need to add a payment method to continue using the service.

Paid Subscriptions

After credits are exhausted, continued access requires a paid subscription. Current pricing is $7/month or $70/year. Prices are subject to change with notice.

Billing

Subscriptions are billed in advance on a monthly or annual basis. Payments are processed through Stripe. You authorize us to charge your payment method for all fees incurred.

Cancellation

You may cancel your subscription at any time through the billing settings. Cancellation takes effect at the end of the current billing period. No refunds are provided for partial periods.

Referral Program

You may refer new users using your unique referral code. Both you (the referrer) and the new user (the referee) will receive $7 in account credits when the referee qualifies.

To qualify, the referee must complete all of the following within 45 days of signing up:

Verify their email address (activate account)
Add at least one employer
Run at least one payroll

Referral credits are limited to 12 successful referrals per calendar year. Abuse of the referral program (including self-referrals, fake accounts, or other fraudulent activity) may result in forfeiture of credits and account termination.

6. Your Responsibilities

You are responsible for:

Ensuring the accuracy of all data you enter into Tracta
Complying with all applicable employment, tax, and labor laws
Making all tax withholding decisions and tax deposits
Filing all required tax returns with the IRS and state agencies
Maintaining proper employment documentation (I-9, work permits, etc.)
Keeping your account credentials secure
Using the Service in compliance with all applicable laws

7. Acceptable Use

You agree not to:

Use the Service for any unlawful purpose
Attempt to gain unauthorized access to any part of the Service
Interfere with or disrupt the Service or servers
Upload malicious code or content
Use the Service to transmit spam or unsolicited communications
Resell, sublicense, or provide access to the Service to third parties
Use automated systems to access the Service without permission

8. Intellectual Property

The Service, including all content, features, and functionality, is owned by Tensor LLC, doing business as Tracta, and is protected by copyright, trademark, and other intellectual property laws.

You retain ownership of all data you upload to Tracta. By using the Service, you grant us a limited license to use your data solely to provide the Service to you.

9. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, TRACTA SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO:

Loss of profits, revenue, or data
Tax penalties, interest, or back taxes resulting from errors in tax calculations or incorrect application of tax exemptions
IRS audits, examinations, or inquiries, regardless of outcome
Disallowed deductions or tax positions
Reclassification of workers or employment relationships by the IRS or any state agency
Failure to qualify for FICA, FUTA, or any other tax exemption
Employment law violations, including child labor law violations
Missed tax deadlines, including failure to receive or act on reminders
Costs of professional representation in any audit or legal proceeding
Any other damages arising from use of the Service

YOU EXPRESSLY AGREE THAT YOUR USE OF THE SERVICE IS AT YOUR SOLE RISK. Our total liability for any claims arising from or related to the Service shall not exceed the lesser of (a) the amount you paid for the Service in the 12 months preceding the claim, or (b) $100.

Some jurisdictions do not allow the exclusion of certain warranties or the limitation of liability for incidental or consequential damages. In such jurisdictions, our liability shall be limited to the maximum extent permitted by law.

10. Disclaimer of Warranties

THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED. WE DISCLAIM ALL WARRANTIES, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. WE DO NOT WARRANT THAT THE SERVICE WILL BE UNINTERRUPTED, ERROR-FREE, OR SECURE.

11. Indemnification

You agree to indemnify, defend, and hold harmless Tracta (Tensor LLC), its officers, directors, employees, and agents from any and all claims, damages, losses, liabilities, costs, or expenses (including reasonable attorneys' fees) arising from or related to:

Your use of the Service
Your violation of these Terms
Your violation of any applicable tax, employment, or labor laws
Any inaccurate information you provide through the Service
Your incorrect application of tax exemptions, including the FICA exemption
Any IRS audit, examination, or inquiry related to your tax filings or employment practices
Any claims by employees, family members, or third parties related to your employment practices
Your violation of any rights of a third party

This indemnification obligation shall survive termination of your account and these Terms.

12. Termination and Data Retention

We may suspend or terminate your access to the Service at any time, with or without cause, with or without notice. Upon termination:

Your right to use the Service immediately ceases
You may request a copy of your data within 30 days of termination
We may delete your data after 30 days of termination
Provisions that should survive termination will remain in effect

Data Retention and Your Records

Documents stored in Tracta (including pay stubs, timesheets, and tax forms) are provided for your convenience. You should maintain your own copies of all payroll and tax records.

The IRS requires employers to retain payroll records for at least 4 years after the tax becomes due or is paid, whichever is later. State requirements may be longer. We do not guarantee that records will be available in Tracta for the full retention period required by law.

You may export your data at any time while your account is active. After account termination or cancellation, you have 30 days to request a data export. After 30 days, we may permanently delete your data and will have no obligation to retain or provide it.

13. Governing Law and Dispute Resolution

These Terms shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its conflict of law provisions.

Binding Arbitration: Any dispute, claim, or controversy arising out of or relating to these Terms or the Service shall be resolved by binding arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules. The arbitration shall take place in Delaware, and the arbitrator's decision shall be final and binding.

Class Action Waiver: You agree that any arbitration or proceeding shall be limited to the dispute between us and you individually. To the fullest extent permitted by law, (a) no arbitration or proceeding shall be joined with any other; (b) there is no right or authority for any dispute to be arbitrated or resolved on a class action basis or to utilize class action procedures; and (c) there is no right or authority for any dispute to be brought in a purported representative capacity on behalf of the general public or any other persons.

14. Electronic Communications

By using Tracta, you consent to receiving electronic communications from us. These communications may include notices about your account, transactional information, and other information concerning or related to the Service. You agree that any notices, agreements, disclosures, or other communications that we send to you electronically will satisfy any legal communication requirements, including that such communications be in writing.

15. Severability and Entire Agreement

Severability: If any provision of these Terms is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect.

Entire Agreement: These Terms, together with the Privacy Policy and any other legal notices published by us on the Service, constitute the entire agreement between you and Tracta (Tensor LLC) regarding your use of the Service.

Waiver: Our failure to enforce any right or provision of these Terms will not be considered a waiver of those rights. Any waiver of any provision of these Terms will be effective only if in writing and signed by Tracta (Tensor LLC).

16. Contact Us

If you have questions about these Terms of Service, please contact us:

Email: support@tracta.us
Company: Tracta (Tensor LLC)