Should roofers put their kids on payroll?

By Exit Stage Left Advisors.

Done correctly, hiring your children can be a smart way to reduce taxes while creating opportunities for your family.

If you own a roofing company and have kids, here’s a question worth asking: Should they be on payroll?

Here at Exit Stage Left Advisors, we advise that for many business owners, the answer is surprisingly… yes.

When done correctly, hiring your children can create legitimate tax savings while also teaching them responsibility, work ethic and basic business skills. And no, this isn’t some shady loophole.

The IRS allows business owners to hire their children for legitimate work. In fact, for last year’s tax season, your child can potentially earn up to the standard deduction amount and owe little to no federal income tax.

That means you may be able to:

• Shift income into a lower tax bracket 
• Deduct wages paid to your child as a business expense 
• Potentially avoid FICA taxes for children under 18 in certain business structures 
• Help fund college savings, Roth IRAs or other long-term investments 

But before you start handing out paychecks to your eight-year-old “vice president of office vibes,” there are rules.

The IRS expects your child to be a legitimate employee doing real work that benefits the business. That could include:

• Answering phones 
• Filing paperwork 
• Cleaning the office 
• Helping with social media or marketing 
• Organizing inventory or supplies 

The key is documentation and reasonable compensation. If you’d pay another employee $18 an hour for the same work, pay your child similarly. Track hours. Use payroll. Avoid cash payments.

Done correctly, this can be a smart way to reduce taxes while creating opportunities for your family.

But there’s also a bigger picture.

Many roofing owners we connect with overlook strategies that help them keep more money vs giving it to Uncle Sam. Smart tax planning, financial organization and clean records don’t just help today; they also make your business significantly more attractive if you ever decide to sell.

At Exit Stage Left Advisors, we help roofing owners position their businesses for long-term value creation and successful exits. In 2025, we successfully sold eight roofing companies and are currently leading 10 more in the sale of their business. 

To learn more about selling your roofing business, visit www.wesellroofers.com or email alex@esladvisors.com.