| You can legally hire members of your family to work | | | | more than you would have to pay a non-family |
| for you and make them a tax deduction. He or she | | | | member to do that same job. The pay can't be |
| must provide a value to your business for you to | | | | considered disproportionate to the work. |
| justify their hiring. Hiring your husband or wife could also | | | | If the person performing the job were not a member |
| make some everyday expenses tax-deductible. Life | | | | of your family, you would have to pay them at least |
| insurance payments, health insurance payments, tuition | | | | minimum wage. So, it would make sense to pay |
| for education related to work, and work travel and | | | | minimum wage to them. Salaries are tax-deductible to |
| entertainment expenses are tax deductible. | | | | you, as an employer, and taxable to your family |
| You can hire your kids or grand-kids to work for your | | | | members as income. |
| business part time doing jobs like cleaning the office, | | | | The pay to your family members must be periodic, at |
| maintaining the work vehicle, addressing envelopes, | | | | least once a month. You lose any tax benefit if you |
| answering the phone, tracking inventory, making | | | | pay wages to a family member whose tax bracket is |
| deliveries, data entry, or just running errands. | | | | higher than yours. Pay by check, not in cash. Do not |
| The money you pay them becomes a tax deduction, | | | | treat the family members pay any differently than any |
| even if it becomes their allowance or is deposited into | | | | other current employee. |
| a savings account. In this manner, money you might | | | | Of course, this works best if you are running your |
| ordinarily just be handing to your children or squirreling | | | | business from your home, as home business tax |
| away for them becomes a tax deduction for you. | | | | deductions become applicable as well. In this scenario, |
| Of course any salary you pay to any member of your | | | | along with your family members' earnings becoming |
| family must be recorded on their own income tax | | | | tax deductible, many costs of the daily operation of |
| return. However, you can pay out up to $7,756 | | | | your house like electricity and heating could qualify. |
| annually and not take any tax deductions from their | | | | Check on all the deductions available to you if you |
| pay. | | | | combine hiring family members with working from |
| Of course, they have to work, like any other | | | | home. There is a lot of tax benefit to running your |
| employee. You can pay a deductible salary to a | | | | business this way. |
| member of your family, as long as it is not substantially | | | | |