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family member as employee

Discussion in 'Managing Your Business' started by john, Dec 18, 2014.

  1. john

    john New Member

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    Do I have to pay the minimum wage to a family member? I am thinking about cutting back on some costs by employing my wife. Has anyone done this?
  2. SpicAndSpanShawn

    SpicAndSpanShawn Member

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    I know a friend that has hired a family member and it was pretty fine with it, though when the family member has shown himself that he is not able to handle the job as it was expected out of him the friend didn't have the heart to fire him and his business went bad. So just keep in mind that you should consider the family member as same as any other employee
  3. Brandy

    Brandy Member

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    Well if it's a family member maybe go a bit easier but since money doesn't go on trees you can't go too easy on them to make your business much worse, I've worked with my brother before and it turned out fine because there were things we both agreed on beforehand
  4. SpicAndSpanShawn

    SpicAndSpanShawn Member

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    well that's the point, don't do that because it's business. You treat them normally
  5. Ifsg

    Ifsg New Member

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    You want to actually hire her, correct? We are not just asking the wife to help out for a bit and I will pay you back with my undying gratitude and appreciation, you intend to file the new hire paperwork, cut her a check and deduct the taxes?

    If yes, then yes. Yes, you must pay her minimum wage and you must pay payroll taxes.

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