Yes, you can hire family members. However, there are some things to keep in mind. First, every employee should have a job description, and this is especially true for family members. If you are hiring your children, make sure that the tasks you want them to do are age-appropriate. Always be clear about the expectations of the job, the hours, the rate of pay, etc. Have these policies written out so that everyone is aware of the expectations. When you mix family labor with non-family labor, it is easy to set up the appearance that not everyone is being treated the same way. Family members may be quick to assume that you are using the relationship to take advantage of them. They may think that you expect more from them, are more critical, and are less willing to listen. On the other hand, non-family employees will likely be thinking that the relatives are getting a better deal than they are. When you mix family and non-family labor, make sure that the rules and policies are clear so that everyone understands what to expect.
For the tax implications of hiring family members, consult your tax preparer or the Internal Revenue Service Web site at IRS.gov.
