Over at the Evergreen Small Business blog, an important question:
Is it smart to hire your children as employees, especially for the summer? Particularly for tax purposes.

The short answer is yes.  But you have to follow this guide:

In other words, the amount you pay your child or grandchildren or whatever needs to be reasonable.

Just to make this point, you writing the check doesn’t automatically create a deduction. The deduction only works if you’re paying someone a reasonable
wage given the job they’re doing for your business.

Read more over at the blog.