Tax Dos and Don'ts of hiring your child

Does your child work in your family business? Here's a tip: don't pay the wages in pizza if you want to pass muster with the IRS.

Article here. 

The story is based on a parent's attempt to deduct her children's wages as a business expense.

Employing your minor children is legal, as is deducting their pay as a business expense. But the judge found fault with the parent's method of paying her children, which was often not in cash. The decision says she used most of the children's wages to buy either meals, often of pizza, or tutoring services, things that a parent would

typically pay for.