Hiring family members to work in your small business, especially when it is growing quickly, may seem like a perfect solution. However, there are some legal, tax, and operational issues to consider. Additionally, even though hiring family members is generally legal, it may not always be advisable. If not handled properly, it can lead to claims of nepotism—showing favoritism to a relative by giving them key jobs or higher salaries—and employee disengagement.
Read further for what you need to know about hiring family members.
