Can I give a wage to my dependant if they assist me in my business?
Yes, if your children are active in your business we can declare wages to them. This allows your business to record wage expenses while at the same time start building RRSP contribution room for your child.
Wages to children are often scrutinized by Canada Revenue Agency in the event of an audit. All amounts declared to your children must be reasonable, reported on their tax returns and paid in full.
Please contact us to discuss reasonable amounts and tax planning for you and your children.