I paid my son to help with home biz; I have 2 questions regarding tax filing...?

My son is 15 years old and I have paid him on occasion to help out with our home biz. I have never deducted any tax or EI or CPP from his payments. How would I claim this as an expense on my taxes? (My biz is not incorporated and I file my business expenses on my personal return)





Also, is my son required to complete a tax return? He has not held a regular job, only what I paid him to help with the business.

I paid my son to help with home biz; I have 2 questions regarding tax filing...?
Hello,





First I'm assuming that it's a relatively small amount earned, say under $3,500?





Deduct the wages paid to your son as Subcontracts on the T2124. It's in the "Calculation of cost of goods sold" section of the form. As he's under 18 he's CPP exempt, and as he's the son of the business owner he's also EI exempt, so even if CRA looked at it for some reason there should be no problem.





Your son should complete a tax return if he has any earnings. Even if there are no taxes involved (Earned less then $8,839) the earnings will begin to generate RRSP contribution room which could be useful later in life. Claim the amount you paid him on Line 104 of the T1 jacket.





Cheers.
Reply:try the IRS website