[koheripbal]

Again, a lot of these things are pretty common in business.

My Dad has a business, and pays me a consultancy fee. I pay consultancy fees to my wife.

None of this is unusual for a family business.

[implements]

Do the regulations require that such fees must be ‘honest’ ie be for actual work and proportional to the market value of that work?

Are the fees declared to the IRS and all relevant taxes paid?

No need to answer (it’s your private business), but just because petty abuses are common and rarely caught doesn’t mean they’re legitimate business practices.

[dathanb82]

It is unusual to pay your children as regular employees and also pay them as consultants, tho.

[fjdjsmsm]

If they are employees, and you are doing that, it is actually illegal.

You are either a consultant, or an employee.

[digitaltrees]

You can’t do that while also being an employee.