The first time employer should apply to the Source Deductions Section of the District Taxation office to obtain an employer's number under which all records will be kept and payments made. Inquiries can be made by telephone or the number and kit can be obtained in person. The family's total income tax bill may be reduced by splitting income among family members. Individuals then become eligible for the retirement and disability benefits provided by the Canada Pension Plan. The family's interest in the farming operation may increase because of the monetary recognition of children's and spouse's efforts.
Children can develop some capital to assist their education, buy a home or to enter the business.
Regular payments of wages to family members can replace such year-end tax reduction strategies as purchasing machinery to claim a depreciation expense. There is no minimum age limit on RRSPs. If the plan is started early in the child's life, funds from tax-sheltered growth in the plan can help provide for the child's education or establishment in business, for example, or may be allowed to grow until retirement. A spouse, while employed in the farm business, who hires someone to look after young children under 14 years old, can deduct child care expenses. Related persons can be hired as child-care givers, provided the connected person is over 18 years of age.