I have a sole proprietorship self-employed business and had my wife and granddaughter.I paid them wages using the SBA EIDL Loan. Do I provide W-2s on those amounts?

[spra8560]

Do I have to list it as income for the business and then have the business deduct employee wages?

[ThomasM125]

The EIDL loan proceeds are not income so you don't need to report it as such on your tax return. You would deduct the payments as wages and you do need to issue W-2 forms. A child under age 18 is not subject to social security or Medicare tax though.