You are better off having your husband work for you, but not hire him as an employee. That way, no paperwork and no income for him.
The only situation where it does make sense to hire your husband is if your family has a lot of medical expenses that are not covered by insurance (insurance premiums he pays, copays, drugs, etc.). In that case you can set up a medical reimbursement plan. Talk to a tax preparer about this.
I've written an article about hiring family members on my blog:
http://www.tomcopelandblog.com/2011/...ve-or-not.html
By the way, you should have treated your mother as your employee and not issued a Form 1099. You should have withheld social security taxes, paid federal and state unemployment taxes and purchased workers comp.