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Granddaughter caring for wife can I write off her pay?

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Yes you can. Talk with your tax professional to make sure you are handling the payment accordingly and what you need to do to ensure no problems, like a doctor's prescription for care or whatever your personal situation requires.
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This is a question for your tax man. Just my opinion, not unless you make payroll deductions. I say this because, I was able to deduct for Daycare because I had a tax ID# for the Daycare. Not sure if you can do a 1099 but then that affects your granddaughter when she pays her yearly taxes. She will need to declare that money and pay taxes accordingly.
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Tax deductions can be made for the medical care portion such as someone who lives in MC or LTC. If you are asking about custodial care in your home, then no.
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