Work is usually a “family affair” for small business owners. Typically, your spouse will pitch in whenever and wherever help is needed. This is particularly true in the summer months when other employees take their vacation leave.
Strategy: Hire your spouse. It should be more than an informal arrangement. Officially put your spouse on the company payroll.
If you employ a previously unemployed spouse, your company may be eligible for new tax breaks under the Hiring Incentives for Restoring Employment (HIRE) Act (see box below). And, even if the company doesn’t qualify for the HIRE breaks, there are at least six potential tax benefits for the taking.
1. Build up tax-favored funds for retirement. As long as the tax-law requirements are met, an employer can deduct the full amount of the contributions to a qualified retirement plan made on behalf of a spouse. For instance, if your company provides a defined contribution plan to e...(register to read more)