Good news: Business is booming and you’re as busy as ever. However, you may suddenly find yourself short-staffed in the office. In the past, you may have asked your kids to pitch in, but now they’re back at school or out on their own. Fortunately, your spouse has some free time and knows the operation inside-out.
Strategy: Hire your spouse to help out. In fact, you should make your spouse an official company “employee,” with all that entails, including filing all the proper paperwork with the IRS.
Of course, your spouse will owe income and payroll taxes on wages, just like any other new hire, but he or she is also in line for the usual. Here are five ways to sweeten the pot.
1. Build a retirement nest egg. As long as certain requirements are met, an employer can deduct the full amount of contributions made to a qualified retirement on behalf of an employee-spouse. For instance, if your company has a profit...(register to read more)