Does your business need trustworthy and reliable employees? You may not have to look any further than across the dinner table.
Strategy: Hire your spouse to work for your company as an official employee. Why put your spouse on the ? Because you can gain six tax benefits:
1. Build up tax-favored funds for retirement
If you meet the tax-law requirements, your company can deduct contributions made to a qualified retirement plan on your spouse’s behalf. The annual limits are quite generous. For instance, if your company has a defined contribution plan, you can deduct contributions up to 25% of compensation or $45,000, whichever is less, for 2007. The contributions accumulate tax deferred until withdrawn.
With a 401(k) plan, another dollar limit applies: Your spouse can defer up to $15,500 to the plan in 2007 (plus an extra $5,000 if he or she is age 50 or older). Your company can match those contributions who...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- State settles with feds over police promotion tests
- In hiring, don't overvalue interview skills; courts question subjective decision-making
- Double dipping? Severance payments and unemployment compensation
- Clients must repay taxes after payroll company commits fraud