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Want 6 quick tax perks? Hire ‘from within’

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in Employee Benefits Program,Hiring,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

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 payroll? 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 The contributions accumulate tax deferred until withdrawn.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)

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