“Do you feel that you pay too much in taxes?”
Most of our reps address the issue of taxes with their clients. If you aren’t then we need to talk. We have some excellent programs and training to teach you how to d o this. But those of you who do discuss taxes with your clients know that none of our clients would answer the above question with a “NO” answer. All of our clients feel they pay too much in taxes. But what about you? Do you pay too much in taxes? If you answer yes then here is an idea for you- add your spouse to the payroll.
Does your business need a trustworthy and reliable employee? Who could be more trustworthy than your spouse? If you make him/her an official employee you can take advantage of several tax benefits to help reduce your taxes.
- Build up tax-favored funds for retirement – If you meet the tax law requirements, your business can deduct contributions made to a qualified plan. If you add your spouse to the payroll this deduction can be used for her as well. The annual limits are quite generous. For a defined contribution plan, you can deduct up to 25% of compensation or $53,000, whichever is less.
- Get more tax mileage from business trips – Generally, you can’t deduct the travel expenses attributable to your spouse if he or she goes with you on a business excursion. However, if your wife is a bona fide company employee, and goes for a valid business reason, you may deduct her travel costs.
- Cure health insurance coverage issues If you are like us, your health plan most likely covers more for the employee than it does for the spouse. Therefore, if you hire your spouse it would shift that extra cost from you to the business. Typically your company can deduct your spouse’s full health insurance cost.