Spouses Salary? 

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For those spouses who have never qualified for their own Social Security benefits it may be wise to consider putting them on the payroll.  Are you reporting any income from outside sources on Schedule C?  Is your wife helping?  Is she  a valid employee? Can you pay her a reasonable salary?  If so, it would be wise to consider setting up a payroll system so that your wife qualifies for SS.  Another huge, huge benefit may come from setting up a business medical plan that pays all employees health insurance premiums and other medical expenses.  The business can then deduct these expenses as a business expense and they are not taxable to the employee.  To quote a recent article “ The incentive to put a spouse on the payroll is now strong. In many businesses, husbands or wives help out. Paying them a salary and setting up a medical plan for employees could save a family a few thousand dollars.

Certain restrictions apply. The spouse must be a bona fide employee paid a reasonable salary. And the medical plan must cover all employees.”