Episode 45. How to Hire Your Spouse Tax Strategy

Interested in Tax Strategy for your Business? Send us a message with your email address and we’ll help you get started!Today I reveal the hiring your spouse tax strategy that means my client is estimated to save $338,000 in taxes. Most business owners are doing this completely wrong - either overpaying their spouse and crushing themselves with payroll taxes, or missing out on massive tax deductions by not structuring it correctly. In this podcast, I'll show you exactly how to hire your spouse on payroll, what to pay them, what NOT to pay them, and the critical tax mistakes that could trigger an IRS audit.Here's what most business owners get wrong about hiring their spouse. They think throwing their spouse on payroll automatically saves taxes, but without proper tax planning, you're just creating unnecessary payroll taxes. Your spouse needs to actually work in the business and get paid a reasonable wage for their actual job - not some inflated salary that raises red flags. I see business owners overpaying their non-working spouse thinking they're being smart, when they're actually overpaying tens of thousands in Social Security and Medicare taxes for zero benefit.We’ll debunk the biggest tax myths about such a  tax strategy. Hiring your spouse just to maximize Social Security benefits? Usually a terrible idea that costs more taxes than it saves. The real power comes from understanding when hiring your spouse makes sense and when it doesn't. Sometimes the best tax strategy is NOT hiring them at all, which is exactly what we determined for that client who's estimated to save $338,000 on taxes. If your spouse naturally works in your business or you're considering bringing them on, this video shows you the right way to structure it for maximum tax savings while staying completely compliant with IRS regulations. Work with a qualified tax advisor before implementing any spouse employment strategy to make sure it fits your specific tax situation.🆓  Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know:   https://7taxwriteoffs.com/?el=podcast&htrafficsource=buzzsprout*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your attorney, accountant, tax preparer, and/or other advisor regarding your specific situation or your client’s specific situation. The information and all accompanying material are for your use and convenience only.