vic said:
I don't have to pay all of those taxes because I am related to my husband. Besides, all those income taxes are a wash since they end up on the same return - so it does not make much of a difference at the end. It is no problem to pay him 24 hours at minimum wage for yes - a BS job - title. I don't see any reason why I can not be flexible in creating a job for him since he will be leaving his current place of employment. I will be meeting with the agent to go over all of it. I have not heard of 24 hour/week but we can also arrange for that as needed. I guess every state has its own particulars.
Vicky
Well, the "catch" is that employers have to "match" the social security taxes that the "employer" pays out of his income taxes. So, even though you are related and all "income" pays the same taxes, as an employer, you will have to pay the employer's share of the social security taxes on your "employee", and that will be on top of what you are used to paying. I think it's about 7% of income....Once people realize this, they usually decide not to do the "group of two". At least, that has been my experience....unless you have no other choice.
Secondly, in order to prove employment in the State of Colorado, you have to show at least one quarter of unemployment insurance tax payments (and they can ask for two) or...sometimes, if you can show a minimum of 8 weeks of payroll, they will sometimes let you get by with that as well. ...Don't know how it will be in Texas, but I imagine the insurance underwriters will want to see some kind of proof of employment.
Also, my guess is that you are going to have "sticker shock" when you see the group insurance rates. I am surprised that in Texas, individual insurance comes with maternity, while group insurance does not. In Colorado, it's the other way around..In fact, I'm certain that it is a Federal Mandate that all group insurance plans, small or large, must include maternity coverage, so I think you might be misinformed on that (...although it is possible that some carriers may allow you to opt out of the maternity coverage, but I don't think it will make that much difference in savings in the group market)......And small group insurance tends to be much more expensive than individual insurance, mostly because it is guaranteed issue, so adverse selection (buying the insurance AFTER it is needed) takes it's toll on the rates. This is because the general "pool" of members in the small group market tend to be "unhealthier" than the pool of members in the "individual" insurance markets.
Regardless, I wish you luck and hope it all works out for you.
