I have a side-business that is doing not too bad at all. Both me and DH also have a regular cube farm job. I can already see a nice tax bill at the end of the year coming my way and I would like to trim that a little.
I am just under the limit for social security/medicare. DH is above it. Can I employ DH for most of the income and cut out all taxes except for federal tax? Or does the limit for social security/medicare only count for the employee and the employer still has to pay it? I am a sole proprietor (not going to change that) and have a EIN to employ DH if needed. The IRS just send me insane amounts of unsollicited paperwork associated with the EIN and I can't read it all.
I would like to pay DH one check at the end of the year, no other hassles.
Does it work that way and how much of a hassle is it?
Vicky
I am just under the limit for social security/medicare. DH is above it. Can I employ DH for most of the income and cut out all taxes except for federal tax? Or does the limit for social security/medicare only count for the employee and the employer still has to pay it? I am a sole proprietor (not going to change that) and have a EIN to employ DH if needed. The IRS just send me insane amounts of unsollicited paperwork associated with the EIN and I can't read it all.
I would like to pay DH one check at the end of the year, no other hassles.
Does it work that way and how much of a hassle is it?
Vicky