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1 Replies Last post: Jun 4, 2009 6:56 PM by Santa Fe CPA

Paying Social Security to wife as employee

Jun 4, 2009 1:43 PM

Click to view Senior's profile Start-up Senior 1 posts since
Jun 4, 2009
I am considering starting up a single owner, small business conducting outdoor adventures for seniors. I wish to have my wife as an employee and to pay her social security.
First is this legal? Second, how would I go about doing this? Third, What do I need to do to pay the State and Fed. taxes?
Any help would be appreciated.
Thanks,
Ed
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Click to view Santa Fe CPA's profile Mogul Santa Fe CPA 67 posts since
Oct 10, 2007
1. Re: Paying Social Security to wife as employee Jun 4, 2009 6:56 PM
Hello there Senior.

There are multiple issues implicit in your set-up here.
First, is liability, you should form an LLC or S-Corporation (Secretary of State) to shelter your personal assets as much as possible.
Once that is done you then must obtain Federal (Form SS-4)and State Employer ID (see your State Revenue Offices) numbers and tax accounts, don't forget to check on unemployment taxes and worker's compensation insurance.
Buy a Corporate Record Book from and office supply store and complete all the administrative legal documents. An attorney should be consulted. Pay him or her the fee, it will save you many headaches. Also hire an accountant use him or her as an advisor.
Find a payroll service to handle your wife's salary. This will insure your compliance with all the employment related tax codes.
With your wife as an employee, you can buy health and accident insurance for her and put yuorself on the policy as an additional insured..
Work up a condensed business plan to identify your target market customers and where they are located and do some financial analysis to budget income and expense. Don't forget to plan advertising and marketing.
Make a connection with a travel agency to handle the logistics.
Good luck

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