Should my husband be paid as an employee?

0
Adam&Jessica
Dec 30, 2016 01:03 PM 0 Answers
Member Since Dec 2016
Subscribed Subscribe Not subscribe
Flag(0)
133 viewsPayroll Taxes
0
0
Adam&Jessica
Dec 30, 2016 01:03 PM 0 Answers
Member Since Dec 2016
Subscribed Subscribe Not subscribe
Flag(0)

AnsPress shortcode cannot be nested.

0 Subscribers
Submit Answer
Please login to submit answer.
0 Answers

Answered question
0

All monies earned by the sole proprietor and all expenses are listed on his schedule C. Any money you take out of the business is a draw. You cannot deduct the expenses for yourself. You may want to form a corporation or a limited liability company if applicable based upon your profession (Some States do not allow you to become an LLC for various occupations). By forming a corporation you protect your personal assets. You can form a one person corporation and be an employee. As an employee you pay yourself a fair salary which is subject to social security and other payroll taxes. Other profits that are distributed are dividends. Dividends are not subject to social security and payroll taxes. In a sole proprietorship those profits are subject to the self-employment tax .

Answered question

Categories

0 Subscribers
Submit Answer
Please login to submit answer.
0 Answers