Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Boost Your Tax Savings by Hiring Your Spouse! #YearEndTaxTips

Name: Painting Business Owners: Boost Your Tax Savings by Hiring Your Spouse! #YearEndTaxTips
Uploaded: 2024-12-13T14:14:00+00:00
Duration: 37 s
Channel: Daniel Honan
Description: In this segment, the presenter advises painting‑business owners to consider adding their spouse to the payroll only in two specific situations: (1) to…

13 Dec 2024 · 1 min

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In this segment, the presenter advises painting‑business owners to consider adding their spouse to the payroll only in two specific situations: (1) to fund the spouse’s own retirement account, such as a 401(k), by paying them wages for part‑time work, and (2) to enable the spouse to receive tax‑free reimbursements for substantial medical expenses through a Health Reimbursement Arrangement (HRA). The speaker emphasizes that these are the only scenarios where employing a spouse makes sense for tax‑saving purposes, framing the decision as a strategic, business‑related move rather than a casual employment choice.

Chapters

Now that you've paid your kids, how about your spouse? Pay your spouse, but only if you need to fund an additional retirement account or if you need to write off medical expenses with an HRA. Those are the only two times I want to recommend putting your spouse on payroll. This is like a really important reason for them to be heavily involved in the business. But if they want to come and work part-time and you're going to take their wages and put it into their own 401(k), that could be a good reason. Or if you have heavy medical expenses and you've gone through the work to set set up a health reimbursement arrangement, it might make sense for your spouse to be an employee to take advantage of that benefit.