This is a YouTube video titled "Hire Your Kids, Not Your Spouse #doctor #physicianfinance #personalfinance #money" created in May 2024. The content is a monologue or talk discussing the financial and tax implications of hiring family members in a business, specifically advising that hiring children can be beneficial for tax reasons, while hiring a spouse usually is not advantageous.
There's this weird idea out there that somehow you're going to save a whole bunch of money by hiring your spouse. It's probably a bad idea. Now keep in mind hiring your kids is usually a good idea. If your business is not a corporation and the only owners are their parents and their minors, you don't have to pay payroll taxes for them, they probably won't earn enough or that they have to pay any income tax and you can put everything they earn into a Roth ira. That's a pretty slick move. Hiring your spouse. Usually not the case. Now if you need your spouse to work in the business, fine, hire them. But don't expect it to be some sort of huge tax break. In general, the math does not work out. Don't hire your spouse just to get an additional 401k contribution. It just costs you too much in Social Security tax to be worth it. So hire your kids, not your spouse. That's the bottom line if you're looking for a tax break.
Physician Takes a Youth Sports Team to the State Championship - MtoM Podcast #236
