Dear June,
My husband is a sole proprietor with an average yearly income of $80k. I am age 58, retired, and drawing a pension from my former employer and from my 401(k). My husband will be 62 in September and would like to file for social security but his income is too high.
Would there be any advantage to his hiring me (I am very active in his business) as an employee and paying me a salary thereby decreasing his income so that he is eligible for his full social security benefit? If so, how would be go about implementing?
Renee
Dear Renee,
Yes, there is an advantage to your husband hiring you. Of course it must be legitimate and not just a clever tax scheme.
He may hire you, give you full medical benefits as well as insurance and a pensions. All costs would be deducted from his business income, possibly reducing his income enough to not affect his social security payments.
You would start by setting up a payroll. Instructions for that are beyond the scope of an email.
Best,
June
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