Should you employ your wife?

Hiring your spouse to work as an employee in your business can save you big on taxes. The savings can be particularly great if you are a sole proprietor or have a single-member LLC taxed as a sole proprietorship or as a partnership (as long as your spouse is not a partner).

Do companies hire spouses?

But arbitrators and courts agree that companies have no duty to hire the spouse of a current worker in states where it is legal to discriminate by marital status. Even among companies without anti-spouse rules, there is general agreement that one spouse should not supervise another.

Can I put my wife on the payroll?

If you decide to put your spouse on the payroll as an employee, you must treat him or her as an employee in every way: Make all required deductions and withholding from your spouse’s pay, including withholding federal income tax and making FICA deductions.

Can a company be considered an independent contractor?

Just because an individual has incorporated does not automatically establish independent contractor status, though. Government agencies are more concerned with the actual working relationship than official paperwork. However, it can be evidence that the IC is actually running an independent business.

What are the sample clauses for independent contractors?

Independent Contractor Relationship Sample Clauses. Independent Contractor Relationship . The relationship of the Parties hereunder is that of independent contractors, and nothing in this Agreement is intended to, or shall be construed to, create a partnership, agency, joint venture, employment or similar relationship.

How to avoid misclassification as an independent contractor?

To learn more, see our article on how government agencies determine independent contractor status. One way that you can lessen the likelihood of independent contractor misclassification is to hire ICs who have incorporated their own businesses, rather than those who operate as sole proprietors or partners in a partnership.

What can I claim on my taxes as an independent contractor?

Deductions lower your taxable income for the year. Independent contractors claim them as business expenses on their taxes. Depending on the kind of business you own, your deductible expenses might include: Independent contractors can also claim a deduction for health insurance premiums they pay out of pocket.