To pay your spouse, or not to pay your spouse. That is the question.

If you operate your business as a proprietorship and hire your spouse as an employee…

Should you pay W-2 wages to your spouse to make sure that she or he is a bona fide employee?

Can you give your spouse a nice fringe benefit by establishing a Section 105 medical reimbursement plan?

Can your Section 105 plan be the sole source of your spouse’s remuneration?

These are important questions that deserve thoughtful answers. And you’ll get them when you read my new article titled Tax Tips: Is a W-2 Wage Needed to Create an Employee-Spouse 105 Plan?

Three ways our fact-filled article can help you:

1. We’ll tell you what the IRS’s litigation settlement guidelines have to say. Uncle Sam’s bottom line is that you don’t have to pay your spouse W-2 wages if certain conditions are met. We’ll tell you what they are when you read the full article.
2. You’ll learn about the significance of the “Speltz” decision. In this important case, the IRS argued that the court should disallow Mrs. Speltz’s 105 plan because she didn’t pay any W-2 wages to her husband. The good news? Mrs. Speltz won her case We’ll tell you what this means to you when you read the full article.
3. You’ll learn what the IRS has planned for you in the future. In its future guidance, the IRS indicated that it might require the filing of W-2s down the road. Uncle Sam may want you to report the value of your small-employer-provided medical plan. To find out what may lie ahead, read the full article.