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Husband/wife partnership - add to payroll?

11/6/09 2:01 PM
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I have a husband/wife partnership and we will be hiring 2 employees. Do I need to add both my husband and myself to the payroll?

 
 
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11/17/09 1:25 PM

Depends on what tax forms you are filing for the business.  If you are filing as a partnership, then no (because partners don't get payroll, they get taxed on the profits of the company as self-employed income).  If you are filing a form 1120S (you made the election to be taxed as a Special Corporation), then yes, you would add yourselves to the payroll. 

I suggest calling your tax advisor to get their advice as there are many issues to consider with small business owners and payroll.

Hope this helped.  If so, please mark as solved.  Thanks.

 
 
 
 
 
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