F.A.Q.

	1.	Is the Spousal Employment Contract valid in all 50 states?
	2.	Does the Spousal Employment Contract need to be renewed annually?
	3.	Does the Spousal Employment Contract reduce state taxes, as well as Federal taxes?
	4.	Can the Spousal Employment Contract be used for somebody who is not your spouse?
	5.	Does the Spousal Employment Contract cost a lot of money to implement?
	6.	What is the difference between the Spousal Employment Contract and the fringe benefit plans of large corporations?
	7.	Can the Spousal Employment Contract be used by those individuals operating their business as a C-corporation, S-corporation?
	8.	Can a sole proprietor hire their spouse if the spouse already works somewhere else on a full-time or part-time basis?
	9.	My accountant told me that if I hire my spouse, I will have to pay higher Social Security taxes. Is that true?
	10.	Why is this "Hire Your Spouse using the Spousal Employment Contract" concept of tax reduction so under utilized and not well known, even among accountants and tax professionals?
	11.	What about my current accountant?
	12.	What happens if my spouse and I get divorced?
	13.	Can I just write my own employment contract, or have my accountant or lawyer write me a short, easy contract?
	14.	Why does the contract cost this much?
	15.	How does the Spousal Employment Contract compare to other employee benefit plans?
	16.	I'll ask my accountant about this.
	17.	Does this "Hire Your Spouse" technique really work?
	18.	Will I get in trouble using this Spouse Employment Contract?
	19.	Can the Spousal Employment Contract be used by those individuals operating their business as an LLC?
	20.	Can we use the Spouse Employment Contract retroactively to earlier in this year?          . . . or for last years tax return?

1.	Q:	Is the Spousal Employment Contract valid in all 50 states?
	A:	Yes, the contract is valid in all 50 states, and anywhere that United States Federal income tax laws apply, because it is based on United States Federal income tax law.
2.	Q:	Does the Spousal Employment Contract need to be renewed annually?
	A:	No, it does not need to be renewed annually or ever. The contract is open ended, remaining in force, with no ending date. It may be ended with 15 days written notice from either party. Once it is set up properly, it does not require much attention. However, the tax benefits continue.
3.	Q:	Does the Spousal Employment Contract reduce state taxes, as well as Federal taxes?
	A:	Yes, it reduces taxes on all 4 levels: federal income tax social security tax state income tax local income tax . . . because it increases legitimate business expenses, and lowers net profit before tax.
4.	Q:	Can the Spousal Employment Contract be used for somebody who is not your spouse?
	A:	Yes, it can be used for adult children, where the parent employs the grown child, who possibly is married with kids. It may be used with the business owner's brother or sister, niece or nephew, or a valued and important employee. In any case, the choice of benefits may be used to give extensive (income tax free) fringe benefits compensation.
5.	Q:	Does the Spousal Employment Contract cost a lot of money to implement?
	A:	No, all of the additional employee fringe benefit expenses are the same costs that were previously (and would otherwise be) paid for as personal expenses with more expensive after tax dollars.
6.	Q:	What is the difference between the Spousal Employment Contract and the fringe benefit plans of large corporations?
	A:	The benefit plans of most large corporations give a short list of basic benefits which is designed to control costs. They give the minimum level of benefits they must give to remain competitive and also satisfy and retain employees. The conceptual approach of the Spousal Employment Contract is the exact opposite: to give the maximum tax free benefit package at the highest cost to the employer, to benefit one or a few employees on a small scale, who may be related to the employer. Or, benefits may be increased be in lieu of a raise, to create a win-win situation with a valued key employee.
7.	Q:	Can the Spousal Employment Contract be used by those individuals operating their business as a C-corporation, S-corporation?
	A:	Yes. In addition to those individuals who do business as a sole proprietor and report the income and expenses of their business on Schedule C of their personal Form 1040 income tax return, you may use a separate S-Corporation or C-Corporation Spousal Employment Contract which is designed to function within those specific frameworks.
8.	Q:	Can a sole proprietor hire their spouse if the spouse already works somewhere else on a full or part-time basis?
	A:	Yes, an employed spouse certainly has the right and the ability to work for a self-employed spouse part-time, while holding another job elsewhere on a full- or part-time basis. The truth is that most spouses (and many children) of self-employed businesspeople help in the family business, in a variety of functions, as needed, part-time, without being fairly compensated. The net family income from the business can be substantially increased, simply by lowering the taxes.
9.	Q:	My accountant told me that if I hire my spouse, I will have to pay higher Social Security taxes. Is that true?
	A:	It may be true. However, this short and overly simplistic answer indicates that your accountant is unfamiliar with this area of tax law, and is not qualified to address your concerns adequately. Heeding this advice will cost you thousands of dollars in additional and unnecessary taxes annually. There are many legal loopholes already built in to the tax code, just waiting for you to utilize them. You do not need to wait for politicians to vote for a real tax cut. It's already here, just waiting for you to utilize it! Here is a realistic sample scenario: An employee spouse with a salary of $8,000 annually will pay $1,224 in additional social security taxes (assuming their total wages are below the 1999 Social Security wage base of $72,600). If the employee spouse has already reached the 1999 Social Security wage base of $72,600, then the additional salary would be taxed at 2.9%, or an additional $232. However, and most importantly, if the employer spouse's net income from self-employment is below the 1999 Social Security wage base of $72,600, then the employer spouse would be paying the same social security tax anyway, and this social security payment on behalf of the employee spouse is simply a transfer from one to the other, with no gain or loss, at this point. Whichever of these amounts apply, it is a small price to pay compared to the huge annual tax savings generated by $10,000 to $25,000 in additional business tax deductions of various employee fringe benefits, which are contractual obligations and documented by a properly structured Spousal Employment Contract. Go forth and save!
10.	Q:	Why is this "Hire Your Spouse using the Spousal Employment Contract" concept of tax reduction so under utilized and not well known, even among accountants and tax professionals?
	A:	There are at least 8 reasons: Many "tax preparers" are not really accountants, nor are they CPA's. Their training may be minimal, shallow, and limited to how to fill in the boxes on the tax forms. They are not even required to take 40 hours of continuing education courses annually, as CPA's are required to do. Many CPA's prepare taxes as an accommodation to their clients. However, much of their time and attention is taken up by other parts of their practice, such as write-up work and bank reconciliations, compilations, reviews, audits, financial planning or other specialized areas. They may not be focused entirely in the specialized area of taxation, which is critical to their clients' bottom line. Most tax professionals respond to the current situation which reflects the past, rather than plan and structure the reality of the future. To successfully implement the "Hire Your Spouse" strategy, the IRS requires the use of an employment contract. Most tax professionals are not comfortable writing a detailed employment contract. Writing contracts is usually the domain of lawyers, most of whom are not comfortable with tax law. For both lawyers and accountants, this is a technical area of tax law, requiring careful study of numerous reference sources. Nobody wants to create more paperwork and complexity in an area already overburdened with paperwork and complexity. The Spousal Employment Contract, created by ROBERT GREENE, CPA, CMA, simplifies and streamlines this issue, in plain English, as much as possible. Large corporations have the resources to obtain the best tax lawyers, a minority of whom are well versed in the area of fringe benefit tax law. However, their situations and goals are quite different than those of small business owners. See FAQ #6. Many tax preparers may not even know that this is an area in which they do not have the necessary knowledge. They cannot give correct or accurate tax saving guidance to their clients. Many competent tax professionals may not be comfortable saying "I don't know, this is not my area of expertise." They cannot give correct or accurate tax saving guidance to their clients.
11.	Q:	What about my current accountant?
	A:	Here are 3 choices: Leave your current accountant because you realize that they cost you over $5,000 in additional taxes each year, at least $25,000 in 5 years! Buy the Spousal Employment Contract and engage Robert Greene, CPA, CMA as your as your tax accountant. This is his specific area of technical specialization. Buy the Spousal Employment Contract and use it in conjunction with your current accountant. If there are any questions, you can always call Robert Greene, CPA, CMA for a telephone consultation. Maintain your relationship with your current accountant, for all needs except your tax return. Buy the Spousal Employment Contract. Engage Robert Greene, CPA, CMA as your as your tax accountant, to prepare your tax return only. This is his specific area of technical specialization.
12.	Q:	What happens if my spouse and I get divorced?
	A:	Either party can cancel the contract with 15 days written notice.
13.	Q:	Can I just write my own employment contract, or have my accountant or lawyer write me a short, easy contract?
	A:	The Spousal Employment Contract developed by Robert Greene, with assistance from a tax lawyer, has 16 different categories of tax deductions. Without investing much money and a large amount of expensive professional time, you will not get nearly the same tax saving results. You could easily spend more money on accountants and lawyers, and still not get as large tax deductions as you can get from this contract. Also, this is a highly technical document. Certain elements must be present in the contract to comply with IRS requirements. Without such elements, the tax structure is in danger of being disallowed. Most accountants and lawyers know enough not to "dabble" in unfamiliar, highly technical areas that are not their area of expertise. Anyone who claims they can draft this kind of document in a short period of time is, at best, an optimist.
14.	Q:	Why does the contract cost this much?
	A:	The contract price represents years of research and analysis by CPA accountants, tax specialists, lawyers, etc. This level of knowledge and expertise should not be undervalued. In fact, this is not an "expensive" product at all. The money you will save in the first 3 months of use will more than pay for the SEC. Many people reduce their quarterly estimated tax payment by $1,000 the quarter they establish the Spousal Employment Contract. It saves you much more money than it costs. Like any good investment, it makes money for you, year after year.
15.	Q:	How does the Spousal Employment Contract compare to other employee benefit plans?
	A:	With the Spousal Employment Contract: There is no monthly fee, There is no annual fee, There is no renewal fee, There is no organization to join, There is no junk mail to throw out, There are substantially more tax deductions to use, There are substantially more thousands of dollars deducted, You will be using a more comprehensive employee benefits program, rather than merely a simple medical benefits plan. You will reduce your taxes significantly more than with any other type of plan. Remember, this contract has 16 different categories of deductions! No other product can make this claim!
16.	Q:	I'll ask my accountant about this.
	A:	How long have you had your present accountant? 5, 10, 20 years? Why do you think s/he has never mentioned any of these ideas to you? Maybe, because they do not know enough about this specific issue? So how can they give you an informed professional opinion? And is it really your job to educate your accountant? Anyway, who is carrying the heavy burden of your taxes on their back? Your accountant or you?
17.	Q:	Does this "Hire Your Spouse" technique really work?
	A:	Click here to read the independent opinion of a senior IRS official.
18.	Q:	Will I get in trouble using this Spouse Employment Contract?
	A:	Click here to read the independent opinion of a senior IRS official.
19.	Q:	Can the Spousal Employment Contract be used by those individuals operating their business as an LLC?
	A:	Yes. If the LLC is being taxed as a C-corporation or S-corporation, you may utilize a specific Spousal Employment Contract designed for this purpose.
20.	Q:	Can we use the Spouse Employment Contract retroactively to earlier in this year?         . . .  or for last years tax return?
	A:	Unfortunately, employment status can NOT be retroactive to any earlier than the current calendar quarter, because federal quarterly employment tax reports clearly show who is formally on your payroll for each calendar quarter. Rather than waiting and missing out on these valuable deductions, it is much more advantageous to start promptly to utilize the contract for great tax savings now. Also, besides the salary issue, in earlier periods, you were not taking advantage of all available deductions because you did not know about them. Now is the time to arrange your tax saving strategy for this year, before it is too late! You will also be set to benefit with lower taxes for the next full year, and beyond.
CONTACT:    Robert J. Greene    Certified Public Accountant    Certified Management Accountant    Tax Specialist POSTAL MAIL:    152 Deer Ridge Drive    Staatsburg, New York 12580-5616 OFFICES IN:    Manhattan, NY    Garden City, Long Island, NY    Dutchess County, NY PHONE:    Phone: (845) 889-4439    Phone: (800) 834-3285    Fax: (845) 889-8161 EMAIL:    cpa1@hireyourspouse.com HOME | SUMMARY | FAQ | PRESS CENTER | ARTICLES ROBERT GREENE, CPA,CMA | TESTIMONIALS FREE TAX AIDS | CONTACT | ORDER READERS' E-MAIL | GUARANTEE http://www.hireyourspouse.com cpa1@hireyourspouse.com Content © 1999, Robert J. Greene, All Rights Reserved This site is maintained by Compusmart Computer Consultants www.compusmartcc.com