Here how my accountant set it up 15 years ago.
In my name is a Sched C, all income and expenses are recorded there, included
is a deduction for contract labor. The contract labor amount is then put on a second
Sched C under her name. Business income is split 50/50. This is all wrapped up and we file MFJ.
I've been told other tax preparers would do it different.
I thought I retired, but it turns out over the complete year I'll average
about 20 hours a week. Wife needs help to run business especially in summer.
Now that I'm working less, are we required to split income differently?
Hours are split 70+hrs and 20hrs.
Second question, is there an easy way to hire a single employee re: all the technical details?
Workman's comp, tax witholding, posters that must be put on walls, etc.
I have tried companies that hire employees and then lease the worker to you,
you pay the company, and the company pays their employee.
They push me out when they find I only want one employee.