If you have trouble finding workers with the dedication and loyalty you need, there’s a solution that can offer the best of both worlds: hiring your spouse. You get an employee who you know truly cares about your business, and the money you pay your spouse stays “all in the family.”
But before you broach the idea to your spouse, there are some important factors to consider.
How will working together affect your relationship? Some spouses can work together all day long and enjoy a happy marriage after hours, while others find business stresses spilling over into their personal lives. Clearly define roles within the business so each of you knows what he or she is responsible for. Also set boundaries outside the business, such as not discussing business over dinner or taking regular weekends off.
What does your spouse expect from the job? Perhaps your spouse expects to work closely together and spend lots of time with you, while you expect to scarcely see each other because you’ll both be so busy handling your separate duties. Clarify your expectations from the beginning and make sure you are both on the same page. Is this a short-term arrangement or a permanent move? Will your spouse need to work for free if money is tight?
How will a spouse working in the business affect your company’s dynamic? When you bring a family member into the business, nonfamily employees may assume your spouse will get favored treatment, that they will be passed over for promotions or that they can’t be honest with you about problems with your spouse. Discuss these issues openly to ease their worries.
What are the legal and tax implications? The way that you report and pay taxes for a spouse in the business will vary depending on whether your spouse is considered an employee or partner/co-owner. If the spouse is an employee, you need to withhold appropriate taxes from his or her pay just as with any employee. If your spouse has an equal say in the business and/or contributes capital, he or she is considered a partner, which affects your business’s tax reporting and payments. (See this IRS article for more information.) To avoid unpleasant surprises, consult your attorney and accountant regarding the tax and legal implications of bringing a spouse on board.Tags: business tips, Entrepreneur, Hiring Tips, Startup, Tuesday Tip