First Employee
“I want to hire my spouse as a W-2 employee to maximize our retirement contributions, does this trigger any special IRS reporting requirements?”
Hiring a spouse as a W-2 employee can raise several tax and payroll considerations, especially when the goal is to support retirement contributions. The reporting picture often depends on how the spouse is paid, whether the work is bona fide and documented, and how the business handles payroll records, withholding, and year-end forms. In some cases, the entity type also matters, since treatment can differ for sole proprietorships, partnerships, and corporations. Retirement plan eligibility, benefit design, and any related-party rules can also affect the analysis, along with state payroll requirements and employment documentation. A CPA who reads your specifics can usually tell you, in plain English, where this lands.
In your 30-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“Should I pay someone as a 1099 contractor or an employee for tax purposes?”
“How do I know if I should hire someone as a contractor or employee for taxes?”
“I am hiring my first worker, should they be 1099 or W-2 for tax reasons?”
“What changes on my taxes if I use a 1099 contractor instead of an employee?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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