Is it legal to pay my wife and pay social security tax....?

Question

and then she can enjoy social security benefit later even she never work?

Answer 1

If your wife does not want to work as a regular employee, she can work as an independent contractor. Assign her some fixed business jobs, which she can do at her own time. Pay her by check. You do not need to withhold the taxes.

Now when you file your return, Married Filing Jointly will be easier, on your schedule C you can deduct what you paid to your wife as independent contractor. Attach another schedule C for your wife. Show her income here. Net result -- your combined income will not be effected.

Your schedule C income and your wife's schedule C income are subject to SE taxes.

Answer 2

Your wife will get a Social Security benefit as long as you qualify for benefits. Her benefit is based on your benefit.

If you have a business you can hire your wife as an employee and pay her a salary. You would then pay SS and Medicare taxes for her, plus withhold SS and Medicare from her pay, effectively paying double SS and Medicare. Unless you can pay her enough to earn more of a benefit on her own account than she is going to get anyway because of your account, you will not come out ahead.

Your wife would have to perform services for her salary, you cannot just hand her a salary.

Answer 3

If you run a business and she works in the business, then yes she can be paid by the business and would then have social security tax withheld. Otherwise no. But she will get benefits based on your account if she doesn't have enough quarters of her own to receive her own benefits.

Answer 4

If she is an employee in your business you can pay her wages subject to social security. Without working, she will be entitled to 50% of whatever benefit you get at no extra charge. Unless she can top that by working, why bother?