Here’s a powerful reason to consider putting your spouse on payroll — the Health Reimbursement Arrangement (HRA).
In a typical S-Corporation, you can write off health insurance premiums, but not medical expenses like co-pays, deductibles, dental, vision, or chiropractic care. However, with an HRA, you can.
Here’s how it works:
If your spouse is employed through your business (even part-time), you can create a support company that reimburses your spouse for medical expenses — covering your spouse, dependents, and even you. Those reimbursements then become a tax-deductible expense for your business.
This strategy doesn’t necessarily require a formal W-2. It’s about creating the proper structure and documentation — and it’s 100% legal under IRS rules.
Learn more in my book The Tax and Legal Playbook or listen to the full podcast episode on this strategy.
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