Employer Duties

• Sign a S.E.E.D. Plan adoption agreement providing for:
  • W-2 wages for your spousal employee
  • Reimbursement to your spousal employee for out of pocket family medical expenses
• Hire your spouse and pay on a regular schedule a reasonable wage for services rendered
• Have a separate bank account for the business
• Obtain (if you do not have) an EIN (employer identification number) from the IRS. This is a SS-4 form and there is no cost.
• Document the job duties and the wage history of your employee
• Complete IRS forms required, including W-4, W-2, I-9 and 941
• Spousal wages should be deposited in a personal account and not in the business account
• Submit request for reimbursements of non-insured medical expenses to the company at least quarterly
• Take a business deduction on your Schedule C or F for the above medical premiums and healthcare expenses
• SAVE LOTS OF TAXES
• Sub (S) and (C) Corporations operate differently. Please review S.E.E.D. plan guide to (S) Corporation.

Flex Benefits and Administration will assist you with all of the above. We will remind you of what needs to be done and when. Your total management time should be two-four hours for the entire year.

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Email: kent@seedplan.com