When it comes to your taxes and net worth, paying attention pays off. If you operate your business as a proprietorship and your only employee is your spouse, you really need to pay attention if you want the tax benefits of the Section 105 medical reimbursement plan.
To have such a plan, you must prove that your employee-spouse is a bona fide employee. How do you do that?
Randall G. Knowles employed his wife Sheryl in his insurance sales business. Mr. and Mrs. Knowles signed both an employment contract and a medical reimbursement agreement. A few years ... Log in to view full article.