My spouse and I own and operate a small business in California. I want to incude my spouse on the taxes so she can share the SS benifits, but have recently heard that the tax benifits are larger if my spouse were an employee instead. I can pay her a monthly salary, which would qualify as a deduction for our business. But do I have to deduct payroll taxes from her check? And does that mean my self-employment tax would be less? Is this even possible or am I misinformed? Thanks!