Stepbrother Doesn't Work - Consequences/Prognosis (?)

[Time2]

When my wife and I had a sole proprietorship, schedule C had a line for contractor labor, we split the income and put her income as contract labor.
She had a schedule C page for her income, my income was on the main page and we each had a Schedule SE to calculate the self employment tax due.
I will say my accountant never paid his wife who worked in the business and filed all income under his name. I hope that worked out for her because he died in his 50s. It may work out better, because he had twice the income and would have higher payout, if she gets 100% of his SS, then it worked for them. I don't know for sure i is 100%.

 

[pb4uski]

I am under the impression that even as a sole proprietor, you still need to pay self-employment taxes, i.e. social security and medicare (FICA). ...

That's true, but the self employment tax gets credited to the SSN on the related Schedule C... so if the husband's SSN is on Schedule C and they both work in the business then the husband is the only one to get credit for SE taxes paid unless you do something like what Time did to split who gets credited for SE taxes paid.