5 Things to Know Before Graduating College
Second semester is settling in, and now’s the time that college seniors usually spend breaking out in stress acne, exhausting the “apply now” button on LinkedIn, and binge eating donuts. These things, for the record, are completely normal, or at least things that consumed my second semester senior year.
1. Get a professional wardrobe, stat. I had two pairs of dress pants in my closet, a plethora of cardigans, and a job offer at an investment firm. I was supposed to start two weeks after my offer and I needed a wardrobe upgrade fast. And cheap. I wanted my power outfit, and luckily there were cost-effective and cute ways to achieve this. I hit up clearance racks at Express, the Limited, and Kohl’s and was able to come out with four pairs of dress pants for under $50 total. As my paychecks began rolling in, I was able to add more than just those basics to my closet, which now makes mornings easier since I have a closet with options!
2. Learn to converse with people your parents’ age (and older). Suddenly, I was surrounded by coworkers in stages of life far past mine. I was in a place where my guilty pleasure of One Direction didn’t fit, and I was hearing references from a time far before I was even a glimmer in my mother’s eye. Getting stuck in an elevator with one of these people seemed terrifying. And then, they became humanized. Just older humans. It’s all about finding a middle ground, asking about weekend plans, family and the traffic on the way to work. But what’s even more important, and far more flattering, is remembering what they said and asking about their daughter’s recital or the family barbecue the next time you see them. Everyone loves to be heard, regardless of their stage in life.
3. Get into a daily routine. Real life, although it can be crazy, is a true wake-up call for a daily routine. Determining a bedtime can make or break your next morning. Getting a good night’s sleep lets your boss know that you take your job seriously, and it keeps you accountable to putting your best foot forward. Walking into work ready to start the day can keep you efficient and happy until you walk out. That coveted “nap whenever” culture of college has to change, and it’s vital to a successful launch into the professional workplace.
4. Balance work life and personal life. This is a challenge I have yet to master. On one hand, our passion and drive as eager young professionals can set us apart. On the other hand, it’s just a job, and it’s the first time we even have the option of separating our lives. So far in my career, I’ve found that avoiding checking work email on weekends and at home has been a healthy way of doing this. It’s okay to check your email in the morning to see what needs priority when you get to work, but don’t set another place at the dinner table for your phone. Nights are about rest, and weekends are about rest. Coming into work rejuvenated and energized can have many benefits, far more than the attitude of work taking over every moment of our lives.
5. Don’t compare yourself to others. Comparison makes you second guess yourself. Comparison makes you stop setting goals and prevents you from celebrating milestones. So, stop. It’s your journey, so embrace it. The opportunities you took were yours and only yours. The pace at which you get promoted is the pace intended for you, so do your career path your way. As long as you work hard and take steps toward your dream career, you’re living the dream.
Seeking a career mentor or frequenting your post-grad resources can really help you feel more comfortable in your new big-kid shoes, and less alone in the hustle of adulthood. It may seem intimidating (it still seems that way to me), but it’s also exciting! So enjoy your last few donuts and mid-day naps, and turn your tassel with confidence!
Did you recently make the jump from college life to the real world? What do you wish someone told you? Share with us in the comments below.
Welcome to Selfmade Finance School, our new money series with Block Advisors to help small business owners with their tax, bookkeeping, and payroll needs year-round. This week, we explore the tax implications of bringing family members into your business.
The question for today is this: Does hiring your family members make sense for your business? Let me be clear. This is not a piece about whether hiring your family members makes sense for your relationships with those family members. As someone who is part of a family business, I could fill up a lot more than 600 words on my opinions about that. For today's purposes, we focus on whether it makes sense from an overall "good business and tax implication" perspective. As it turns out, there is a decent amount of tax nuance when it comes to employing your family. Let's break it down based on relationship to the employee:
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Spouses Who Are In Business Together
Personally, if I had to be in business with my husband, it would not go well. However, many couples build viable, strong businesses together and I say, good for them! Depending on how you have your business entity structured, it will make a big difference on the tax treatment of you and your spouse working as partners. Because a business jointly owned and operated by a married couple is generally treated as a partnership for Federal tax purposes, the spouses must comply with filing and record keeping requirements imposed on partnerships and their partners. The election to file two Schedule C (Form 1040) forms, (one for each spouse) permits certain married co-owners to avoid filing partnership returns, provided that each spouse separately reports a share of all the businesses' items of income, gain, loss, deduction, and credit. Under the election, both spouses will be subject to self-employment tax and on net earnings from self-employment and receive credit for Social Security earnings.
One Spouse Employs Another
If you have a dynamic where your spouse is an employee of your business, then your spouse's wages are subject to income tax withholding, Social Security and Medicare taxes. If you are self-employed (not a corporation or a partnership), your spouse's pay does not have to be included in your federal unemployment tax account (FUTA) contributions and payments. However, if your business is a corporation or a partnership you must include that spouse's pay in your unemployment tax contribution calculation.
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You Employ Your Child
First, let's be clear. I work in my family business, but I am an adult, so I am treated just like a normal employee. However, if you, for example, run a family restaurant and want to hire your children under 18 to work for you, there are some tax benefits. But first, you should check with your state for rules on how many hours minors can work (in non-agricultural jobs) and reference the Fair Labor Standards Act for information on limitations on the kinds of work children can perform.
"This is an often overlooked or under-utilized strategy. Paying your children for true services they provide in your business can be a powerful tax-saving tool," says Cathi Reed, Block Advisors Regional Director. "If you are a sole-proprietorship or single member LLC, and the child is less than 18 years of age, the business is not required to withhold FICA or payroll taxes. The child can use his or her standard deduction against income you pay."
You Hire Your Parent
Oh dear. If you are brave enough to do this, know that you will need to pay Social Security and Medicare taxes on your parent's wages and make the appropriate withholdings, but you don't have to pay unemployment taxes. Now all you have to do is convince your parent that you are the boss. Have fun with that!
Is Hiring Family Members Worth It For The Tax Benefits?
"There are some positive tax advantages to hiring family members. It's important to treat a family member like any other employee. Hiring your children can result in substantial savings for businesses. Make sure your child has real, age-appropriate work to do and a reasonable pay rate, comparable to other employees. Consult with a Block Advisors small business certified tax pro to ensure that you are complying with all requirements," advises Reed. "Block Advisors, a team within H&R Block, is dedicated to meeting the tax, bookkeeping and payroll needs of small business owners year-round. To start working with the tax experts at Block Advisors, visit blockadvisors.com."
In my opinion, you should not hire a family member solely because of the tax benefits. You should always hire based on whether that person is right for the job and keep in mind how this hire could materially impact your relationship with that person and others in your family. Finally, as I mentioned, make sure you have a tax professional on your team when making these determinations. As you can see, things can get a little tricky!
*All details were sourced from IRS.gov and blockadvisors.com