On Monday, March 25, Apple announced a few details about its brand-new streaming service, Apple TV+. The key word there is "few": Besides its name and a tiny sneak peek at some of the new shows you'll be able to watch through the app, the tech giant kept its introduction broad and light on specifics. Still, the company is putting some serious star power behind its original content, and seems poised to be a major player in the streaming service game. Click through to find out everything we know so far about Apple TV+. (Photos via Michael Short/Getty Images)
When will Apple TV+ be available? As of now there is no official release date, but it was confirmed at the Apple Event on March 25 that it will launch in over 100 countries in fall 2019. (Photo via Michael Short/Getty Images)
What will it look like? Like most available streaming services, Apple TV+ will be a paid, ad-free subscription service. Content will be available to download for offline viewing. (Photo via Michael Short/Getty Images)
How much will it cost? Pricing has not yet been made available. (Photo via Michael Short/Getty Images)
How do I use it? When Apple does eventually roll out its original programming, it'll be available through the redesigned Apple TV app. Outside of Apple devices (iOS and Mac), the app will also be available via some smart TVs, such as Samsung, VIZIO, LG, and Sony, as well as through Roku and Amazon Fire TV. (Photo via Stephen Lam/Getty Images)
What can I watch on Apple TV+? So far, only a small selection of the streaming service's programming has been revealed, but Apple said that over 20 original titles are in the works (including Reese Witherspoon and Jennifer Aniston's much-anticipated series The Morning Show). According to The Hollywood Reporter, Apple appears to be making an initial play for some pull in the TV awards space, having invited a handful of members of the Hollywood Foreign Press Association — who vote for the Golden Globes — to Monday's event. (Photo via Michael Short/Getty Images)
Will I see any familiar faces on these new shows? Oh boy, will you. Monday's event featured some serious star power, including Reese Witherspoon, Jennifer Aniston, and Steve Carell to tease The Morning Show; Jason Momoa and Alfre Woodard to introduce their fantasy series See; and director J.J. Abrams and musician Sara Bareilles promoting their romantic dramedy Little Voices. (Photo via Michael Short/Getty Images)
Will there be movies? While no specific films were revealed, director Steven Spielberg spoke at the event, and Apple has deals in place with major film production studios A24 and Cartoon Saloon. (Photo via Michael Short/Getty Images)
What about nonfiction and documentaries? Absolutely. None other than Oprah Winfrey was on hand to announce that she is working on several documentary series for Apple TV+. The Big Sick's Kumail Nanjiani also spoke on stage about his and wife Emily V. Gordon's heartfelt anthology series, Little America, which focuses on the lives of immigrants in America. (Photo via Michael Short/Getty Images)
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:
You X Ventures for Unsplash
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.
Kobu Agency for Unsplash
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
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regards to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. O'Keeffe Financial Partners and any other entity listed herein is not affiliated with Kestra IS or Kestra AS Investor Disclosures: https://bit.ly/KF-Disclosures