See the BritList Come to Life (aka The Brit + Co. Holiday Party!)
When it comes to holiday parties, it should come as no surprise that we pull out all the stops for the crew here at Brit HQ. From a beautifully catered meal to the most epic white elephant exchange ever, we definitely did it right this year. And guess what? It was like seeing the BritList come to life, so we couldn’t resist sharing some behind the scenes action with you, including the silliest gifts we’ve ever seen under a tree.
First up, let’s set the scene. We transformed Brit + Co SF into a full on party space, complete with a long enough table to seat… 42 people! How did this team get so freakin’ huge? I suppose the +1s helped ;)
Brit manned the mic and kicked off a white elephant (or dirty santa) gift exchange, followed by a whole bunch of surprise gifts for the team. Now, let’s check out those gifts!
I’m So Excited T-Shirt: Straight from our ’90s gift guide, this t-shirt was definitely fought over more than once. Oh Jesse Spano, you really dig deep.
Cards Against Humanity: This already-a-cult-classic game is basically a horribly offensive version of Apples to Apples, and we love it.
Totally Weird Horse Head Costumes: These were my contribution to the white elephant scene, and it should be no surprise that they ended up coming home with me.
Flamingo Beer Funnel: Who knew beer funnels came in such creative shapes?
Coffee Mug: This may have been the most fought over present at the party—guess it rings true? Eeek.
Giant Santa Sweater: And onto the second most fought over present at the party. It’s a gigantic Santa sweater, and everyone wants a piece.
Floating Target Shooting Set: For your inner hunter, a floating target shooting set is quite the coveted prize.
Smirnoff Ice Neon Light: We know it’s hard to see in black and white but this is a Smirnoff Ice bottle that has been turned into a battery-powered neon light. Thank you, Etsy, for existing!
Smirnoff Ice: And naturally, someone had to get iced… because icing is a trend that will never, ever go away at Brit HQ.
Hoodie Pillow: Snuggle up with this ridiculous travel pillow that comes with a hood.
DIY Selfie Photobooth Kit: And the award for most creative present goes to this selfie photobooth kit, complete with a remote that syncs with your smartphone’s camera.
+: Two flasks are obviously better than one, but maybe these two should switch?
Bacon Candy Canes: And finally, the ideal present for one of our resident vegetarians.
All in all, the Brit + Co. team definitely brought it this year!
See more behind the scenes action in our Facebook album! Now, go enjoy your holiday break.
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