Why You Should Definitely Turn Gchat Off While You’re Working
“I’ll ping you about it,” is a common phrase we use here in the Brit + Co office, and probably in your workplace too, right? What once was a way for us to secretly gossip with our friends while looking like we were tip-tapping away oh-so diligently on our to do list is now a totally acceptable form of communication from manager to intern and back again. And now we have a reason you should stop doing it. Like, right now.
According to a study done by researchers at George Mason University, when you interrupt people while they’re writing, their writing is not as good. Makes sense! They took groups of students and asked them to pen short essays. One group was left alone, another was interrupted while they were outlining their essay and the other was pestered while writing it. Those who were disrupted produced lower quality essays when compared to people who wrote without interruption. And although you may not want to admit it, that blinking green box, whether it’s coming from your bestie or your boss, is an interruption. Yes, the truth hurts sometimes, but it can also help.
While interruptions are bad for your workflow, multitasking is not. Cyrus Foroughi, the doctoral student who co-authored the paper this study was written up in explains: “There’s a difference between multitasking and interruptions. When you’re multitasking, you’re in control: You’re switching between tasks on your own. When you’re interrupted, someone else is structuring your train of thought… multitasking for a lot of individuals can be entirely effective…” And mastering multitasking could help you take better control over those interruptions.
Forwarding this to your coworkers and asking for a workday without interruptions is likely not the answer (and probably not the only key to unleashing your productivity gene). But anything you can filter out of your day (cough, Gchat, cough cough, refreshing Facebook, cough) you probably should. Try going invisible and checking your personal emails at a specific time you designate for yourself. Ask for a morning meeting with certain coworkers instead of little chats throughout the day if that works better for you both. And say bye to Gchat during “me time” — we know you were inspired to carve out all of that personal passion project time after peeping the daily routines of 26 famous creatives. Hey, it also might be time we gave more of those social media filtering apps a try…
Are you a Gchatter at work and at home? Have you mastered the art of multitasking or combatting interruptions at work? HALP us below!
(h/t New Republic)
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