The Olympics are ON! And we’re mostly pumped about the ice skating outfits, but, you know, those snowboarders aren’t too tough on the eyes… ;) But you know why we’re here right now — it’s time for your weekly roundup of randomness!
1. Hangin’ with Homies ($5): Air fresheners that look like hip hop and rap artists. What’s not to love?
2. Energy Gummi Bear Candy ($3): First of all, have you ever tried Perky Jerky? It’s caffeinated beef jerky and it is both terrifying and genius at the same time. And these energy bears are definitely the next level.
#Vacation Bikini Bottom
Resort Collection, these bikini bottoms are already on our summer must-have list.
4. Gold-Dipped Playing Cards ($18): Whoa. These are definitely the fanciest playing cards we’ve ever seen.
5. Bags That Look Like Animals (from $38): On the other end of the style spectrum, we’ve got animal face bags. Because, when in doubt you can always put an animal face on it.
6. Gold Medal Bottle Opener ($10): Since you didn’t make it to the Olympics, may we suggest a beer-lympics viewing party?
7. Go Girl Funnel ($13): Take a look at this thing. It’s a funnel made for ladies to pee on the go. For real. It’s reusable, and comes complete with a storage tube and tissue so you can keep everything tidy. Wait, what?
9. Doorman: Always having your personal packages shipped to your office because you’re never home at the right time? And what about when people send you things and you’ve got a pile of slips from USPS telling you about how they’re sorry they missed you? The worst! Doorman aims to solve that problem through evening package delivery on demand. It’s got a TaskRabbit and Uber vibe to it, and we’re definitely going to test it out. It’s only available in SF for now, but stay tuned.
10. Photos That Look Like Drawings: How crazy and beautiful are these photographs by Cynthia Greig?
Extremely Creepy Bonus: Way Too Realistic Human Font: We debated about whether or not to actually include the image you see below, mostly because it cannot be unseen. We went with “include” and apologize in advance.
What’s the weirdest or most innovative thing you’ve seen online this week? Talk to 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:
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