Money

Tax Facts

The green surrounding me for St. Patrick’s Day celebrations this week reminds me of the color of money which reminds me that it is tax season which reminds me of the education I received when filing them this year. What is your philosophy for paying taxes? Overpay and get a refund? Under pay and owe at tax time? How do you keep up with all the changes in tax laws? Here are three things you may not know about filing your taxes this year.

Quarterly Not Annually

Do you have as few tax dollars taken out of your paycheck as possible? It’s logical you want to keep as much of the money you earn as allowed. Are you satisfied not receiving a tax refund if it means that you keep your money during the year? Did you know the IRS expects to be paid a certain percentage based on your tax bracket at the time you receive your pay and reconciles quarterly, not annually? If you haven’t had the appropriate amount withheld from your paycheck every quarter, then you are assigned a penalty fee when filing your annual return. Now I know why my gig-working friends fill out Form W-4 every year.

Not a Firm Deadline

Every organization that owes you a tax form is supposed to mail/email it by January 31, right? That means you should be able to safely file your tax return in mid-February. Did you know that if you have certain investments, for example, you are a partner in a business and you report your share of that business’s income on your personal tax return, then you may not receive a K-1 form until mid-March? More on that here.

No Penalty for No Coverage

Did you receive any 1095 forms? They provide information about your health care coverage. Remember back in 2010 when the Affordable Care Act required all Americans to have health insurance or else you paid a fine at tax time? The 1095 forms state how you are covered, for example If you received health care coverage through your employer or the Marketplace. Did you know that there has not been a penalty at the federal level for not having health insurance since January 1, 2019? Yet, these forms keep coming. California, Washington D.C., Massachusetts, New Jersey, Rhode Island, and Vermont require their residents to have health insurance (although, Vermont does not impose a penalty for no coverage). The IRS wants the information, so you keep receiving these forms.

You have several options for filing tax returns. For example, you can purchase DIY software. Here is a comparison of a few. You can hire someone to do them for you. Here is how to look for a good tax preparer. If your annual adjusted income is $73,000 or less, then you are eligible for free guided preparation through this program. Any of these options can provide you with information on annual changes.

What is your philosophy about filing tax returns? Please share in the comments.

Love Local

This Valentine’s Day the news about Mikesell’s is a heart-breaking reminder to support your local small businesses. If an organization that has operated for over 110 years can close, then every local business is in danger. Here are three reasons why you should spend your hard-earned money locally.

Your Money Stays Here

In 2019, 47.3 percent of employees in the United States worked for small businesses. It’s likely you know someone who works for one: your next-door neighbor the landscaper, your nephew the HVAC apprentice, your friend the bookkeeper. By using their services, you keep your money in your community. You have much more influence locally than you have globally. Big box stores often get tax breaks from local governments that local small businesses do not receive. When you vote with your wallet by choosing to purchase local over big box stores, it is a statement of your values. Small businesses competing with one another prompts innovation and lower prices. This is why I like to frequent several local coffeeshops. (Okay, it is ONE of the reasons I spend so much money in local coffeeshops.) The sales tax from small businesses stays in your community. This money goes to pay for things like public schools, fire departments, and libraries. Local small businesses tend to transact with other local small businesses keeping even more money flowing through your local economy.

You Help People Make a Living

Sure, you can pick up Chipotle for lunch, but what about that Mom and Pop Mexican food restaurant down the street? Chipotle is not going anywhere, but every day Mom and Pop are struggling to stay in business. Some small businesses sell products that are locally made. The closer the product is to the place where it is sold, the less transportation it takes to get it there. This reduces the amount of fuel needed and saves the seller money. It also reduces the amount of emissions in the air making the environment more safe for everyone. Buying local allows more of your neighbors to make a living. That Mom and Pop Mexican food restaurant hires local residents as managers, servers, cooks, etc. Does your city have a farmer’s market? The space, products, and artisans are all local. Local small businesses positively impact your local economy in multiple ways throughout your community.

You Create Community

The more invested you are in a community, the more concerned you are about all of its citizens. Their welfare and future are tied to yours. Local small businesses are famous for supporting nonprofits. According to businessjournaldaily.com, small businesses donate 250% more than large businesses to community causes. Small local businesses sponsor kids’ sports clubs, food banks, and job-seekers programs. It’s likely that you can name several local small businesses that support the same nonprofits you do.

Valentine’s Day is the perfect occasion to show some love to your local small businesses. What are some of your favorites? Please give them a shoutout in the comments.

Hush Money

Last week in part one of the It’s so Quiet series, we talked about Quiet Promotion. This week let’s look at the Quiet Quitting trend, particularly focusing on how it may impact your income. Can you afford to quiet quit? Can you afford not to?

What Is It?

Quiet Quitting is meeting the minimum expectations of your job requirements and feeling psychologically detached from your work. If you avoid leading a team of your coworkers or you refuse to work overtime, you may be a Quiet Quitter.

What Can You Do?

Job descriptions are living documents. They expand and contract with both the company’s needs and the employee’s abilities. Level setting expectations on a regular basis is vital to shaping both your work and your engagement. Here are three things you can do:

Document: Make a list of duties you were asked to do that are outside of your job description. Are they housekeeping tasks? For example, taking notes in every team meeting, typing them up, and distributing them. Or, are they responsibilities that will make you visible to leadership? For example, presenting your department’s Q4 statistics in the partner meeting. If they are housekeeping, then no wonder you’re discouraged. But if they are responsibilities that put you in front of the people who can further your career, then rethink what may be going on behind the scenes.

Communicate: Whatever your documentation reveals, it’s time for a 1:1 with your manager. Present your list. Politely state you’ve noticed an uptick in duties. Ask if these assignments are intentional. If so, and they are housekeeping, is it because of your status in the company? (E.g., You are a junior member of the team.) If the assignments are more high-profile, are you being set up for promotion?

Strategize: After documenting and discussing, think about where you want to go from here. If the assignments you received position you to advance, then the extra work benefits you in the long run. However, the rise and grind culture leads to burnout. If you are expected to go above and beyond your job description with no end and no reward in sight, then do you really want to stay at your organization? Particularly if you work in Big Tech. Seventy-nine percent of the workers laid off last year had another job within three months. Things to consider when making your decision:

Do you have an emergency fund with $1200 in it?
Do you also have six months worth of expenses saved?
How will the coming recession impact your portfolio, mortgage, and/or loans?
Do you have a side gig that you can ramp up to second-job status?
Do you have an alternative for healthcare coverage? (E.g., through your spouse’s employer)
Does your current employer offer benefits (e.g., working remote and/or flexibility) that compensate for the extra duties?

You could also keep quietly quitting, but that can lead to Quiet Firing; more on that next week.

Have you ever quietly quit a job? Please share in the comments.

Your Favorite Things

We have arrived at the end of another year. Being the data geek that I am, I analyzed the stats to see what articles received the most views. If you missed these conversations, or you’d like to revisit them, here are the top three most viewed articles in each category.

Time

Time for a Brand Refresh

Too Young to be Done

Time for a Change

Energy

Battery Low

You Can Talk to Me

You Can’t Always Get What You Want

Attention

Thank you for walking down memory lane with me. The best holiday gift you can give me this year is your feedback. What topics did you like? What other topics would you like to discuss? What challenges at work do you need help solving? Please share in the comments.

The Most Expensive Gift You Can Give

Are you panicking because you have yet to come up with a gift for your hard-to-buy-for person that won’t bust your budget? Fear not: for behold, I bring you good tidings of great joy, which shall be to all stressed out people. Here are 25 gift ideas that cost more time than money.

Bake cookies – It’s not about the cookies. It’s about spending time together. If you don’t want to make the cookies, then clean up the kitchen afterward. If you don’t want to eat the cookies, drop them off at your local police station, firehouse, or emergency department in appreciation to your first responders
Free labor – Does someone need help painting their living room? Moving to a new residence? Rearranging furniture? Print a gift certificate offering help
Christmas movie marathon – Choose your favorites and watch together. Yes, Die Hard is a Christmas movie
Cooking class – If someone loves to eat a certain meal of yours, take all the ingredients to their kitchen and teach them how to make it
Parades and football all day – Take turns explaining why you think these activities happen on a holiday
Video game tournament – Teach someone how to play your favorite or learn how to play theirs
Love notes – For those whose love language is words of affirmation, write them a paragraph explaining what you love about them
Skill share – You are proficient in Excel, but can’t trim your dog’s toenails. Your brother needs an Excel primer and can trim doggy toenails. Trade tutorials
Brand refresh – Audit their website, proofread their resume, tell them what you like about their LinkedIn profile and what could be improved
Go for a walk/hike – If the weather does not currently permit, issue them an IOU
Holiday lights – Map out a route, take along some hot chocolate and maybe the dog, and drive through local light displays
Volunteer together – Your church and local food bank always need help
Online yoga class – Turn on YouTube and search for “twenty-minute yoga for beginners”
Scavenger hunt – Think Easter egg hunt but with candy canes
Video tribute – Are you good with iMovie or a similar platform? String together some of their favorite photos and set them to music
Playlists – On the music-streaming platform of your choice
Museum visit plan – Some museums are free and some are free on certain days. Spend some time brainstorming where you’d like to go and when
Start learning a language together – set up a schedule to practice with one another
Sit – Create a gift certificate for a few hours of baby, pet, or house-sitting
Photographer – Intentionally document this year’s celebration and send the photos to everyone
Pre-celebration service – Help the host clean house before guests arrive. Or, take their car for a wash and vacuum before their holiday trip
Outdoor service – Create a gift certificate for shoveling the snow off their driveway and sidewalk after the next accumulation
Something to look forward to – Schedule a future 1:1. Coffee date? Church date? Ice Cream date?
Storage – Offer to scan their printed photos and save them on a USB
Give it away – Create a gift certificate to help clean out their closets. After the purge, take the donations to a Goodwill or Salvation Army store and bring back a receipt for their tax purposes

The most expensive gift you can give is your time. You can make more money, but you can’t make more time. Please spend yours wisely. Thank you for the time you spent reading this article. Happy Holidays!

Ho Ho Hold Up

Back in October we saw jack-o-lanterns, cornucopias, and reindeer all sitting together on store shelves. Now that shipping is better, the supply chain is bringing us too many goodies too fast and we feel the fourth quarter holidays all running together. Maybe we should embrace it and create a new holiday: Hallothankmas. It’s not just the holidays that are accelerating. Threat actors are too. Cyber criminals are lying in wait for unsuspecting shoppers who give out their Personally Identifiable Information (PII) faster than mall Santas give out candy canes. If you’re shopping online this holiday season, here are four things you can you do to protect yourself.

Know Where You Are

The number of phony websites increases this time of year. Before entering any payment information, double check the URL you’re using. Is the name of the company spelled correctly? Does it have extra words that you didn’t expect? When you go to the payment page, Is the lock symbol and “https” in the URL?

Legitimate Forms of Payment

Do they want you to pay with cryptocurrency, gift cards, or a wire transfer? These are all untraceable methods of payment. Once you complete a transaction with those forms of payment, you can’t get your money back. Insisting on these ways to pay is a clue that the retailer is a fraud. A scammer reached out to me recently and I had to laugh. I received an email allegedly from my boss instructing me to go out and buy 10 gift cards then reply to the email for further instructions. How did I know it was a scam? I no longer worked for that boss.

You Are a Target

You are bombarded by targeted ads following you from Instagram to Facebook and all platforms in between. Some of those ads are from disreputable companies whose branding tempts you with hard-to-believe deals on popular merchandise. Do not click on those. This is not the time to try an unknown retailer. Some of these companies are selling knock-offs and some aren’t selling anything. They collect your PII and money and send you nothing. If you are tempted, read reviews of both the item you want to purchase and the company. If there are no reviews, or few, or they are all glowing, skip this seller.

Pay Attention

Things tend to get busier this time of year. You may forget to check your accounts as often as usual. Cyber criminals are counting on that. If you have increased your online shopping, then check your accounts more often through the end of the year. If you see any transactions that you don’t recognize, can’t find an emailed receipt for, or the transaction is for an odd amount (e.g., .99¢), contact your financial institution immediately.

Hallowthankmas can be dangerous for your wallet on a few levels. It’s the season of giving, but that does not include giving away your money or PII. You can keep your guard up where finances are concerned while still letting it down for friends and family.

Do you take extra precautions at this time of year to protect your financial accounts? What are they? Please share in the comments.

For Your Review

It’s the most wonderful time of the year! No, not Halloween; performance reviews! What? You don’t like performance reviews? I get it, but instead of thinking of it as your manager’s opportunity to remind you how far short of the company’s expectations you fell, turn the spotlight on how valuable you are. Employees have more leverage than ever to get both a promotion and a raise. You’ll probably have to ask for both, but how?

Justify

Your company pays you for the profitability you bring, not for your personal circumstances. Don’t base your case for a pay increase on the amount of your bills. Build it on your accomplishments that helped the company achieve its mission. The easiest way to do this is to keep a folder on your desktop with a collection of evidence proving your worth. It’s not only helpful for performance reviews, it boosts your confidence all year long. The folder can include:

Emails thanking you for a job well done
A link to the recommendation section of your LinkedIn profile. You ask people for LinkedIn recommendations, right? If not, do; and offer to give one in return
Notes on your Top 20 List of Achievements. Include:
- Projects you led that moved the company closer to its goals
- Revenue you brought in
- Savings you attained
- New clients you acquired (and their worth)
- Initiatives you originated and their positive financial impact

This is a job interview. It requires rehearsal. Ask someone to role play with you. After summarizing your Top 20 List of Achievements, encourage your practice partner to ask you hard follow-up questions. Frame all your answers around why your company would benefit by promoting you. Here are a few questions to help you hear your pitch out loud then get their feedback:

How will advancing your career positively affect the company?
What projects/initiatives/clients will this new role allow you to obtain?
Who in the company has to invest their time, energy, and attention in you so that you will be successful in the new role?

Specify

Now that you know and can demonstrate your worth, you have to respectfully communicate that you expect to be recognized and compensated for it. If your manager asks how much money you expect to make, ask them what their budget is. This can prevent you from not asking for enough. Whether or not they offer a number, enter the conversation with a salary range in mind and ask for the top. If the salary range for the position you want is public information within the company, then it’s easy to find. If you have to dig for it, is there someone who held that position whom you can ask? If not, research other job descriptions with the title you want as the keywords. What is the current salary for someone with your level of education, experience, and track record who lives in your city? Bring these statistics with you. They provide credibility of your value in the talent pool.

Clarify

If the company can’t afford to give you more money, but still wants to give you more responsibility, then think carefully before deciding. A performance review is a negotiation. Don’t think of their answer as a no. Think of it as a not yet. You can negotiate for compensation other than money right now and revisit the salary conversation later. For example, will they:

give you a better title?
approve working remotely two days a week?
assign you to lead more high-visibility projects?
reimburse you for leadership development training?

If you can reach a compromise, then get in writing exactly what your additional duties will be, the compensation you will receive for them, and for how long. Request to revisit the pay increase discussion in six months. Schedule that meeting before the conversation ends. Make sure it’s noted on your manager’s calendar and in your personnel file. The two of you are not the only people looking at your performance review. HR (at least!) is too. Make sure as many people as is appropriate know this conversation is not over.

Asking for a raise is not about what you want. It’s about what your performance has earned. You uniquely contribute to your organization and they benefit from your work, your influence, and your networks.

Is this how you prepare for a performance review? What did I forget? Please share in the comments.

Cyber Scary

October is practically here and while that means full on Halloween celebrating for most people, in my world, it means Cybersecurity Awareness Month. You know to keep your Personally Identifiable Information (PII) like Social Security number and bank account information secret, but you have no control over those banks getting hacked by Threat Actors. Nor can your computer’s and phone’s firewalls stop every phishing email from reaching you. Last year, identity theft cost Americans $5.8 BILLION. Here are some Don’ts and Dos to protect your identity.

Don’t Believe Everything Your Phone Shows You

We’ve talked before about not clicking on links in texts or emails unless you are expecting the communication. Now cyber scammers are getting bolder. They call claiming to be a representative from your bank, spoofing the bank’s phone number so that it looks legitimate on your caller ID. They speak in an urgent tone claiming there is something wrong with your account and they need to fix it right now using your bank’s money transfer service. They instruct you to transfer money out of your account and into their holding account, but the only holding going on is the cybercriminal holding on to your money and vanishing.

Don’t Be Lazy

From January – June, 2022, 817 American companies were compromised by cybercriminals with 53.4 million victims affected. Check here for a list of the most stolen PII. Before giving any company your PII, check their website to see what their cyber defenses are. If that information isn’t on the site, ask customer service: How may attacks have they withstood? What is their protocol for notifying you that a breach happened? How often do they update and patch their cybersecurity systems?

Don’t Leave It On

When you’re not using Bluetooth-enabled devices, turn Bluetooth off. Leaving it on allows hackers to see devices that you previously connected with. They can pretend to be one of those devices to access another one and steal your PII. For example, if you have a wireless printer in your home office, turn it off when you aren’t printing. Here is a good resource for more information.

Do Enable Two-factor Authentication

When a website, for example, your bank or favorite social media platform, gives you the option to enable two-factor authentication, say yes. I know you are rarely in the mood, but the protection is worth the time it takes to set up. It will take way more time to try to get back the identity a cybercriminal stole than it will take you to wait for and input the code the company sends you.

Do Shred

If you still receive paper statements for your bank accounts, credit cards, student loans, or any documents with PII on them, then shred them on a regular basis. If you don’t own a shredder, or have a friend who will let you borrow theirs, go online and search for “community shredding events near you.”

Do Monitor Your Accounts

Ultimately, you are responsible for your own cybersecurity. If you do not currently check your bank accounts weekly, then start. If you see something weird, like a transaction you did not initiate, contact your bank and investigate. If you do not check your credit score twice a year, then start. If you have experienced an attack on your credit, consider freezing it. Freezing your credit is a bit of a task and has pros and cons. Read about them here.

What do you do to protect your PII from cybercriminals? Please share in the comments.

Emerging Expectations

A year ago Google gave their employees access to a pay calculator that let them estimate how permanently working remotely would impact their salaries. For most workers it meant a reduction. Since then Facebook, Twitter, and Microsoft revealed similar policies. What is an employer’s justification for cutting pay if their employees work from home? Should you lower your expectations for compensation if it means you can work 100% remotely?

Employers Parry

Tech companies that have national and International workforces like Google, Facebook, and Microsoft revise an employee’s salary when the employee changes the location of their residence. For example, If the employee moves to a lower cost of living area, then their pay is reduced. Conversely, a few companies (e.g., Spotify, Reddit) raised the compensation of remote employees during the pandemic to match the salaries of their workforces that are based in New York and San Francisco. Google’s explanation for decreasing remote employee’s wages is that their compensation packages are always based on location since they pay employees top of the range for the market the employee lives in. Facebook said they had to adjust an employee’s salary to their location for accounting purposes and tax requirements. VMware and Gitlab also commented. Read more here. Companies cutting pay for working from home may be using it as a device to get employees back in the office. Maybe they think it signals a return to business as pre-pandemic usual. Maybe they feel if your manager doesn’t see you working, then you must not be. Maybe they believe physical presence boosts collaboration and innovation. These expectations need to be re-examined. We are living in a business as unusual, homing from work, videoconferencing our heads off era. Work-life integration advances both work and life.

Employees Counter-parry

Studies of productivity during the pandemic revealed that remote workers not only accomplished the same tasks as they did in the office, they also worked longer hours to do so. Employees feel like they should be paid for the work they do, not where they do it, but the majority of their managers disagree. Seventy-three percent of managers affirm that productivity was great. Their problem is, managing their remote workforce caused 69% of the managers to burnout. The study also indicates that 51% of company leaders believe employees want to return to an office and that incentives like free food and happy hours will lure them back. If employees are willing to give up promotions and wage increases to work from home, snacks are not enough of an incentive to return to an office. However, on-site childcare would be a good start.

Touché

This fencing match isn’t really about money. It’s about power. Employers have traditionally held all the power in the relationship. The pandemic gave employees a sense of agency and a means to prove they can handle it. A significant percentage of the workforce discovered that it does not make sense for them to stay in one place 9:00am-5:00pm Monday – Friday to do their jobs well. And so far nothing management has done to lure them back has changed their minds.

Would you accept a pay cut to work from home? Please share why or why not in the comments.

Fiscal Finesse

If you work for a business, then you are either trying to bring revenue to it or cut its expenses. If you work for a non-profit, then you participate in fund-raising efforts. If you work for a government agency, then you try to spend as little of its budget as possible.

It’s a Job

Managing money isn’t the first skill we associate with motherhood, but motherhood is a job, and every job is about money. Mom has to learn how to pay for the things her baby needs (e.g., diapers, formula). She has to learn how to pay for the things her child needs (e.g., school supplies, clothes). She has to learn how to teach her teenager how to pay for the things they need (e.g., too many to list). These skills transfer to the workplace where Mom uses them to budget for her team.

Disclaimer

ICYMI, I’m not suggesting that every woman needs to have a child in order to be a good leader. I’m saying that motherhood is, by default, leadership training. In the final installment of this series, let’s look at how moms learn about handling money both for the short-term and the long-term.

Short-term Savings at Home

Everyone needs to learn how to live within their means. At home moms have extra decisions to make regarding the household budget. For example, when buying clothing for her rapidly growing toddler, must the clothes be brand new? If her child is going to outgrow their clothes in a few months, then why not thrift shop?

Short-term Savings at Work

Leaders have to learn how to stretch a dollar. At work leaders have extra decisions to make regarding the office budget. For example, when purchasing furniture for the break room, must the tables and chairs be brand new? If clients aren’t going to see them, then would refurbished or gently used tables and chairs work?

Long-term Savings at Home

Moms have to prepare their children for the future. This is not always fun. At home this may look like teaching a child delayed gratification. For example, Mom stays strong and denies her child permission to buy the $60 video game now because that money would have to come from the savings account set aside to buy her child a car in two years.

Long-term Savings at Work

Leaders have to prepare their team for the future. This is not always fun. At work this may look like teaching the team delayed gratification. For example, a leader stays strong and denies her team permission to leave work early on the Friday before a holiday weekend because there is a backlog of sales calls to follow up on. Those follow-ups could fill next week’s pipeline.

It Isn’t Really About the Money

Money isn’t really about money. It’s about what you can do when you have money and what you can’t do when you don’t. A mom learns to consider her child’s feelings when making money decisions at home. When Mom is a leader at work, she’s practiced at considering her staff’s feelings. In terms of money, motherhood teaches women to influence through vision casting not force. It trains women to learn their team members’ emotional reactions to stimuli and use them to push the team to do good work. It reminds them that the only failure is to stop trying.

How do you think motherhood prepares a woman to handle a budget at work? Please share in the comments.