2 jobs tax code

Should I Take Another Job?

Working a second job might help you attain your financial objectives quicker in many situations. However, before you take the leap, keep the following considerations in mind:

Will your current employer enable you to work a second job?

There might be tax ramifications (it is your responsibility to inform the IRS of changes to your income)

Cities and metropolitan locations offer more chances for part-time/flexible employment, while rural places have less. Nonetheless, there are several side occupations you may accomplish from home.

What are your family obligations? Could you work a second job around these obligations?

Working two jobs needs a lot of energy, advance preparation, and an optimistic mindset.

We'll go through each of the above reasons in further depth to help you determine whether a second job is good for you. Let's start with the advantages and disadvantages of working a second job.

The Benefits of Working a Second Job

The main reason for taking up a second job is to supplement your income. However, there are several extra advantages to working a second job:

Improve Your Skills - Assume you've been a health assistant for 10 years. You've gained good interpersonal skills over this period, but you've never had the opportunity to improve your IT abilities. You might become more IT knowledgeable if you got a data-entry job that you could perform in the evenings. Working two jobs might help you broaden your skill set and increase your employability.

Refocus - If you feel dissatisfied or bored in your spare time, consider taking on a second job.

Job Safety – Many of us are concerned about losing our jobs in today's market. If you have two jobs in different fields, the chances of losing both are small.

A Low-Risk Approach to Trying a New Career – Working two jobs enables you to experiment with various sectors and businesses without committing to them entirely. Indeed, many full-time freelancers began by freelancing in addition to their day job.

While second jobs might provide many benefits, they are not all made equal. Some second occupations provide relatively few of the benefits described above and may be more trouble than it's worth. That is why it is important to choose a second career that matches your lifestyle.

The Drawbacks of Working a Second Job

Working a second job may have certain disadvantages. As an example:

Less Money Than It's Worth — If you're looking for a babysitter to help you work a second job, this may not be worth it. In addition, when individuals start working two jobs, they spend more money on takeaway coffee and high-energy foods to get them through the day. Finally, there is the matter of taxes (more on this below).

Burnout - Because everyone's burnout threshold is different, attempt to listen into your personal requirements before taking on a second job. Consider the following: Is my primary job already causing me stress? Or could I manage some more responsibilities? Could I handle greater physical exercise throughout the day? Will my family support me if I work a second job? Remember that burnout might cause you to lose both jobs, so you should be pretty sure in your ability to handle a second job before committing to it.

Weight Gain - If you don't prepare properly, working a second job might lead to unhealthy eating habits.

Relationship Issues - If you work 24 hours a day, your family may begin to feel ignored.

Problems at Your Main Job — Working two jobs might get you in problems with your primary workplace, particularly if your boss suspects a 'conflict of interest' (more on this below). Even if your company enables you to work a second job, it is your obligation to ensure that your job performance is not harmed.

Can an employer prevent me from doing a second job?

Employment law is rather complicated, and laws differ from state to state. If you're thinking of taking on a second job, check through your employment contract first.

A 'non-compete' provision is common in work contracts. Some non-compete provisions prohibit you from taking on any other paid employment, while others prohibit you from working in a position where there may be a 'conflict of interest.'

In this scenario, your contract most likely stipulates that you must notify the HR department about the second job before taking it, and they will determine whether or not there is a conflict of interest. If your second employment is in the same industry as your first work, you may have a conflict of interest.

If your employment contract is unclear about moonlighting or you don't notice a non-compete provision, you should contact HR and explain the policy before starting a second job.

Non-compete agreements are more typical in office positions, but they are equally widespread in the healthcare industry. These provisions are not applicable in all states of the United States. A non-compete agreement is unlikely to be legally enforceable if you reside in California, Montana, North Dakota, or Oklahoma.

How to Approach Your Boss About Taking a Second Job

It might be difficult to bring up the subject of a second job. If your employment contract requires you to get authorization from HR before starting a second job, make sure you do so. Keep the following in mind as well:

Set up a face-to-face appointment with HR so you can explain why you wish to locate a second job. Aside from the extra revenue, underline the other possible advantages of holding a second job (for example, you may become more physically active or learn new skills).

Make a strategy for how you will manage your time and your jobs successfully.

Make it clear that your first job is still your first priority, and that you're willing to undergo frequent performance evaluations if required.

Inform your employer of your interests (as previously said, if you tell them you want to work in a different field, they are less likely to be worried).

Maintain a written record of their final decision.

You may still inquire whether your employer has a blanket prohibition on all sorts of supplementary work. Set up a meeting with your boss or an HR representative to discuss their moonlighting policy. If nothing else, this may assist you in negotiating an internal promotion or salary increase.

Can an Employer Learn About a Second Job?

When you start a second job, you normally modify your W-4 form from your first employment to ensure you pay the right amount of tax. Some folks are concerned that changing their W-4 form may give away the game. Although updating your W-4 informs employers that your family income/tax status has changed, they will not know what has changed in your life.

It is not unforeseeable that your employer will learn about your second employment, but in fact, they almost always do. You are more likely to be exposed if you work for another organization for a long time. If your boss finds out about your second job, it's typically because of one of the following:

Your performance deteriorates

You're getting there/leaving earlier/later than usual.

You tell someone about your employment, and word spreads.

Someone notices you at work (in person or on social media)

If your second job involves interacting with customers, you are more likely to be'spotted' by coworkers.

How Much Tax Do You Pay If You Work a Second Job?

One of the most serious concerns you face when establishing a second job is paying the improper amount of tax. Most Americans, as you are presumably aware, are entitled to $12,200 in tax-free income. Whether you work one, two, or three jobs, any income beyond this threshold is subject to taxation. If you neglect to notify the IRS of your condition, you may be taxed twice on the same income.

When you start a new job, you must complete a W-4 form for your new employer and revise your W-4 form for your previous employer to ensure the information is right. If you work two jobs, you should calculate your tax obligations/allowances using the Two-Earners/Multiple Jobs spreadsheet or the IRS Withholding Calculator.