Five Below Employees: Does Your Child Need to File an Income Tax Return?
As a parent working at Five Below, we encourage our children to work, so they can learn important values about work and independence. At what point, if at all, do children need to file an income tax return for the money they earn?
The IRS does not exempt anyone from the requirement to file a tax return based on age, even if your child is declared as a dependent on your tax return.
Your dependent children must file a tax return when they earn above a certain amount of income.
Dependent children with earned income in excess of $12,550 must file an income tax return. Dependent children with unearned income of more than $1,100 must also file a return. And if the dependent child's earned and unearned income together total more than the larger of $1,100, or a total earned income up to $12,200 plus $350.
These thresholds are subject to change, so please consult a professional with tax expertise regarding your individual situation.
Here's an example. Kyle is a 20-year-old college student who's claimed as a dependent by his parents. He received $400 in unearned income and $5,500 for a part-time job on campus. He does not have to file a tax return because both his unearned and earned income fall below the thresholds. Kyle's total income of $5,900 is less than his total earned income plus $350.
Even if your child earns less than the threshold amount, filing a tax return may be worthwhile if your child is eligible for a tax refund.
If you decide to prepare a separate return for your child, the same reduced standard deduction rules detailed above will apply.
The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties.
IRS.gov, 2022
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
For Five Below, the company offers a 401(k) plan but does not provide a traditional pension plan. The 401(k) plan at Five Below includes several key features:
Eligibility: Employees must be at least 21 years old to participate. Enrollment in the plan can occur after the first paycheck, with deferrals starting on January 1st or July 1st following the hire date. Employees become eligible for the employer match once they begin deferring contributions.
Contributions: Employees can contribute on a pre-tax or after-tax (Roth) basis, up to the IRS annual limits. For 2022, the maximum employee contribution was $20,500, and it increased to $22,500 in 2023. Employees aged 50 and older can make catch-up contributions, with limits of $6,500 in 2022 and $7,500 in 2023. The company offers a match of 100% on the first 4% of eligible contributions and 50% on the next 2%.
Vesting: Employees are immediately vested in all 401(k) contributions and any earnings from these contributions.
Restructuring Layoffs and Benefits Changes: Five Below has been focusing on optimizing its workforce as part of a broader strategy to maintain its competitive edge in the retail market. This has included targeted layoffs aimed at streamlining operations, particularly in underperforming locations. The company has also been reviewing its employee benefit structures, including adjustments to retirement plans to better align with current economic conditions. These changes are part of a proactive approach to manage costs while continuing to invest in growth areas like e-commerce.
Company Name: Five Below
Stock Options and RSUs Available: Five Below offers stock options and RSUs to eligible employees, including executives and senior management. The RSUs are granted based on performance and tenure.
Eligibility: Five Below typically awards stock options and RSUs to high-performing employees and those in key positions. Employees must meet certain performance metrics and tenure requirements to qualify.
Company Name: Five Below
Stock Options and RSUs for 2022: In 2022, Five Below granted stock options and RSUs to various employees, focusing on those who significantly contributed to the company's growth. The vesting schedule for RSUs is often tied to continued employment over a few years.
Source: [Five Below 2022 Annual Report, Page 58]
Company Name: Five Below
Stock Options and RSUs for 2023 and 2024: For 2023 and 2024, Five Below continued offering stock options and RSUs, with increased emphasis on aligning employee incentives with company performance. The specific terms of these grants were detailed in their annual filings and shareholder communications.
Source: [Five Below 2023 Proxy Statement, Page 42]; [Five Below 2024 Annual Report, Page 65]
Sources:
Five Below 2022 Annual Report, Page 58
Five Below 2023 Proxy Statement, Page 42
Five Below 2024 Annual Report, Page 65
Five Below offers a range of health benefits to its employees, tailored to different needs and employment statuses. Full-time employees can choose from multiple health plans, including High Deductible Health Plans (HDHP) and Exclusive Provider Organization (EPO) plans, each with varying levels of coverage and copays. For example, the EPO plan now features reduced copays, with visits to primary care doctors costing $20 and specialist visits $40. There is also an emphasis on preventive care, with certain plans covering preventive services at 100%.
Additionally, Five Below provides access to telemedicine services through CirrusMD, which allows employees to consult with physicians 24/7 via secure video chat or phone. This is part of their partnership with Cigna, which also includes pharmacy benefits. The company has introduced new wellness initiatives like Wellbeats, which offers on-demand workouts, mental health classes, and nutrition education.
/General/General%2012.png?width=1280&height=853&name=General%2012.png)
-2.png?width=300&height=200&name=office-builing-main-lobby%20(52)-2.png)
-2.png)
