To avoid any issues with the Internal Revenue Service, it’s important to review and follow your company’s policies regarding moonlighting. But what exactly is moonlighting? Here’s a brief overview of everything you need to know about it, whether you’re an employer or an employee looking to moonlight on the side.
What is Moonlighting?
Moonlighting is when an employee works a second job in addition to their day job. An employee moonlight typically does not work more than 40 hours a week, but there are some exceptions. Plus, it's usually legal so long as they're not neglecting their duties at either job. For instance, if an employee has two jobs that require 10 hour days and they do both of those jobs one after another without taking any breaks, this would not be allowed.
What are the Benefits of Employee Moonlighting?
One major benefit of employee moonlighting is having extra money to pay off debt or save for retirement or emergencies. Other benefits include more experience doing different types of work and developing skills outside your field.
Additionally, employee moonlighting can help keep you active and mentally sharp. On the other hand, employee moonlighting can increase stress levels because of juggling two separate careers. In fact, 70% of employees who engage in full-time moonlighting say that the additional pressure affects their moods at home with family members.
The Pros and Cons of Moonlighting
Moonlighting is a form of employee moonlighting in which an employee performs work for a different employer than their primary employer. There are benefits and drawbacks to doing this, but it's important to know your legal rights as an employee before you decide.
The pros are that you will have more experience and income with two different employers, while being able to retain your current job. The cons are that you may not be paid as much and there is no guarantee that both jobs will be steady. Employers should also take caution when they hire an employee who has been moonlighting because they may be taking someone away from another company or position.
However, hiring employees who moonlight is beneficial because they tend to be motivated by money. They are typically willing to work long hours at one job because they want extra money to support themselves outside of their 9-5 gig. Employees who moonlight typically make up for any lack of sleep with coffee breaks during lunch or at some point after work hours.
How to get started with Moonlighting
Employee moonlighting is a fantastic way to bring in some extra money, but it can also have its drawbacks. First, there are some restrictions that employers impose when they learn that an employee is moonlighting. For example, they may restrict their employees from using company resources and/or time for their personal business ventures. Additionally, they may prohibit any sort of promotions or outside activities while still employed by them.
What to keep in mind when Moonlighting
Employees moonlights when they want or need a second job. However, it is important to know that moonlighting as an employee comes with risks and is not always a good idea. For instance, one risk of moonlighting is that some people may get called in for their second job while they are at their first. This can create a difficult situation where you have two bosses and must be available at all times. Another issue arises when employees moonlight if there are different pay rates. For example, someone who works from 8-5 would make more money than someone who is working from 5-1. Yet another problem could arise if there is a discrepancy between work ethics for both jobs. The employee may feel pressure to perform better at his second job even though he has already worked ten hours today. The employee might also feel as though he cannot focus on his primary job because of work at his second job. An additional concern arises when employees moonlight due to the possibility of being unable to go back and forth between two jobs without taking breaks in order to stay sharp.
Tips for success with Moonlighting
Moonlighting can be a great way to supplement your income, but it is important you know your rights as an employee and that you are properly reporting any earnings.
- Don't forget about taxes or other benefits like health care.
- Here are some tips for success with moonlighting:
Don't work more than 20 hours per week outside of your normal job without written approval from your employer. - If you plan on working overtime while moonlighting, make sure you get paid time-and-a-half.
- Be sure to report all your wages and pay all the appropriate taxes.
- Ask questions before signing anything so you understand what your responsibilities will be with both employers.
Be clear about how many hours you're expected to work in each position, how often you'll be expected to take vacation days, whether there's potential for promotion in one or both jobs, etc. In addition, ask if your employer provides any additional perks – such as health insurance – when they're paying someone else who works in their company.
SOURCE: Moonlighting: All You Need to Know About It
