Category Archives: Banking

Retirement Benefits and Options

There are many different ways that you can save for retirement. There’s always the old-fashioned way of hiding money in your mattress, but there are probably some better ways to save for retirement that will also save you on your income taxes as well. Here we will briefly explain some of your options and their advantages and disadvantages. These options will vary depending on whether you are just saving for yourself individually or if you are a business owner and want to set something up for the employees of your business.

General princilple is look for a financial representative in your area. These individual will help you start your retirement fund, along with this they will help you plan to pay off your student loan faster, start a money market account for emergency, and so much more. These services are usually free, the only that will cost you would the money for your investment. When you have a regular job, it is highly recommend that you start a 401k plan in the company that you’re with (if they have it), put in the highest percentage the company allow…some company match dollar for dollar.

Retirement planning for Individuals

The best and most convenient way for individuals to save for retirement is usually to participate in a retirement plan sponsored by their employer. If your employer does not have a retirement plan, or if you want to save some money for retirement in addition to what is in your employer’s plan. Keogh is a retirement account for self-employed individuals. You can choose to setup any of the plans that are available for businesses to setup.

Retirement Plans for Businesses

Following is a listing of some of the different types of retirement plans you can setup for your business:

Simple IRA which allows employees to contribute, similar to a 401k plan.

SEP-IRA (Simplified Employee Pension) – This is very similar to a SIMPLE plan, except that only the employer makes contributions.

Defined Contribution – The employer determines a set formula to calculate how much will be contributed every year, such as 15% of eligible employee’s wages. These plans are very flexible and can have a wide range of options

Remember this, they are just sales people trying to sell you what their firm is pushing. They are not security analysts or financial planners, not even financial advisers. Trust me, I know from experience that they cannot be trusted especially with a million dollars. You risk losing it all. A million dollar account is known as a “whale” and they would love to get their greedy little paws on it and suck it dry. The retirement area can be quite confusing, and there are specific requirements for each of these plans. The most important thing is to start saving something for retirement, even if you can only save a small amount each month.

Tips for retirement planning

best way is to open an account at a no load fund company like troweprice, vanguard or fidelity, then start a roth ira once you put money in you are not taxed ever again, in retirement you take it out tax free

easiest way is to by a life cycle fund, tell them what year you plan to retire and they adjust it for you as you age-aggressive now then more conservative as you get older.

When investing in mutual funds, select the no-load funds only. Do not invest in mutual funds with a “load”, an up front commission that you have to pay before when they sell you the mutual fund.

You need fast growing good stocks with good earnings and in good sectors. You need to learn more about the stock market before you even think about investing in it.

The stocks world is divided into 12 sectors such as energy which chevron belongs to. It is next to last in the sectors list today.

Technology is numero uno, but things can change in a new york minute, but within the sector, the fastest growing are computer services, not Microsoft. Then, Electronic Instruments and controls. Next is computer storage devices.

This is a life-long learning process. Reading books and applying the rules to analyzing stocks that may be good takes time. Be patient and keep reading and listening. Depend on no one except yourself. You can only get smarter and stronger that way.

Top Paye Questions Answered

Employers and especially new employers who may not be experienced with operating a payroll system enter a business area with tax rules and procedures with which they may not be familiar. The most common questions asked by employers who are operating or about to operate a PAYE scheme are here

What is an income tax code?

An income tax code is a reference number which may also include letters or be entirely letters which determines the amount of gross pay which is free of income tax deductions and may also determine the way in which income tax should be deducted. If the tax code contains a number this number represents the amount of tax free income an employee can earn in a financial year, for example 522L means an employee has a tax free personal allowance of 5,225 pounds. A tax code of BR means all the employee gross pay should be taxed within the PAYE scheme at the basic rate of income tax.

What does week 1 of month 1basis mean?

Week 1 and Month 1 basis is an instruction to the employer operating a PAYE scheme to not calculate the income tax on a cumulative basis which is the normal basis but instead the employer has to calculate the income tax to be deducted on a non cumulative basis. A non cumulative basis is the total gross pay for that week or month excluding any previous pay in earlier pay periods regardless of whether that previous gross pay was paid by the current or a previous employer.

Because the income tax is deducted on the gross pay in a specific pay period an employee on a week 1 or month 1 basis does not receive an income tax refund in respect of previous tax deductions. Normally an employee is placed on a week 1 or month 1 basis when the tax deductions history for the current financial year are incomplete and the week 1 month 1 basis is removed when the missing history is determined

Do I deduct income tax and national insurance if a new starter says they are self employed?

The decision as to whether a worker is an employee or self employed rests with the employer responsible for the PAYE administration. If that worker is determined to be an employee then income tax and national insurance deductions must be deducted from payments made to that employee.

If the employer decides that the worker is self employed then no income tax or national insurance deductions should be made from the payments. But it is not as simple as that and any employer who has doubts should clarify the position with the local Inland Revenue helpline. A wrong decision by the employer could be very costly and strict rules are enforced.

There are numerous conditions which are applied to determine if a worker is an employee or self employed and several years after that worker joined the business the potential tax liabilities can come back to haunt the employer. The tax authority can invoke a number of conditions any one of which if proved can result in the tax authority deciding the status of a worker is that of employee and not self employed.

When the status of a worker is determined by the tax authority to be employee and not self employed the employer will incur a liability for income tax and national insurance that should have been deducted from the employee and also a liability for employers national insurance contributions. The liability being increased as the Inland Revenue will determine that the amount paid to the employee was a net wages payment after deductions and the perceived gross pay thereby enhanced.

As the income tax and national insurance contributions may not be practically recoverable from the employee and the calculation would be applied retrospectively to previous years employment the cost to an employer can be considerable.

When should national insurance contributions be deducted from an employee?

National insurance must be deducted from all employees who are over the age of 16 and under the state retirement pension age of 60 for a woman and 65 for a man. Equality of employment does not apply to government legislation on equality of employment between men and women where national insurance contributions and pension payments are concerned.

In addition national insurance should only be deducted from an employee wage or salary if that income is at or above the national insurance earnings threshold. The earning threshold usually changes each year and should be checked in case of doubt with the current tax thresholds applicable.

What do I do if my new employee does not give me a P45?

If the new employee either does not possess or has lost the P45 from a previous employee then the employer operating the PAYE scheme must still deduct tax and national insurance from any wages payments made to that employee and also advice the Inland Revenue to establish the tax status of the employee. If the employee does not have a P45 the employer must complete a P46 and send the P46 to the Inland Revenue without delay. Following receipt of the P46 the Inland Revenue will notify the employer of the income tax deductions to be made.

In the period from when the employee commences employment and notification of the employee tax status is received the employer should adopt a week 1 or month 1 status for that employee and also use an emergency tax code. The emergency tax code would be the standard personal allowance for that tax year.

Is a medical certificate required before statutory sick pay payments are made?

It is advisable for an employer to obtain from an employee written documentation of sickness. This documentation can be in the form of self certification which should be filed as part of the PAYE administration. If an employee satisfies all the conditions to receive statutory sick pay and there is no reason for the employer to doubt the claim then strictly speaking statutory sick pay can be paid without medical evidence.

How as an employer do I fund working tax credits?

Working tax credits an employer may pay to an employee is deducted from the PAYE and other deductions that employer has made and is payable to the Inland Revenue. Eligible deductions include deductions from employees in respect of income tax, national insurance, student loans and CIS deductions and employer national insurance contributions. If the deductions are insufficient to cover the tot6al working tax credit to be paid to an employee the employer can apply to the Inland Revenue who will fund the shortfall.

Why the employer is charged penalty fines when the accountant submits the tax returns?

Penalty fines are chargeable to the employer responsible for submission of the annual PAYE tax returns. The responsibility for submitting the tax returns on time to avoid penalties may be delegated by the employer to the accountant. That is regarded as an internal arrangement between the parties which is not recognised by the income tax regulations with the employer always retaining the ultimate responsibility for submitting tax returns on time.

Information about Personal Loans ,how to get it?

Personal Loans

In finance, Personal Loans refers to any type of debt or all-purpose liabilities that is not collateralized by a lien on exact possessions of the borrower in the case of a economic failure or bankruptcy.

In the incident of the bankruptcy of the borrower, the unsecured creditors will have a general claim on the property of the borrower after the detailed pledged assets have been assigned to the protected creditors, while the unsecured creditors will frequently comprehend a smaller amount of their claims than the protected creditors.

In some officially authorized systems, unsecured creditors who are also in somebody’s debt to the ruined debtor are able (and in some jurisdictions, necessary) to set-off the debts, which actually puts the unsecured creditor with a qualified liability to the debtor in a pre-preferential pose.

We need to know the best way to find the system of personal loans . The major part of personal loan is Student Loans

Student Loans

A student loan is calculated to help students pay for university tuition, books, and living operating cost. It differs from other types of loans in that the interest rate is considerably lower and the repayment plan is deferred while the student is still in education. Before tolerant any kind of student loan one should be well-known with its basic characteristics.It is often more difficult to emancipation a student loan in the USA in the case of bankruptcy. The legislation which covers this is 11 USC 523. This often means that student loans survive a economic failure unless the bankrupt can display “undue privation”.

more will find on USA Mortgage Rates