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greecegreekreporterpost · 9 years

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How bad are things for the people of Greece?

The people of Greece are facing further years of economic hardship following a Eurozone agreement over the terms of a third bailout.

The deal included more tax rises and spending cuts, despite the Syriza government coming to power promising to end what it described as the "humiliation and pain" of austerity.

With the country having already endured years of economic contraction since the global downturn, just how does Greece's ordeal compare with other recessions and how have the lives of the country's people been affected?

The long recession

It is now generally agreed that Greece has experienced an economic crisis on the scale of the US Great Depression of the 1930s.

According to the Greek government's own figures, the economy first contracted in the final quarter of 2008 and - apart from some weak growth in 2014 - has been shrinking ever since. The recession has cut the size of the Greek economy by around a quarter, the largest contraction of an advanced economy since the 1950s.

Although the Greek recession has not been quite as deep as the Great Depression from peak to trough, it has gone on longer and many observers now believe Greek GDP will drop further in 2015.

Dwindling jobs

Jobs are increasingly difficult to come by in Greece - especially for the young. While a quarter of the population are out of work, youth unemployment is running much higher.

Half of those under 25 are out of work. In some regions of western Greece, the youth unemployment rate is well above 60%.

To make matters worse, long-term unemployment is at particularly high levels in Greece.

Being out of work for significant periods of time has severe consequences, according to a report by the European Parliament. The longer a person is unemployed, the less employable they become. Re-entering the workforce also becomes more difficult and more expensive.

Young people have been particularly affected by long-term unemployment: one out of three has been jobless for more than a year.

After two years out of work, the unemployed also lose their health insurance.

This persistent unemployment also means pension funds receive fewer contributions from the working population. As more Greeks are without jobs, more pensioners are having to sustain families on a reduced income.

According to the latest figures from the Greek government, 45% of pensioners receive monthly payments below the poverty line of €665.

Plummeting income

The Greek people are also facing dropping wages.

In the five years from 2008 to 2013, Greeks became on average 40% poorer, according to data from the country's statistical agency analysed by Reuters. As well as job losses and wage cuts, the decline can also be explained by steep cuts in workers' compensation and social benefits.

In 2014, disposable household income in Greece sunk to below 2003 levels.

Rising poverty

Like during all recessions, the poor and vulnerable have been hardest hit.

One in five Greeks are experiencing severe material deprivation, a figure that has nearly doubled since 2008.

Almost four million people living in Greece, more than a third of the country's total population, were classed as being 'at risk of poverty or social exclusion' in 2014.

According to Dr Panos Tsakloglou, economist and professor at the Athens University of Economics and Business, the crisis has exposed Greece's lack of social safety nets.

"The welfare state in Greece has historically been very weak, driven primarily by clientelistic calculations rather than an assessment of needs. In the past this was not really urgent because there were rarely any particularly explosive social conditions. The family was substituting the welfare state," he told the BBC.

Typically, if a young person lost his or her job or could not find a job after graduating, they would receive support from the family until their situation improved.

But as more and more people have become jobless and with pensions slashed as part of the austerity imposed on Greece from its creditors, ordinary Greeks are feeling the impact.

"This has led to many more unemployed people falling into poverty much faster," Dr Tsakloglou said.

Cuts to essential services

Healthcare is one of the public services that has been hit hardest by the crisis. An estimated 800,000 Greeks are without medical access due to a lack of insurance or poverty.

A 2014 report in the Lancet medical journal highlighted the devastating social and health consequences of the financial crisis and resulting austerity on the country's population.

At a time of heightened demand, the report said, "the scale and speed of imposed change have constrained the capacity of the public health system to respond to the needs of the population".

While a number of social initiatives and volunteer-led health clinics have emerged to ease the burden, many drug prevention and treatment centres and psychiatric clinics have been forced to close due to budget cuts.

HIV infections among injecting drug users rose from 15 in 2009 to 484 people in 2012.

Mental wellbeing

The crisis also appears to have taken its toll on people's wellbeing.

Figures suggest that the prevalence of major depression almost trebled from 3% to 8% of the population in the three years to 2011, during the onset of the crisis.

While starting from a low initial figure, the suicide rate rose by 35% in Greece between 2010 and 2012, according to a study published in the British Medical Journal.

Researchers concluded that suicides among those of working age coincided with austerity measures.

Greece's public and non-profit mental health service providers have been forced to scale back operations, shut down, or reduce staff, while plans for development of child psychiatric services have been abandoned.

Funding for mental health decreased by 20% between 2010 and 2011, and by a further 55% the following year.

The brain drain

Faced with the prospect of dwindling incomes or unemployment, many Greeks have been forced to look for work elsewhere. In the last five years, Greece's population has declined, falling by about 400,000.

A 2013 study found that more than 120,000 professionals, including doctors, engineers and scientists, had left Greece since the start of the crisis in 2010.

A more recent European University Institute survey found that of those who emigrated, nine in 10 hold a university degree and more than 60% of those have a master's degree, while 11% hold a PhD.

Foteini Ploumbi was in her early thirties when she lost her job as a warehouse supervisor in Athens after the owner could no longer afford to pay his staff.

After a year looking for a new job in Greece, she moved to the UK in 2013 and immediately found work as a business analyst in London.

"I had no choice but leave if I wanted to work, I had no prospect of employment in Greece. I would love to go back, my whole life is back there. But logic stops me from returning at the moment," she said.

"In the UK, I can get by - I can't even do that in Greece."

#greecenews #jobsingreece

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accountingsoftwareforsale-blog · 4 years

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Helpful Hints for Selecting The Right Accounting Solutions Ideal for Businesses

Business owners are sometimes overwhelmed by the responsibilities before them. Beginning with employee management to making sure the accounting books are saved in order and a lot more while the time to do all these tasks is shortened each day. Finding an accounting solution is the best in streamlining your business operations. The primary reason behind getting the best accounting solutions is to help you in bookkeeping services to do accounting as it should be done as well as keep track of the amounts coming in or out. We all know that business owners are quite busy, and while it is not easy to get one accounting solution, you can have programs that will assist in improving productivity while still going up the daily chores, and always be able to draw new business to you and keep track of what you have and have made. Discover more about accounting here.

Setting up an accounting solution should not be difficult to set up. This includes having the details of the first installation and any other upgrades done for purposes of security. Installing an accounting solution may require support or when the application is running which should be given by the seller. Installing accounting installations may require support either online or through telephone inquiries. How to use the installed accounting solution must be demonstrated using the interface with the drawn icons showing how it works.

Integration is another accounting solution important in a business. An employee’s contact details should be obtained from the records system, and there should be an integration of the bank accounts for salaries purposes in line with the hours worked and vacancies should be easily noted. Worked hours should be analyzed according to the entry and time entered by the employees. Holidays, leave, and insurance are employee provisions that the management has to input. The setup accounting solution should calculate the provided raw data. The management’s effort in calculating payroll will be reduced through the installation of an accounting solution. Discover more about this accounting solution now.

In matters of filing taxes for the end of the year, the job of the accounting solution is to calculate after the rates have been input by the management. Different contributions done by the employer, social security tax, state unemployment insurance among others will may change per year meaning the accounting solution should update the rates to comply with the law. Additionally, businesses can have different offices in different towns meaning the rates are different from one state to the other so the installed accounting solution must be able to accordingly calculate the rates. When payments are due or when invoices should be paid should be contained in the accounting solution you intend to install in your business. Click here for more details: https://en.wikipedia.org/wiki/Financial_accounting.

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escalonservices · 3 years

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1099: A record that an entity or person that is not your employer paid you money. Freelancers and independent contractors often get a 1099-MISC or 1099-NEC from their clients to reflect payment.

ACA: More often referred to as Obamacare. Signed into law by President Barack Obama in 2010, it includes policies intended to extend health insurance coverage to millions of uninsured Americans through initiatives such as expanding Medicaid eligibility and launching a healthcare marketplace.

ACH: Automated Clearing House, a network that coordinates electronic payments and automated money transfers. ACH is a method for moving money among banks without using cash, a wire transfer, physical check or credit card network.

Americans with Disabilities Act (ADA): The Americans with Disabilities Act of 1990 or ADA is a civil rights law that prohibits discrimination based on disability.

Applicant tracking system: Software that enables electronic handling of hiring needs.

At-will employment: An at-will employee can be fired at any time and for any reason, with a few illegal exceptions. The employer doesn’t need good cause to terminate your job. Federal exceptions are firing an employee for obeying the law, or if oral or written policies imply a certain termination policy or job security.

Background check: Also referred to as pre-employment screening; may comprise screening services like a drug screening, skills assessment and behavioral assessment tools. A background check also verifies factual information about prospective hires, such as their identity, education and work credentials. It may also include a criminal history check, credit history check or driving record check.

Benefits: Benefits are a form of compensation paid by employers to employees over and above the amount of pay specified as a base salary or hourly rate of pay. Benefits are a portion of a total compensation package for employees.

COBRA: Consolidated Omnibus Budget Reconciliation Act of 1985 mandates employers with 20 or more employees that offer health care benefits must offer a continuing coverage option to those who lose their benefits due to a reduction in hours, termination, etc. COBRA compliance violations can cause significant penalties.

Compensation: The monetary benefit given to an employee or worker providing services to an organization. Compensation includes components like salary and benefits.

Deductions: A payroll deduction plan is when an employer withholds money from an employee’s paycheck and may be voluntary or involuntary. An example of an involuntary payroll deduction plan is employers’ requirement by law to withhold money for Social Security and Medicare. An example of a voluntary payroll deduction plan is when employees opt in for certain purposes, such as saving toward their retirement plan.

Department of Labor (DOL): A federal agency established in 1913, responsible for enforcing federal labor standards and occupational safety.

Direct Deposit: An electronic funds transfer that deposits an employee’s wages directly into their bank account.

Employee (vs. independent contractor): An employee is a person employed for wages or salary. An independent contractor is someone who operates under a business name or under their own name and may have their own employees, a separate business checking account, may advertise their services, provide invoices for work completed, have more than one client, their own tools, establish their own hours and keep their own business records. The IRS defines a person as an independent contractor “if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.” Independent contractors must pay their own Social Security and Medicare taxes.

Equal Employment Opportunity (EEOC): The U.S. Equal Employment Opportunity Commission is a federal agency established by the Civil Rights Act of 1964 to administer and enforce civil rights laws against workplace discrimination.

Essential job functions: This term refers to the fundamental duties of a position: the things a person holding the job absolutely must be able to do. Essential job functions are used to determine the rights of an employee with a disability under the Americans with Disabilities Act (ADA).

Exempt (and non-exempt) employees: An “exempt employee” refers to a category of employees defined in the Fair Labor Standards Act and applies to employees who don’t receive overtime pay or qualify for minimum wage. When an employee is exempt, it essentially means that they are exempt from receiving overtime pay. Nonexempt employees are those who are entitled to earn the federal minimum wage and qualify for overtime pay.

Exit interview: A survey conducted with an individual who is separating from an organization.

Fair Labor Standards Act (FLSA): A U.S. law meant to protect workers against certain unfair pay practices with regulations pertaining to minimum wages, overtime pay requirements, limitations on child labor and interstate commerce employment.

Family and Medical Leave Act (FMLA): A U.S. labor law enacted in 1993 requiring covered employers to offer employees job-protected and unpaid leave for qualified medical and family reasons.

FICA: The Federal Insurance Contributions Act is a federal law that requires employers to withhold three different types of employment taxes from employees’ paychecks. These comprise Social Security taxes and Medicare taxes.

Full-time (and part-time): Generally, part-time employees work fewer hours than full-time employees. Part-time positions may comprise inconsistent hours, fewer responsibilities and limited benefits. However, the Affordable Care Act deems part-time workers as employees who work fewer than 30 hours per week. There is no universal amount of time specified for part-time employment.

FUTA: An acronym for the Federal Unemployment Tax Act, it is one of the taxes employers have to pay as part of payroll taxes. At the time of publication, the tax is 6% on an employee’s first $7,000; any wages above $7,000 are not taxed.

Garnishment: A payroll garnishment happens when a court issues an order requiring an employer to withhold a certain amount from an employee’s paycheck and send it directly to the organization or person owed money, until the debt is fully paid.

Gross pay: This is the amount of money owed to an employee before withholding taxes and other deductions.

Hourly: If an employee receives hourly wages rather than salary, their pay is dependent on how many hours they have worked during that pay period.

Imputed income: The value of non-monetary compensation given to employees in the form of fringe benefits. This income is added to an employee’s gross wages so employment taxes can be withheld.

Income tax: A type of tax governments impose on income generated by businesses and individuals within their jurisdiction. Business income taxes apply to corporations, partnerships, small businesses, and people who are self-employed. Personal income tax is a type of income tax that is levied on an individual’s wages, salaries, and other types of income.

Minimum wage: The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws.

Net pay: An employee’s earnings after all deductions are taken out.

Non-compete agreement: A written legal contract between an employer and employee that establishes terms and conditions about the employee’s ability to work in the same industry and with competitors upon termination of employment.

Nonexempt: Workers who are entitled to earn the federal minimum wage and qualify for overtime pay.

Occupational Safety and Health Administration (OSHA): The federal agency responsible for enforcing workplace safety rules. HR teams often oversee OSHA compliance.

Overtime: Employees who work more than 40 hours a week are entitled to a higher rate of pay for the additional work. This is termed overtime pay. Federal overtime laws require employers to pay certain employees who work more than 40 hours in a week at least time and a half for the extra time.

Pay period: A recurring length of time over which employee time is recorded and paid.

Payroll: Payroll is the function of a business paying its employees. Payroll processing involves calculating total wage earnings, withholding deductions, filing payroll taxes and delivering payment

Performance review: A formal assessment in which a manager evaluates an employee’s work performance, identifies strengths and weaknesses, offers feedback and sets goals for future performance.

Quarterly federal taxes: If the IRS classifies you as self-employed, you are required to file an annual federal income tax return and pay estimated quarterly taxes on Form 1040-ES, Estimated Tax for Individuals. Estimated quarterly taxes are a prepayment of Social Security, Medicare and federal income taxes that self-employed individuals must pay because these workers do not have an employer to withhold taxes from a payroll check. The requirement to pay taxes quarterly ensures that you don’t let your tax obligation get away from you and end up unable to pay your taxes when you file your annual return.

Reimbursements: Money paid back to an employee who made an out-of-pocket expense to achieve company goals.

Taxable Income: The portion of your total income that can be taxed. Generally, it includes some or all items of income and is reduced by expenses and other deductions.

W2: IRS Form W-2 is the annual “wage and tax statement” that reports your taxable income earned from an employer to you and to the Internal Revenue Service (IRS). The form also includes taxes withheld from your pay, as well as Social Security and Medicare payments made on your behalf by both you and your employer.

W4: Employees complete the IRS Form W-4 so employers know how much money to withhold from their paycheck for federal taxes.

Withholding: Payroll tax withholding transpires when employers withhold a portion of an employee’s gross wages for taxes. Payroll withholding is mandatory when you have employees; the amount withheld is based on the employee’s income.

Workers’ compensation: A form of insurance offered to employees when they experience an on-the-job injury. It is mandatory for almost all employers in the U.S.

Originally published at https://blog.escalon.services

#HR Processes and Policies for Startups #Outsourcing HR for Start Ups #outsource hr services for startups #part time hr #hr consultancy services #Hr For Startups #Complete Hr Solutions #Outsourcing HR Department #Outsourcing HR Tasks #outsourced hr services

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cpaclinics · 3 years

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Payroll systems:

What is the payroll?

A payroll is a company's list of employees, but the term is often used to refer to the total amount a company pays its employees. A company's records of its employees' wages and salaries, bonuses and taxes withheld, and the department of the company that calculates and pays them.

What is Payroll Management in Human Resources?

Payroll refers to the process by which employees receive their salary. The functions relate to the comparison and comparison of wage data as well as the filing and archiving of taxes. The wages office is responsible for the wage deductions, bookkeeping and checking the reliability of wage data.

What is the paycheck process?

Payroll involves many activities to ensure accurate and on-time salaries, as well as compliance with payroll taxes and records. Prepare your paycheck in advance. Design a payroll program that will give you enough time to process payrolls and correct any errors found before employees receive payrolls.

What is a payroll system used for?

The Payroll Management System deals with the financial aspects of employee salary, bonuses, deductions, gross salary, net salary, etc. and the payroll for a specific period of time. The outstanding advantage of the Payroll Management System is its easy implementation.

What is payroll software?

Payroll software is the technology that aims to simplify and automate the payment process of a company's employees. Payroll software can be purchased from a human resources technology vendor or integrated as a module in a larger enterprise resource planning.

Components of a payroll system:

To ensure compliance with Internal Revenue Service (IRS) regulations and state and local laws, companies must include critical company and employee information in their payroll systems. The configuration and operation of the different components that make up a payroll management system require due diligence and adequate knowledge of tax legislation.

Salary information:

As part of the hiring process, payroll systems include a component that determines which employees are full-time, part-time, and contractors. Classifying workers in a payroll system is important as the government imposes heavy penalties on companies that classify workers.

Time sheet:

Without knowing the number of hours an employee has worked, employers cannot determine how much an employee should be paid. While some employees are paid, others are paid by the hour or are reported as nonexempt employees. Payroll systems include time registration information or areas where hourly hours and non-exempt hours of employees are recorded and verified for accuracy. Information can be collected through a computer controlled clock, a clock with a punch card stamp, or a paper time sheet.

Applicable Taxes and Deductions

Although the IRS provides companies with tax tables for calculating employee tax deductions, this information can also be provided by suppliers and computer payroll systems. Employers should consider past annual income, salary level, and tax breaks when summarizing applicable taxes. Additionally, payroll systems must calculate deductions made through retirement plans, 401 (k) s, insurance plans, union dues, and foreclosures. The payroll office also monitors credits and other maximum deductions, and stops the paycheck from being withdrawn when the full amount has been paid back.

Payroll

Payroll gathers information about employee earnings and deductions in a journal entry that is posted to the general ledger for general ledger and research purposes. Payrolls are also used to prepare tax reports. These documents are created by payroll employees or generated by accounting systems.

Manual payments

Occasionally, companies issue manual payroll to employees on payroll due to a payroll resolution or error. Payroll systems must include the amount of the check on the payroll for tax reporting purposes. This ensures that the employer's tax deduction matches the employee's deductions.

Payroll refers to the management of salaries, bonuses, net salaries and withholding made by employees. Includes employee ID, employee name, start date, daily attendance record, base salary, allowance, overtime, bonuses, commissions, incentives, vacation and sickness, value of meals and lodging, etc. There are some deductions that include retirement funds (12%) from salary, taxes, and other deductions.

Deductions such as taxes and loans / advances that the employee takes from organizations are only deducted where applicable. Unemployment benefit and housing allowance are granted at a fixed rate determined by labor law. According to the Labor Law, a monthly pension fund is deducted from the employee's gross salary and made available to the employee at a later date. Organizations also pay the same amount to the employee's pension fund.

The annual paycheck consists of travel, incentives, annual bonuses, and medical expense reimbursements. Assignments, incentives, bonuses, and reimbursements are based on organization policies. Some organizations have provided subsidies at a fixed rate, such as 10% or 12% of base salary. Some organizations use performance-based incentives.

What is Payroll Outsourcing?

The outsourcing industry is growing faster. Human resources outsourcing helps HR professionals break free from everyday life and participate in strategic processes. Organizations don't really see human resources as a strategic function; it is simply treated as part of the documentation. Therefore, they want to reduce the cost of HR activities.

Payroll outsourcing involves an external organization that carries out all payroll related activities. Outsourcing companies strive to offer their customers cost-saving benefits. Companies use their

marketing department intensively to acquire and retain more customers. Payroll outsourcing doesn't involve big cost savings, but it pays off with high quality. As offset outsourcing requires a lot of market research and industry knowledge, it's not easy for a company to get the job done with their operations.

Outsourcing has not only benefited the service providers but also the organizations and the economy of the country. It allows management to focus on core competencies and strategic planning. It maintains the confidentiality of the compensation package offered to employees as it is managed by an external agency. Companies do not need to familiarize themselves with the payroll and benefits law it is the outsourcing company that has to take care of it. It offers qualitative results. It is much cheaper and saves time. It also provides legal protection as the outsourcing company is responsible for all legal matters.

Outsourcing companies enjoy income advantages by providing services to multinational companies. Exports of services have developed the economic system more strongly and contribute to GDP growth.

#employer services #payroll accounting

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davidrusselblr · 3 years

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How To Choose the Right Payroll Software in Saudi Arabia. A Complete Guide for SMEs & Startups

PeopleQlik #1 Payroll Software in Saudi Arabia Payroll involves more than merely paying employees' salaries for the hours they work. Employee pay and deductions, such as income tax rates, Medicare, allowances, and more, are all included. Payroll calculation for SMEs (small and medium businesses) can be a time-consuming process. A poorly managed payroll program can stifle production and irritate workers.

Employee salaries must be paid on time and without faults. An employee who gets paid a salary is a happy employee. However, things do not always go as planned. The following are some of the reasons why salaries may be delayed.

Payment processing has been delayed.

Payroll calculations that are incorrect

Insufficient resources

Peopleqlik #1 Payroll Software in Saudi Arabia

Payroll software in Saudi Arabia and operations that are inefficient are symptoms of a corporation that is inefficient.

What is a Payroll in Saudi Arabia and What Does It Do?

Payroll processing ensures that employees are paid on time and with the appropriate deductions. The HR department and payroll personnel are in charge of paying employees in accordance with local tax rates and company policies. Small business owners are more likely to use a manual payroll system. They engage in payroll outsourcing, which is contracting with a payroll service provider to supply wage computations.

However, with the correct payroll software in Saudi Arabia for small and medium-sized firms, this may be done by an in-house human resources staff. It's possible that a payroll company is unfamiliar with your company's policies. As a result, payroll software with outsourced services may be just what you need as a business.

If you're trying to decide between in-house payroll versus payroll outsourcing. With that in mind, let's quickly go over the various stages of payroll processing:

Establishing Payroll Policies: Because a salary is a fundamental entitlement of an employee, the first stage of the payroll cycle is to establish the appropriate payroll policy. Part-time and contract-based employees may have different payroll software in Saudi Arabia and taxes than full-time employees.

Hourly employee agreements, independent contractors, and freelancers may all have different wages and payroll taxes.

Understanding the Different Parts of a Salary:

Fixed and variable components are bifurcated into salary components. These are based on a variety of tax forms, including the W 4, which lists your employees' payments. Aside from that, several forms are depending on an employee's position. Deductions and benefits are two more types of payroll components. Bonuses, employee benefits, voluntary deductions, wage garnishments, health insurance plans, retirement plans, life insurance, HRA, and other benefits are all examples. Personnel who are exempt in specific circumstances may be present, as well as nonexempt employees.

Obtaining Inputs: Obtaining inputs for employee paychecks takes time. This monthly process must be efficiently managed while keeping the company's size in mind. Loans, travel expenditures, extra shift charges, paid leave, commission, relocation expenses, and other expenses are all examples of inputs.

Input Validation: The collected data is subsequently validated to eliminate any potential inaccuracies at a later stage. This is an important step because you will only be looking at data from current employees in your company.

Creating Payroll Procedures: We begin the actual payroll scheme after these pre-tax deductions. Payroll software in Saudi Arabia should be regularly supervised by department experts to avoid any potential duplication or errors.

Completion of Statutory Requirements: Employers must deduct mandatory tax contributions from employee earnings from both the state and federal governments. Late and non-payments can result in tax penalties, therefore this is an important part of payroll management. Some examples of payroll deductions are:

For the United States of America (and relevant countries)

Income taxes, both federal and state

The cost of union dues

Unemployment insurance taxes

Payroll taxes for Social Security

Local taxes that aren't included elsewhere

Disclaimer: The deductions listed above are only a few. For proper deductions, please contact a payroll specialist.

Employers and employees both benefit from these tax breaks. Your company is required to file.

How is payroll handled in most startups and small businesses?

Excel-based payment processing:

Payroll software in Saudi Arabia is still done on excel sheets by a big number of small businesses. Until you have fewer than ten employees, it may be a convenient practice. When you have more than ten employees, data processing on an excel sheet might become a tedious operation. There are certain disadvantages to using an excel sheet.

Data input is done by hand.

Data processing is done by hand.

Errors in calculation and clerical work.

Statutory compliances must be entered on a regular basis.

Adding and deleting entries by hand.

Payroll Services Outsourcing

Outsourcing, as previously discussed, is another method of payroll processing. However, from time to time, the corporation must exchange data, policies, and deductions with a third party. The risk of disclosing personnel records to a third party is high. Not to mention that using payroll outsourcing services incurs additional expenditures.

Payroll software in Saudi Arabia can thus be used to manage payroll for small firms. Trying to decide whether to outsource payroll services or keep payroll in-house. This blog will assist you in getting started.

Payroll software in Saudi Arabia is a program that Human Resource Departments (HRs) or payroll teams use to keep track of the whole life cycle of payroll procedures. Payroll software must be tailored to the needs of a company, bringing together all the loose ends of inputs, validation, processing, and checks on a single platform.

Payroll software for SMEs provides a comprehensive payroll processing experience. In terms of payroll, Human Resource Management Software (HRMS) might give you an advantage. As a result, dependable payroll software simplifies the processing of large amounts of data, eliminates reliance on external third-party resources, and provides a professional solution.

Payroll software and its applications include:

Here are some examples of payroll software applications that may be appropriate for your business.

The program can store and process massive amounts of data and can be scaled up to handle more.

Because the procedure is automated, each form and input is tailored to your current policy. There is no need to manually enter data for payroll processing if your organization already has HR software or an online payroll. By identifying and rectifying problems, the automated payroll system can also serve as accounting software. As a result, you can take advantage of technology to save time and effort in the payroll process.

End-to-end solutions are those that cover all aspects of a project.

From policy creation through government payments and paycheck slips, the software provides all-in-one payroll services.

This ensures entire process control and a single-window approach.

Payroll Software's Advantages

Payroll software has a number of advantages for both firms and employees.

Payroll software can help you save money on paper-based payroll procedures. An effective payroll system can assist you in investing your company's savings in growth.

Manually calculating payroll on a monthly basis is time-consuming and inconvenient. Through its automated operations, the program can save all of this time.

Any margin for human error is eliminated with computer-based applications. Whether you work for a small business or a large corporation, your personnel data will be calculated correctly.

Payroll software allows you to save any amount of data and retrieve it whenever you need it. Your annual reports and pay stubs will be kept safe.

Here is the list of features that you can get by using PeopleQlik:

PeopleQlik Core

Core HR Software -HRMS

Cloud Payroll Management Software

Employee Self Services

HR Analytics Software

Corporate Wellness Platform

Performance Management Software

360-degree feedback form

Compensation Planning & Administration

Social Recognition

Workforce Administration

Leave Management Software

Time and Attendance Management Software

Shift & Scheduling

Claims & Reimbursements

Time-sheet Management Software

Click to Start Whatsapp Chatbot with Sales

Mobile: +966547315697Email:

[email protected]

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losealmos · 3 years

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CAPITAL MARKET PROCEDURE AND MECHANISM IN TURKEY

INTRODUCTION

Capital flows to major emerging market economies are important for the welfare of global financial markets. More financial integration is constantly increasing both in gross capital inflows and exits from emerging money economies. Although the structure of flows has become more stable, capital flows continue to be very volatile, which has significant macroeconomic impacts for the recipient countries. The size and structure of the inputs are largely influenced and greatly influenced by the state of development of the local financial markets. The benefits and costs of capital market integration and regulation have become a controversial issue among academics and policy-makers. The rapid growth of capital movements around the global capital markets and the needs of emerging capital have forced market economies to improve the capital markets of these economies to attract a larger share of global portfolio investments. In order to keep up with the global growth and capital movements in the world, capital markets are regulated and investors' interest in the Turkish capital markets is primarily under the responsibility of the Capital Markets Board (CMB) in Ankara, Turkey. As a result, the regulation of capital markets in Turkey, first of all the participants (residents and non-residents) and is designed to create a basis for trust in the integrity of the market. The role of CMBT in this regulatory environment is to make the market more reliable and efficient by establishing it. To implement the principles of honesty and trust and to prevent the activities of illegal actions that damage investor confidence. The main legislation regulating the capital markets, Capital Market Law in Turkey, participation arrangements made under this Act, notification and decisions. These regulations have been in force since the establishment of CMB and many amendments have been made by the Capital Markets Board (CMB). Detailed arrangements for the regulation of markets and the development of capital market instruments and equipment. The purpose of KML is to oversee and ensure the safe, fair and regular functioning of capital markets while protecting the rights and interests of investors. Capital market instruments CMB, capital market activities, capital market institutions and the proposals and sales foreseen in the capital structure, issuers, exchanges and other organized markets are subject to the CML provisions of the Markets Board. The corporate investor sector in the Turkish Capital Market consists of mutual funds, pension funds, investment companies and real estate investment partners. In order to increase product diversity, make long-term investments and expand the institutional investor base, new instruments such as hedge funds, guaranteed and protected funds, fund funds, stock exchange mutual funds and warrants have been launched.

Growth and Employment

After a growth rate of 7.2% in the period 2002-2006, after a strong growth of 5 years, GDP growth started to slow down after 2007 with the deterioration of the international environment. The deterioration in external financing conditions, foreign trade and the weakening of confidence in Turkey's economy with instability, the global crisis has affected the economic activity shrinking by 4.8% in 2009. Nevertheless, economic activities started to recover gradually as of 2009 and the GDP growth was 8.9%. In 2010, he was driven by private consumption. GDP per capita increased by 17% to US $10,079 in US$.

GDP increased by 10% compared to 1H2010 on a relatively low basis, while the relative improvement in output continued at 1H2011. Annual figures indicate a real increase of 8.6% compared to the previous year. Overall, the economy is expected to grow by approximately 6% in 2011.

Despite the high growth rates in GDP, the unemployment rate is above 10% before the global crisis. With the deterioration in domestic and foreign demand conditions, the average annual unemployment rate rose to 14% in 2009. The sharp recovery in domestic demand helped the unemployment rate fall to 12% in 2010. The improvement in the labor market continued in 2011 as well. In 2Q2011, the seasonally adjusted rate approached the pre-crisis level by around 10%. Although the labor force participation rate is limited to around 50%, it should be noted that it is gradually increasing.

Public Finance

The combination of fiscal discipline and significant privatization efforts has led to a significant improvement in the budget primary balance by 2006. Declining interest payments reflecting the decline in risk premiums contributed to the reduction of the budget deficit and public debt.

However, financial performance has begun to deteriorate as of 2007. After the global crisis, primary surplus declined to 0.1% of GDP (3.5% in 2008) in 2009, while the general budget deficit declined to 5.5. % (From 1.8%).

In 2010, budget targets stronger than expected economic recovery were exceeded. The primary surplus of central government reached 0.8% of GDP and the budget deficit decreased to 3.6%. In the first half of 2011, tax revenues, which received aid from live private demand, increased significantly. In addition, the restructuring of public receivables provided revenues of US $5 billion. Accordingly, primary surplus doubled compared to 1Y2010 and reached US $16 billion. As a result of the reduced interest payments, the budget gave a surplus of US $2 billion in 2010, compared to US $2 billion, which was US $10 billion in 2010. The debts of the public sector decreased to 28% of GDP at the end of 2008 from 66%. However, with the worsening budget balances, public debt increased in 2009. In line with the decline in the budget deficit, debt indicators entered a downward trend in 2010. Total public debt, which was calculated by clarifying some public sector assets, declined to 4 percent to 29 percent of GDP at the end of 2010, while EU defined public debt declined to 42 percent of GDP. In January-July period of 2011, gross total public debt increased by 6% in TL terms. Thus, in the relative sense, the ratio of total debt to GDP is expected to remain roughly constant in this period.

Monetary and Exchange Rate Policies, Inflation

Turkey, in 2002, has adopted a free floating exchange rate regime and inflation targeting policy is a clear history starting from 2006. With the revaluation of the Turkish lira in favorable global conditions, inflation has declined significantly in the last decade.

Despite the decline to single-digit levels, inflation remained above the targets between 2006 and 2008, partly due to rising international intermediate goods prices. In this context, in 2008, the Central Bank revised its medium-term targets from the first 4% level to 7.5% and 6.5% for 2009 and 2010, respectively.

Along with the growth performance affected by the global crisis, the Central Bank has followed an irresistible monetary policy, which has resulted in large cuts in short-term policy interest rates (corresponding to O / N borrowing rates) since November 2008. Interest rates; In July 2008, it decreased gradually from 16.75% to 6.5% in November 2009.

As explained earlier in 2010, the Monetary Policy Committee set the one-week repo lending rate as 7% in May. The rates were kept unchanged throughout the year and were reduced by 50 basis points in December 2010, then fell 25 basis points in January 2011. The Central Bank has adopted a new stance starting from 4Q2010 with a focus on policy. stability in addition to the goal of price stabilization. The new policy mix of the Central Bank consists of the low reference ratio, the higher fluctuating O / N ratios and the high reserve requirements for short-term deposits.

In August 2011, the Bank reduced the one-week repo rate by 50 basis points to 5.75% due to the growing concerns over the impact of the European debt crisis on domestic economic activity. It also decided to narrow the interest rate band. By increasing the O / N borrowing rate to limit potential downward volatility.

Basic Indicators of The Financial Market Sectors

The Czech National Bank regularly publishes basic information on individual financial market sectors. In this way it gives experts and the general public access to basic quantitative data on the size, financial condition and prudential business of banks, credit unions, insurance companies, investment firms, management companies, collective investment funds, pension management companies and funds operated by pension management companies.

Foreign Trade and Foreign Debt

Positive external and domestic demand conditions, in the period before the global crisis has led to a significant increase in Turkey's foreign trade. While imports increased faster than exports, the trade deficit widened rapidly and led to a significant increase in the country's current account deficit. Note that Turkey's Customs Union at the beginning of 1996 due to the members of the European Union removed the customs duties for industrial goods.

With the contraction in global demand, exports of goods started to decline in the last quarter of 2008 and decreased by 23% in 2009 compared to the previous year. Imports contracted more rapidly, while current account deficit fell 67% to USD 14 billion.

However, this trend reversed in 2010: imports rose by 11% due to the recovery in domestic demand. The current account deficit leads to a sharp expansion. The deficit increased more than three times, reaching US $48 billion in 2010. The deterioration in the current account deficit continued at 1Y2011, which was US $45 billion, almost equal to the previous year's total. In order to limit this increase, various measures have been taken by the Central Bank and the Banking Regulation and Supervision Agency to limit the growth of bank loans and thus to limit domestic demand.

before the 2008 global crisis, Turkey's foreign debt grew rapidly at the end 3Ç2008 had reached US $ 290 billion. The external debt, which fell to USD 268 billion in 2009 after the global financial crisis, improved with the private sector's short-term debts in 2010 and 2011. Total debt increased to USD 290 billion at the end of 2010 and to USD 299 billion in 1Q2011. It should be noted that total external debt is composed of USD 77 billion of short-term debt and USD 222 billion of long-term debt.

In parallel with the large foreign capital inflows, the Central Bank's gross foreign exchange reserves increased to USD 75 billion in 3Q2008. After the collapse of Lehman Brothers in September 2008, CBRT reserves began to erode. However, it started to recover from 2Q2009 and reached USD 93 billion in July 2011.

CAPITAL MARKETS BOARD OF TURKEY

The Capital Markets Board (CMB) is the only regulatory and supervisory authority aiming to regulate and improve the safe, transparent and stable functioning of capital markets and to protect the rights and interests of investors. and widespread public participation in the development of the economy by encouraging investment in the securities markets in Turkey. The CMB was established as a self-financing public legal entity with administrative and financial autonomy, which was enacted in 1981 and authorized by the Capital Markets Law (CMB), which was enacted in order to fulfill its powers under this Law. The CMB has a board of directors consisting of seven members / commissars, two of which are chairman and vice chairman. The CMB's headquarters is located in Ankara and also has a regional office in Istanbul.

In addition to regulatory reforms, a public relations campaign to revive the initial public offerings was undertaken, and more recently an investor education campaign is being designed. As a result of these efforts, in addition to adequate macro-economic conditions, both the IPO market and the corporate bond market revived significantly starting from 2010.

The main duties and powers of the CMB are as follows (CMB, 2010):

• To regulate and control export, public offering and sales conditions.

capital market instruments for the implementation of this Law;

• Register capital market instruments to be offered to the public or to be offered to the public and put on the market the public offering of capital market instruments temporarily required by the public offering;

• Determination of the standard ratios for financial structures and use of resources Generally, according to the scope of activities or areas of activity, regulating the types of institutions and related principles and procedures of the capital market institutions subject to CML;

• To determine the principles related to independent audit activities,

When it is appropriate to use electronic media in capital markets; to determine the working conditions of the institutions and the working principles of the institutions in the independent audit activities of the capital market in accordance with Law No. 3568 dated 1 June 1989, Turkey to publish a list of the Chamber of Accountants and has these qualities;

• Achieving general and specific decisions to ensure that the procedure is timely and clarified. the principles, reports and their control for the publication of the financial statements; and the important information affecting the value of the tools and circulars issued to the public offering of the capital market instruments;

• Supervising the activities of issuers subject to CML Article 50 of the Capital Markets Board, provisions in capital market institutions and shares (a) clauses, channels and other organized markets for compliance CML, decrees, communiqués

All necessary information and documents of the Board of Directors and other legislation related to the capital market;

• Monitoring all relevant publications, announcements and advertisements. It is necessary to inform the Capital markets of any communication tool and to be misleading and to be duly informed about the relevant institutions.

In the turbulence in May-June 2006, foreign investors' bonds fell sharply.

The stock portfolio displayed an intangible change. As a result, both interest rates and exchange rates have increased sharply in a very short time. As illustrated by the May-June 2006 period, globalization is a challenge to monetary policy from at least two channels. First, it emphasizes the role of the exchange rate channel. A sharp deterioration in risk appetite can lead to a large portfolio outflow, threatening to disrupt both current and expected inflation. Second, the monetary authority's control over aggregate demand is reduced by controlling interest rates, because the risk of depreciation of the local currency results in a high and variable risk premium. As a result, this blurs the stance of monetary policy because assessing the neutral interest rate becomes more challenging.

1. Equity Market

As of June 2011, Istanbul Stock Exchange has 367 registered companies. The number of listed companies has been slack since 2007. However, the IPO market has revived significantly 2010 and the number of listed companies rose to 43 in a year and a half. After the 2001 economic crisis, the number of public offerings remained limited. During the period of 2005-2008, although the number of offers remained low, the size of public offerings increased significantly, especially due to privatized companies. Then there was a significant contraction with the global crisis in 2008 and 2009. The ongoing weak performance of the public offering market has launched a national campaign to promote public opinion. A cooperation protocol was signed between the Istanbul Stock Exchange (ISE). Turkey Chambers and Commodity Exchanges (TOBB), the Capital Markets Board (CMB) and the month in Turkey Capital Market Intermediary Institutions of the Union in August (Association) in 2008. The global crisis of the disappearance of the negative effects and abroad positive trend in the macroeconomic environment, was launched in 2010, according to IPO awareness campaign . above mentioned protocol. Various seminars were organized in the big Turkish cities where the managers are located. private companies were informed about the benefits of being open to the public. The campaign in this context was launched by various institutions and was launched by different institutions and a website. In the meantime, a similar protocol for promoting small and medium size IPOs was approved by related parties in February 2011.

2. Bonds & Bills Market

With the fall in inflation in recent years, interest rates have followed a downward trend. Turkey has increased confidence in the economy. At the end of 2001, the T-invoice rates, which were around 70%, fell gradually to 20% in 2008. In 2009, it fell to 8-9%. The limit with the rate cuts of the Central Bank. Following this sharp decline, the benchmark bond issuance declined to around 7% by the end of 2010. However, at the beginning of 2011, benchmark rates increased to 8.5-9% with new monetary results. Policy mix and increasing concerns over the global economy. Banks and intermediary institutions compete in the fixed income market. In 2011, 92% of the bonds and 80% of the Bank's trading volume and repo transaction volume were created by banks.

Public sector securities dominate the Turkish bond and bond market. Outstanding corporate bonds represent about 2% of the state debt. However, it should be noted after a long period of time, the corporate bond market was only recently revived. After 1994, the first corporate bond issue was realized in 2005. Following the revisions in related regulations to revive the markets and the decline in interest rates, the corporate bond market almost exploded in 2010. Total number The amount registered to the Capital Markets Board reached US $3.7 billion compared to 2010. US $ 289 million in 2009. This positive trend continues in 2011 and the size of the issue has already been exceeded In the first four months of 2011, $5 billion, especially with the help of bank bills.

3. Money Market

As stated earlier, the Central Bank of Turkey has adopted an inflation targeting policy. Following the global financial crisis, the Central Bank took measures to support financial liquidity The system, which started in the last quarter of 2008, lowered its policy rate. In the middle of the contract, the borrowing rates in November 2009 were reduced to 6.5%. With about 16% before global turmoil. In 2010 the National Bank agreed a week Lending rate of 7% as the reference interest rate on the monetary policy. The policy rate was reduced by 50 basis points in December 2010 and reduced by 25 basis points. In January 2011, rates were allowed to fluctuate in a wider range. Regarding domestic economic activity with increasing concerns, the Bank increased its one-week repo ratio 50 basis to 5.75% in August 2011 and narrowed the interest rate band. The trading volume in the Takasbank money market increased by 5% to $19. In 2010, the average daily trading volume of billions of dollars was US $77 million. With the new money policy, the daily trading volumes in transactions increased significantly, exceeding US $110 million in the first half of the year.

4. Futures Market

The TurkDex, the futures market, has been growing steadily since its launch in 2005. There has been a moderation in growth rate since 2008. In 2010, the annual transaction volume was 32% to 288 billion USD. The first half of 2011 indicates only 2% of inadequate growth. Unlike fixed income market, brokerage houses receive lion's share in futures purchases. The transaction volume of brokerage houses was 85% in January-June 2011. TurkDex has 4 group contracts as shown in the table. Trade is mainly concentrated on ISE-30 index contracts. USD / TL foreign exchange contracts are second.

5. Asset Management

In 2010, the total portfolio of institutional investors increased by 25% to USD 35 billion. This significant increase reflects the growth in real estate investment funds (REITs). Regarding Regulatory REITs, in 2010, amendments were made to the minimum free float requirement (from 49% to 25%) and the duration of the list condition (3 months between 1 and 5 years). Total assets under management increased by 6% in 1Y11 with the ongoing growth in REITs. REICs represent 22% of total assets under management and 7% at the end of 2006. The private pension system has been growing exponentially since its entry into force by the end of 2003. Pension funds continued to grow in 2008 and assets under management reached US $ 8.3 billion as of June 2011. Its share in total assets reached 22%. End of 2006 by 10%.

As a result of the growth in pension funds and REITs, the share of fixed income investment funds, which account for 3/4 of the assets managed in 2006, now represents only half of the assets. On the other hand, equity mutual funds correspond to 3% of the managed assets.

Importance of Capital Markets

Capital market is the market where the investor evaluates the investor's savings investments with a certain return expectation. People in need of funding provide funding through the issuance of stock or debt securities by using the capital market.In addition, some sector investors who want to carry out risk management can minimize their risks by using their derivatives, hedge and arbitrage methods. In addition to risk management, the capital market is a market in which small amounts of savings, which are not only useful to the economy, can be invested in investments such as debt and equity, converted into investments and thus mobilizing the economy.

Primary Market

It is the market where securities, bonds, securities and fund needs and those who are saving are directly facing. Ir IPO ğ is an example of a primary market. The public offering company issues shares to finance and owners invest in these stocks and evaluate their savings.

AGENDA OF THE TURKISH CAPITAL MARKETS

1. Regulations

Between 2006-2007, the Capital Markets Board carried out a twinning project with the German BaFIN. In this study, Turkish regulations were reviewed and their compliance with European Union regulations was analyzed. Turkey has concluded that the structure is compatible with EU regulators. largely standards. Still, there are some changes to apply. In April 2010, the communiqué on public offerings was to harmonize with the EU acquis and to facilitate the public offering process. In this context, the revision was the removal of the minimum free float requirement. In addition, the insurance obligation for intermediary institutions has been abolished. The fact that investors and stocks are registered for the listing of qualified offers in the Emerging Companies Market is also regulated by this new communiqué for SMEs. In July 2010, there were a number of new regulations aimed largely at preventing market manipulation. Explained by CMB. The CMB divided its shareholders' equity into three groups according to liquidity and free market. distinguished criteria and trade rules. These measures came into force in October 2010. In October 2010, a new regulation on the sale of foreign securities was issued. This regulation allowed foreign capital public offering and alleviated existing regulations on foreigners. In October 2010, the Banking Regulation and Supervision Agency allowed banks to issue TL related bonds and invoices. On the other hand, for the first time in 2011 leveraged forex transactions were the Capital Market Law. Accordingly, this market is regulated by the Capital Markets Board the end of August. In July 2011, asset management companies were given the opportunity to apply for mediation. Licenses limited to mutual funds. Since global turmoil has affected the markets, rebates have been introduced for the first time. August 2011. Concurrently, the regulation on short sales was tightened.

2. Market Reforms

The Emerging Companies Market (ECM), established as a separate market in the ISE, began operations in October 2010. This market is designed for SMEs with more demanding demands than the main market. A market consultant mechanism for the ECM was introduced. Recently, many new sub-markets have been established in the ISE bonds and bills market. In May 2010, the ISE shares launched a new debt market for companies listed on the ISE. These companies will be able to issue debt instruments in the Qualified Bids Market. Investors without publishing a prospectus and a circular. The Repo Market for Specific Securities and Interbank Repo-Reverse Repo Market was established in December 2010 and January 2011.

3. IPO Campaign

Istanbul Stock Exchange, Capital Markets Board of Turkey Chambers and Stock Exchanges Association of Capital Market Intermediary Institutions of Turkey and the Union, IPO in 2008 signed a protocol to promote. Within the scope of the protocol, seminars, conferences and private meetings are organized across the country to increase awareness of public presentations among a number of Firms,

Benefits and procedures of an IPO. A similar protocol was launched in February 2011 in Istanbul Stock Exchange, Capital Market Board, Small and Medium Industry Development Organization and

Capital Market Intermediary Institutions of Turkey, in order to promote the IPO of small and medium-sized enterprises. Under the Protocol, the Small and Medium Industry Development Organization will support the public offering costs of SMEs to be traded in the newly established Emerging Companies Market.

4. İstanbul Regional Financial Center Project

The government undertook a project to turn Istanbul into a regional financial center. Work was initiated under the coordination of the government and at the beginning of 2009 working groups were formed with the contribution of 81 public and private organizations, non-governmental organizations (including TSPAKB) and universities. The Strategy Paper obtained was opened to public in October 2009.

Studies on a wide range of areas, including the justice system, regulatory and supervisory framework, diversification of financial services, taxation policies, human resources and work committees, are ongoing. Our association takes part in every step of the project.

5. Investor Education Campaign

Recently a joint investor training campaign was launched. In this context, TSPAKB has funded a broad-based financial literacy survey in 2010. A quantitative survey was conducted with the 2010 population in which the total population was represented.

The Capital Markets Board launched a website for investors. This website contains basic information about markets and investment instruments and grievance procedures.

Experts from the Istanbul Stock Exchange, the Capital Markets Board and the Association of Capital Market Intermediary Institutions visited various universities to raise and raise awareness among university students on the capital markets.

What is Market Mechanism?

The concept of the market involves the purchase by buyers and sellers of a good or service in a particular location and shopping for various means of communication (telephone-fax and e-mail), such as buyers and sellers of a good or service. ); To be able to talk about the market, buyers and sellers need not come together in a particular place.

Economists use the concept of the market in three different ways: the product-commodity market, the source factor market and the asset market. The product-commodity market and the resource factor market represent the ease of bringing together buyers and buyers of goods and resources, respectively. The asset market refers to the ease of bringing together buyers and sellers of alternative assets such as money, bonds, stocks, households.

In analyzing the market mechanism, economists divide millions of buyers and sellers in the economy into four main sectors: the household sector, the contracting sector, the government sector and the foreign trade sector.

The household sector covers all families in the economy. Household sector members are called consumers.

The siege sector consists of all companies in the economy. The concept of firm in this definition covers the decision-making units that produce the goods produced by the household sector and sell the goods produced to the households to other companies, the outside world or the government.

The government sector covers all public institutions and organizations in an economy. In the economies in which market capitalism is practiced, the main objective of the government sector is to protect and develop the competitiveness of individuals in the economic life as well as the fundamental rights and freedoms of individuals.

The foreign trade sector is a sector in which all economic relations of the external world and an economy are consolidated. In the market mechanism, each economy has an intense commodity and capital relationship with the outside world. This relationship encompasses the movements of imports and capital between economies, which means that an economy sells goods to the external domain.

Importance of Capital Markets

In addition, some sector investors who want to carry out risk management can minimize their risks by using their derivatives, hedge and arbitrage methods.

In addition to risk management, the capital market is a market in which small amounts of savings, which are not only useful to the economy, can be invested in investments such as debt and equity, converted into investments and thus mobilizing the economy.

Primary Market

It is the market where securities, bonds, securities and fund needs and those who are saving are directly facing. Or IPO is an example of a primary market. The public offering company issues shares to finance and owners invest in these stocks and evaluate their savings.

Secondary Market

Market where securities are converted into cash. Securities in the secondary market have previously been subject to trading. Securities in the secondary market (stocks, stocks, futures, warrants, options, etc.) are purchased and sold through intermediary institutions. Direct investors and exporters cannot trade. In short, the secondary market is the market

where securities are exchanged between investors and intermediaries. The most organized example of the secondary market is the stock exchange.

Organizations operating in capital markets are as follows;

-Borsa Istanbul

-Union Capital Market Intermediary Institutions (Association)

-Protective and Custody Bank (Takasbank)

- Central Institutions and Banks (Investment Institutions)

- Outdoor companies

Central Registry Agency (MKK)

-Portfoy Management Companies

-Bank Regulation and Supervision Agency (BRSA)

-CBT

-Rating Companies

-General Undersecretariat of Treasury

- Capital Market Instruments

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qandle5 · 2 years

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5 Simple Steps to Streamline your Payroll Process

For any firm, the payroll process may be difficult, and it’s easy to become mired down in the administrative side of things. Every business owner understands how critical it is to ensure that employees are paid accurately and on schedule. However, with so many various regulations, documentation obligations, and tax ramifications, it’s no surprise that payroll can be a pain. Keeping up with these requirements and changes can add a lot of extra work to the payroll department’s workload. Improving efficiency at every stage is the key to guaranteeing a smooth payroll process for your business or firm.

HR has now become entirely automated, but payroll was the first area where automation began, and the vast majority of businesses now use technology to automate payroll activities.

Customers want items and services to be delivered quickly; therefore, inefficiency has no place in the world. The benefits of today’s automated payroll processing software go far beyond just automating payroll processes. It’s no surprise, then, that HR payroll operations have been caught up in the technology tide.

What Is Payroll and How Does It Work?

Payroll is the compensation that a company owes to its employees for a specific period of time or on a specific day. It is typically administered by a company’s accounting or human resources departments. Payroll for a small firm might be handled by the owner or an associate. Payroll processing, employee benefits, insurance, and accounting functions like as tax withholding are increasingly being outsourced to specialist organisations. Many payroll fintech companies, including Atomic, Bitwage, Finch, Pinwheel, and Wagestream, are using technology to make payroll operations easier. These solutions pay employees more conveniently and quickly, as well as providing digital payroll-related documentation and other innovative technology-enabled services that the gig and outsourcing economy demand.

The list of a company’s employees and the amount of remuneration due to each of them is referred to as payroll. Payroll is a significant expense for most firms, and it is almost always deductible, meaning it can be deducted from gross income, lowering taxable income. Because of overtime, sick pay, and other factors, payroll might vary from one pay period to the next.

Knowing Payroll-

Payroll is the process of paying a company’s employees, which includes keeping track of hours worked, calculating pay, and disbursing funds to employees via direct deposit or check. Companies must, however, conduct accounting activities in order to record payroll, withheld taxes, bonuses, overtime compensation, sick time, and vacation pay. Companies must set aside and record the amount of Medicare, Social Security, and unemployment taxes that must be paid to the government.

Many businesses use payroll software to keep track of their employees. An API is used to input the employee’s hours, and their compensation is processed and sent into their bank accounts.

Payroll services are outsourced by many medium and big businesses to simplify the process. Employers keep track of how many hours each employee works and report this to the payroll service. The gross amount payable to the employee is calculated by the payroll service on payday based on the number of hours or weeks worked during the pay period and the pay rate. The service deducts taxes and other withholdings from employee earnings before paying them.

To know more: https://www.qandle.com/hr-payroll-software.html

#payroll software #hr payroll software

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orbemnews · 3 years

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The Fed Meets Against a Revamped Economic Backdrop: Live Updates Here’s what you need to know: Jerome Powell, the chair of the Federal Reserve, at a press conference in January 2020, just before the coronavirus pandemic struck the American economy.Credit…Mandel Ngan/Agence France-Presse — Getty Images The Federal Reserve is staring down a challenge that would have been all but unthinkable a year ago: With its policies set on emergency mode to bolster growth in the face of the pandemic’s shock, it must now navigate an economy that is expected to strengthen rapidly in the coming months. Officials will release an interest rate policy decision and their first economic projections of 2021 at 2 p.m. on Wednesday, and they are virtually certain to leave borrowing costs unchanged at near zero. But analysts and Wall Street investors alike are eager to see whether growing economic optimism will shake up the outlook for policy in the months and years ahead. The Fed slashed interest rates to rock bottom a year ago as the pandemic shut down huge swaths of the economy. It has also been buying $120 billion in bonds per month, a policy meant to keep credit cheap and help the economy rebound from a virus that has thrown millions out of work. Jerome H. Powell, the Fed chair, has been clear for months that officials expect to be patient in removing that policy help — a cautious tone that he is expected to maintain at a news conference on Wednesday. “This is one of the most critical Fed meetings we’ve had in a while,” said Michelle Meyer, head of U.S. economists at Bank of America Merrill Lynch. “Markets are really paying attention, and they’re going to dissect everything he says.” That’s because the economic backdrop is shifting. Coronavirus vaccines are fueling hopes for reopening parts of the service sector. A freshly signed stimulus package will pump $1.9 trillion into the economy, with an eye on preventing evictions, funneling cash to parents and putting $1,400 checks directly into bank accounts. Against that improving backdrop, economists in a Bloomberg survey expect the Fed to increase rates twice in 2023, the news outlet reported. In December, they typically expected rates to remain on hold until 2024 or later. As investors expect faster growth, higher inflation and a quicker-moving Fed, they have pushed up the yield on 10-year Treasury notes. That has weighed on stock indexes, which tend to fall when rates rise. The Fed’s economic projections — which anonymously report officials’ forecasts for interest rates, unemployment, inflation and growth both through 2023 and in the longer run — could show a shift when they are released on Wednesday. Wall Street will pay particular attention to the inflation forecast and the policy rate path. The Fed’s median interest rate forecast previously showed no rate increases over the next three years, but analysts expect that officials could now pencil in one move in 2023. Wall Street has been paying close attention to the outlook for inflation in recent weeks. Key price indexes are expected to bounce back after weak readings last year, and some economists have warned that big government spending could keep them elevated. That could put a spotlight on Federal Reserve officials’ inflation estimates, and on anything that Jerome H. Powell, the Fed chair, says about the outlook during his news conference after the central bank’s meeting on Wednesday. The Fed is trying to use its policies to coax the economy back to full employment while lifting and stabilizing inflation, which has been slipping in recent decades. It wants to hit 2 percent annual price gains on average, and it has pledged not to raise rates from near zero until they are poised to hum along at a slightly faster pace for some time. But some prominent onlookers have warned that the economy could overheat. They say inflation may jump well above the 2 percent average target, thanks to government outlays and booming demand in a reopening economy. Fed officials have been consistently less concerned about that possibility, and will give an up-to-date snapshot of their own expectations in their first Summary of Economic Projections of 2021. The last set of estimates, released in December, showed inflation stabilizing at 2 percent. “How much do they revise up inflation? That’s something I’ll be looking for,” said Seth Carpenter, chief U.S. economist at UBS and a former Fed employee. Analysts broadly expect price gains to accelerate in the coming months for a mechanical reason: The data are about to lap very weak readings from last spring. The most closely watched inflation measures are compared against the same month a year earlier, a recipe for an automatic increase. But Fed leaders have been clear that a short-lived bounce is not what they’re talking about when they say they want to see quicker increases. “There’s a difference between a one-time surge in prices and ongoing inflation,” Mr. Powell said this month. Keith Gill, known as Roaring Kitty, testified at the House Financial Service Committee’s first GameStop hearing.Credit…House Financial Services Committee The House Financial Services Committee is holding its second hearing on the GameStop frenzy on Wednesday, with a range of experts expected to expound on what the saga says about the stock market’s plumbing. The hearing appears likely to have a more wonkish tone than the committee’s first hearing on GameStop, which put a spotlight on Robinhood, the trading app at the center of a remarkable rally that sent shares of the struggling video game retailer up by over 1,600 percent in January, Witnesses will include stock exchange officials, market analysts, former regulators and academics. Prepared testimony suggests the witnesses will focus on what — if any — deficiencies in the American stock trading system were revealed by the surge of trading in GameStop. Sal Arnuk, co-founder of trading firm Themis Trading, plans to spotlight the growing role of payment-for-order-flow, where retail brokerage houses such as Robinhood channel customer orders to specific trading firms in exchange for payments. “These practices create a massive incentive for such brokers to sell their clients orders to sophisticated trading firms uniquely tooled to profit off of them,” Mr. Arnuk will say, according to preliminary testimony released by the House committee. “This is a needless conflict that can harm retail investors, and it degrades the integrity of the market ecosystem as a whole.” Other witnesses, such as Alexis Goldstein, a senior policy analyst at Americans for Financial Reform, will underscore the growing dominance of the trading firms that pay retail brokerages to execute their orders. Two major market-makers, Citadel Securities and Virtu Financial, “execute a larger volume of U.S. stocks than the New York Stock Exchange,” she said in prepared testimony, urging regulators to look at whether their growth has worsened the prices that are available to investors on the public exchanges. The hearing is to begin at 10 a.m. Other participants include Michael Blaugrund, chief operating officer of the New York Stock Exchange; Vicki L. Bogan, a Cornell University professor who focuses on the financial and investment behavior of households; Dennis Kelleher, the chief executive officer of Better Markets, which advocates for market reforms; and Michael Piwowar, executive director of the Milken Institute Center for Financial Markets and a former S.E.C. commissioner. Payments top out at $1,400 per person, including children and adult dependents. To qualify for the full $1,400, a single person must have an adjusted gross income of $75,000 or below.Credit…Matt Rourke/Associated Press The stimulus money promised under the American Rescue Plan will hit the bank accounts of many Americans on Wednesday — the first official payment date — though some financial institutions chose to make the cash available to people even before it arrived from the government. Not everyone eligible to receive a payment will get one on Wednesday, though. Additional rounds of payments will be made in the coming weeks, including for people who will receive theirs by mail as a check or debit card. You can check the status of your payment with the Internal Revenue Service’s Get My Payment tool. Payments top out at $1,400 per person, including children and adult dependents. To qualify for the full $1,400, a single person must have an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income must be $112,500 or less, and for married couples filing jointly, that number has to be $150,000 or below. Partial payments are available to people who earn more, but the amounts fall quickly. The payments are calculated using the most recent information on file with the I.R.S., which could be your 2019 tax return if you haven’t yet filed for 2020. If you’re newly eligible for a payment based on your 2020 income but haven’t yet filed your return, the law allows the Treasury Department to continue payments until September. If you don’t get one during that period, you can claim what you’re owed when you file your 2021 taxes. The problems of Greensill Capital, a financial firm with ties to SoftBank and Credit Suisse, deepened Tuesday after its German unit entered insolvency proceedings. Germany’s banking regulator, known as BaFin, said Tuesday that a judge had granted its request to open insolvency proceedings for Greensill Bank in Bremen. BaFin also formally determined that Greensill Bank was not able to repay all of its customers’ deposits, a step that allows depositors to receive compensation from public and private insurance funds. The insolvency of the German unit was expected after Greensill Capital, which provides financing to companies and has been advised by former Prime Minister David Cameron of Britain, filed for a form of bankruptcy protection in Britain last week. Credit Suisse acknowledged on Tuesday that it was likely to suffer losses from a loan it had made to the firm. It said that it had received $50 million from the administrator of Greensill Capital’s assets in Britain but that $90 million of the loan was outstanding. Credit Suisse’s asset management unit oversaw $10 billion in funds that Greensill packaged based on financing it provided to companies. The loans allowed companies to stretch out payments to suppliers. Credit Suisse has returned $3 billion in cash to investors in the funds and said it was working to recover more money. Credit Suisse said Tuesday that the funds’ managers “intend to announce further cash distributions over the coming months.” The bank has not specified what losses, if any, investors in the funds might ultimately suffer. Source link Orbem News #Backdrop #Economic #Fed #Live #Meets #revamped #Updates

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scentedrunawayshark · 3 years

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4 Health Insurance Benefits + COBRA: Lower Employee Stress

Of all other things that keeps me worried, one major concern that remains is- what if I am laid-off by my employer? Losing my job not only stops my earning until I have found myself a new one, but also puts my family’s happy dwelling at stake. Things get worse when I haven’t been able to find a replacement.

Of course, all of us do calculate these risks and keep ourselves prepared for the high priority life requirements. Yet, there are these sudden occurrences, like some illness or accident, which we cannot calculate from before and stay absolutely prepared. Situations such as these call for investing in health insurance etc. We all as employees receive some sort of employer-sponsored health coverage for our protection and our immediate family. The fact is that most of the working population in USA depend on their health insurance plans that their companies provide.

Every employer, whether a small- or mid-cap business or a big brand tries to keep its employees well protected. In a survey from the census board, the following statistics about employed population in USA (2014) was found:

Having government health insurance plan: 20.7% or 40,624

Having any health insurance plan: 85.4% or 167,600

Employed population between 18 and 64 the U.S.: 196,254

Having private health insurance plan: 66.7% or 130,901

Those who remain uninsured: 14.2% or 27,868

For those with employer-sponsored health insurance plans, there is always a fear of losing the coverage in case the job is laid. It’s here that the employees need to thank COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985). This Act has helped many fathers stop worrying how he will afford emergency healthcare for his children when he has no job, hence, no family coverage.

Consolidated Omnibus Budget Reconciliation Act of 1985- COBRA

There was a time when a health insurance covered by the employer, in other words, a corporate health insurance plan, provided no relief to the employee. The employee was always concerned about his and his family’s medical coverage in the event he was fired from job, got divorced, or changed jobs.

In the event of employee covered under COBRA, if he is losing group insurance due to changing life events, he can still continue to remain under his employer’s group health insurance plan. However, he has to pay the entire premium amount (including employer contribution) for a limited time (18 months).

Not quite confident about considering COBRA as your healthcare protection still? Take a peek at the benefit an employee gets through this plan:

With COBRA- a group medical plan is a special kind of arrangement made available by the employer or is maintained by him. Here employee and his family receives medical care through the employer even when he/she has lost the job, for 18 months from his leaving the company-Medical care under group health insurance plan*** include:Apart from COBRA coverage, there are 4 more essential benefits employees are required to be provided by law by the employer:

Family and medical leave Act (FMLA)- This act can be confusing for employees at times. The act mandates the employer to provide 12 weeks of work-time off (unpaid) within a period of 12 months. This leave is to help employees protect themselves from getting fired while caring for them or their immediate family’s health. The act includes child birth, also placing for foster care or adoption of a child. The FMLA allows the employer the discretion of offering either unpaid leave or paid leave as an optional benefit plan as well.

Compensation for workers- This offers insurance benefits to all those employees who are taken ill while they are employed. The benefit also goes to those who get injured while at work. The health insurance plan differs according to state and the dictations are made at state level. Certain states also mandate employers to buy disability insurance.

Taxes (Social security)- The tax has to be paid on the employees, the current rate being 6.2%. This tax is jointly paid by both the employer and employee. An addition of 1.45% is added as Medicare tax.

Unemployment Insurance- This health insurance plan offers compensation to employees who have lost jobs for no fault of theirs. The state is at discretion to implement the caps for the unemployment insurance plans. This necessitates the employer to register his company with the workforce agency of his state. It is at this agency where he is informed about the state’s requirements.

From employer assets

Through insurance

Health care organization

Typical group health plan*** (Medical care)

Vision care and dental health

Prescription medicines

Visit to the physician

Surgery, major medical performances

Outpatient and inpatient care

Help is not far away, nor it is very difficult to receive. However, you must keep yourself abreast of whatever is happening around you and your workplace. A health remains a major concern for all, it is always better to find out what kind of support can come your way through the place that employs you. As for COBRA, you need to decide if you wish to contribute a little more only in case of the need to arise, or you remain uninsured and under constant paranoia of risk befalling on you.

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georgewagner · 3 years

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How do pensions work for self employed tradespeople?

Note: All figures are correct at the time of writing (28th January 2021).

As a self-employed tradesperson, you’ve got a lot on your plate when it comes to organising your money – from submitting VAT returns to applying for government financial support. This may mean that you’ve delayed sorting out your pension. However, it’s important that you make sure you’ve got enough future income in the pipeline, so you can enjoy your retirement. Read on to find out more about self employed pensions for tradespeople.

Do self employed tradespeople get a State Pension?

Yes. As a self employed tradesperson, you’re entitled to the State Pension in the same way that anyone else is. You need to meet the same requirements as everyone else in order to be eligible for a State Pension.

To claim the new State Pension, you must have been born on or after 6th April 1951 if you’re a man, or 6th April 1953 if you’re a woman. Also, you usually need to have a total of 10 qualifying years of National Insurance (NI) contributions or credits gained from either:

Paying voluntary NI contributions whilst you’re self employed.

Working and paying NI. A qualifying year is one where you earn over £183 per week from one employer.

Getting NI credits, gained during unemployment or illness for example.

If you reached the State Pension age before 6th April 2016, then you’ll get the old State Pension instead.

How much State Pension do self employed tradespeople get?

The full new State Pension is £175.20 per week. The amount you’ll actually get depends on:

The number of qualifying NI years that you have.

Whether you have any gaps in your NI record.

Whether you have to pay tax on your pension. HMRC could count your State Pension as part of your total annual income. If your total annual income is more than your Personal Allowance (£12,500) then you’ll pay tax on the difference.

Looking for a pension calculator for self employed tradespeople? Work out how much income you’re likely to get when you retire on the Money Advice Service website.

Personal pensions for self employed tradespeople

You can arrange a pension yourself, that’s separate to your State Pension. This is called a personal pension. It’s also known as a defined contribution pension or money purchase pension.

How does a personal pension work?

A personal pension is a type of defined contribution pension, meaning your pension pot is based on how much has been paid into it. Your pension provider will put the money you pay into your pension into investments, for example stocks and shares. With your regular contributions and the money earned from your investments combined, your pension pot should grow in value over time.

The total amount of money you’ll get depends on:

How much money you pay into your pension.

The performance of your pension’s investments.

How you decide to take your pension money – for example, regular payments or as a lump sum.

The amount of tax relief you get. Your pension provider will claim the basic rate of tax relief and add it to your pension.

Any charges that your pension provider takes from your pension.

Inflation and interest rates.

Three types of personal pension

Photo by Christopher Bill on Unsplash

1. Standard personal pension

You choose your pension provider and set up how you’ll make your payments. You could make regular or individual lump sum payments into your standard personal pension.

2. Stakeholder pension

Stakeholder pensions are similar to standard personal pensions, but they usually have a bit more flexibility. This includes:

Allowing you to choose and manage your investments up to a certain amount. Your pension provider may provide you with options to choose from.

Allowing you to change your contributions if you need to.

Limiting the amount of charges you can receive.

Allowing charge-free transfers.

Allowing lower minimum contributions.

3. Self-invested personal pension (SIPP)

SIPPs allow you to choose the assets that you invest your pension money in. If you’re keen to have more control over your investment portfolio, then a SIPP lets you get more hands on than standard or stakeholder personal pensions. Whilst this comes with the risk of something going wrong if you make a wrong investment decision, the potential benefits include:

Allowing you to adapt your contributions as needed, whether this is by taking a payment holiday or depositing a higher one-off amount.

Lower management fees.

It’s important to get advice from a financial adviser before setting up your pension. Find out how to choose a financial adviser to help you with your pension on the Money Advice Service website.

How much can a self employed tradesperson pay into a personal pension?

You can pay in as much as you’d like into your pension in each tax year. However, you’ll only get Income Tax relief up to a certain amount.

Is a pension tax deductible for self employed tradespeople?

Yes. This is because your pension contributions are taken from your salary before you pay Income Tax on them. So, your taxable income is lower. However, you will pay tax on your pension if the amount you put into it exceeds (depending on which is lower):

£40,000, which is the annual allowance.

Example: You could earn £50,000 in a tax year and put all of it into your pension. However, you’ll usually only get tax relief on £40,000 of it.

100% of your earnings.

Example: If you earn £20,000 in a tax year but put £30,000 into your pension, then you’ll usually only get tax relief on the £20,000.

£1,073,100 in your lifetime. This is the lifetime allowance.

If your pension provider isn’t registered for tax relief with HMRC and/or doesn’t invest in your pension pot according to HMRC’s rules, then you’ll pay tax on your contributions.

How to backdate pension contributions

You can carry forward any of your annual allowance that you didn’t use in the three previous tax years, as long as you were a member of a registered pension scheme during that time.

You must also pay the full annual allowance into your pension for that year, in order to start using any annual allowance that you’ve got left over from previous years. Unused allowance can only be carried forward for up to three years.

Speak to a financial adviser to backdate your pension contributions.

How to save for a pension as a self employed tradesperson

The earlier you start your pension, the better. The benefits of starting your pension as soon as possible include:

There’s more time for your money to grow

As your pension money is invested, there’s more time for it to potentially grow.

You’ll get more tax relief from the government

If you started your pension when you were 23, paying in £150 per month, then you could get £4,560 more in tax relief from the government than if you waited 10 years, according to Aviva.

For more advice on planning your retirement income, visit Gov.uk.

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jomeyers83 · 3 years

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The Paycheck Protection Program Comes as a Saviour for Small Businesses in the US

The Paycheck Protection Program Comes as a Saviour for Small Businesses in the USIn February 2020, the US President set up the Coronavirus Task Force and appointed Secretary Mnuchin to head it. The taskforce and Treasury worked together to provide direct and fast relief to one of the worst-hit sectors of the US, the small business sector. The aim was to provide the small business owners with some fund relief that would help them pay off their employees and keep the business afloat. With this in mind and with the thought of helping American families, businesses, and workers, the U.S. Department of Treasury, along with the Coronavirus Task Force, launched the CARES Act that authorizes $2.2 Tn spend to support the cause.

The CARES Act

The Act is covered by 800-pages that contains numerous provisions, all aimed to provide financial relief to millions of American families and businesses who are suffering the implications of the current pandemic situation. The Act is primarily aimed to:

• Keep American workers employed and paid by providing Small Business Retention Loans

• Help American families with their tax obligations by providing them with rebates, credits, expanded unemployment insurance, and by providing economic impact payments

• Assist in stabilizing the overall American economy

• Provide Coronavirus Relief Fund for Tribal, Local, and State governments

The Paycheck Protection Program

A quintessential part of the CARES act that addresses the needs of the US small business sector, specifically, is the Paycheck Protection Program.

This program is aimed to serve millions of its citizens who are currently employed by small businesses. The program has authorized a spend of $349 Bn which is aimed to be spent towards payments to small business employees and other expenses crucial to keep the business afloat.

Eligibility for the program

• Small businesses

• Sole proprietors

• Individual contractors

• Veterans organizations 501(c)(19)

• Tribal businesses (with less than 500 employees)

• Eligible non-profit organizations 501(c)(3)

The above-mentioned entities are eligible for the Paycheck Protection Program, provided they meet the size standards laid down by the program. Each entity can apply for just one loan against their TIN (Taxpayer Identification Number).

What the Paycheck Protection Program entails?

Through the Paycheck Protection Program, the SBA is encouraging small businesses to keep their employees on payroll and keep the business going. They are doing so by providing small business owners with 100% federally-backed credit through June 30, 2020. This includes up to 8 weeks of forgiveness for sole proprietors, eligible non-profit organizations, and small businesses. These loans are forgivable only if the business owners who take these loans out, retain their employees at comparable pay to what they were paying before the pandemic.

The Paycheck Protection Program also waives all kinds of SBA fees and has allowed deferral on loan repayments for a period of 6 months to 1 year, to reduce the pressure of financial obligations for small businesses.

Small businesses that have been impacted by the Coronavirus pandemic from February 15 – June 30, 2020, are eligible to apply for the Paycheck Protection Program loans. The loans will be available until the stated date of June 30.

How to know how much loan you can apply for?

While the sum of $349 Bn seems like a large one, but given the fact that over 99% of US’s total of 29 million firms are small businesses, the Treasury needs to set strict standards for how much loan can be withdrawn by any applicant.

Therefore, they have categorized the loans as per the duration for which the business stays operable during the timeframe of February 15 to June 30. Each such organization will be eligible to receive 250% of their average monthly payroll spend, during the abovementioned period. Here is a detailed glimpse of this arrangement and how it will pan out for you if you own a small business:

· If you are in business for the complete period as specified by the program, i.e., February 15 to June 30, then you are eligible for the maximum loan bracket of 250% of your average monthly payroll spend for this complete duration.

· If you are in a seasonal business that operates say from, March 1 to June 30, then you will receive 250% of your average monthly payroll spend for this specified period.

· If you are not in business during these months due to the seasonality of your business, or if you went out of business before February 15, then you will be able to apply for a loan that equals to 250% of your average monthly payroll spend, for January and February.

Initially, some businesses opted for the Economic Injury Disaster (EID) loan for the period between February 15 – June 30. These businesses, too, can refinance their EID loan with a Paycheck Protection Program loan. They can also add any other outstanding loan amount to that of their payroll amount and apply for the loan.

Following are the expenses that are eligible to be included in your Paycheck Protection Program loan calculation:

• Overall compensation (wages, salaries, cash tips, commissions, etc.)

• Payment for medical or sick leave, family leave or vacation

• Allowance for employee separation

• Payments towards employment retirement benefits

• Payment for insurance premiums and group healthcare benefits

Further, the following are the expenses that are not included while calculating your loan amount for the Paycheck Protection Program loan application:

• Compensation above the sum of $100,000 per employee

• Compensation for employees whose primary residence is outside the US

• Taxes imposed by the Internal Revenue Code:

• Payroll taxes (chapter 21)

• Retirement benefits and Railroad taxes (chapter 22)

• Income taxes withheld on wages (chapter 24)

• Loans utilized for similar purposes of yet another SBA loan that has already been claimed by the applicant

• Qualified family or sick leave for which credit has already been allowed under the FFCRA (Family First Coronavirus Response Act).

If you are an eligible small business owner who has received the loan, here are the expenses for which you can use the loan and be in compliance:

• Payroll costs

• Rent

• Utilities

• Employee salaries and compensations

• Group healthcare benefit

• Any family leaves for employees

• Insurance premiums

• Interest on other loans accrued before February 15

The SBA will forgive the Paycheck Protection Program loans fully, only if the following three requirements are taken care of:

• Loans received under this program are used exactly for the purposes established by the Act.

• Loans are used to pay no more than 8 weeks of payroll expenses that are eligible.

• Loans provided to businesses are used to pay employees comparable salaries that have been receiving before the pandemic.

For any amount spent that does not meet the abovementioned requirements, the business will be required to pay back the loan matching the same amount. For this amount, the SBA provides businesses with a repayment window of 10 years, at an interest rate of 4%, sans prepayment penalties or loan fees.

To calculate which costs qualify to be included in ascertaining the loan forgiveness amount, you can use the following formula:

Forgivable loan = Payroll costs + Utility payments + Mortgage interest payments

If you would like to be approved for loan forgiveness, then you must contact the SBA or any other approved lender and submit your application complete with documentation that verifies the number of employees you have on payroll, their compensation, and other documents that reflect your payments towards mortgage and utilities.

Please note, that once you claim a Paycheck Protection Program loan, you will no longer be eligible for Employee Retention Credit or deferment in payment of employer payroll taxes till 2021.

While the Act has stirred the market with small business owners wanting to apply for the Paycheck Protection Program loan, as early as possible, the pressure is growing on authorized lenders to study the loan applications and grant funding from the allotted amount. The task is not only demanding but could also lead to human errors given the short amount of time and the thousands of applications flowing in every second.

Lenders working with the SBA to grant loans to small businesses during this hour of need, can automate the process of underwriting and approving loan applications, which will help them churn out loan applications quicker and with higher accuracy.

LendFoundry has added the SBA Paycheck Protection Program workflow in its lending platform and will now allow lenders to originate and service these loans. The LendFoundry platform is now available for immediate deployment.

Conclusion

The CARES Act takes a huge and important step towards ensuring public wellbeing by providing individuals with rebates and reliefs to the tune of $1200 for single taxpayers and $2400 for married taxpayers and ensuring that small businesses, that account for 99% of businesses in the US, are not forced to shut down operations and relieve their employees, thus, ensuring income stability to an extent. By taking care of up to 8 weeks (2 months) worth of payroll expenses, the SBA hopes to provide some breathing space to businesses that are trying to keep their operations running while ensuring their revenues are not severely affected.

#Paycheck Protection Program

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