#Ways to Pay Employers' PAYE

[georgeshutcheson]

Ways to Pay Employers' PAYE

New Post has been published on https://www.fastaccountant.co.uk/ways-to-pay-employers-paye/

Ways to Pay Employers' PAYE

If you’re an employer in the UK, understanding how to pay employers’ PAYE (Pay As You Earn) is crucial. PAYE is the system used by HM Revenue and Customs (HMRC) to collect income tax and National Insurance contributions from employees’ wages. This article provides an overview of the different ways you can pay your PAYE bill, including options such as direct debit, online or telephone bank transfers, corporate credit card payments, and even cheques sent through the post. By knowing the deadlines and methods available, you can ensure you stay compliant and avoid any interest or penalties for late payments.

Ways to Pay Employers’ PAYE

Paying employers’ PAYE tax is an important responsibility for all businesses in the UK. To ensure you stay compliant with HM Revenue and Customs (HMRC), it’s crucial to understand the various payment options available to you. In this article, we will explore different ways to pay employers’ PAYE, including online methods, direct debit, and payment booklets.

Overview

Before diving into the different payment options, let’s start with a brief overview of paying employers’ PAYE tax. Every employer is required to pay their PAYE bill to HMRC by a specific deadline, which depends on the frequency of their payments. If the payment is not made by the deadline, there may be penalties and interest imposed.

The payment can include various components, such as employee Income Tax deductions, National Insurance contributions, Student Loan repayments, and more. It’s important to ensure that you pay the correct amount on time to avoid any issues with HMRC.

Pay Online

One convenient and efficient way to pay your employers’ PAYE is through the online payment method. To make an online payment, you will need your 13-character accounts office reference number, which can be found in your HMRC online account, on the letter sent by HMRC during registration, or in your payment booklet. When paying online, you have the option to use your online banking account, telephone banking, or pay by debit or corporate credit card.

What You’re Paying

Understanding what comprises your PAYE bill is essential to ensure accurate payment. Your PAYE bill may include various deductions, such as employee Income Tax, Class 1 and 1B National Insurance contributions, Class 1A National Insurance on termination awards and sporting testimonials, Student Loan repayments, Construction Industry Scheme (CIS) deductions, and Apprenticeship Levy payments (if applicable).

It’s important to note that certain deductions, such as Class 1A National Insurance on work benefits and PAYE Settlement Agreements, need to be paid separately.

Ways to Pay

To pay your employers’ PAYE, you have several options depending on the timing and method of payment. The time required for the payment to reach HMRC varies based on the method chosen.

For same or next-day payments, you can approve a payment through your online bank account, make an online or telephone bank transfer, or pay by debit or corporate credit card online. These methods ensure prompt payment and are suitable if you need to make an immediate payment.

If you have set up a Direct Debit for HMRC in the past, you can use it for single payments, either through online or telephone banking or by Bacs at your bank or building society. This method typically takes three working days.

For automatic Direct Debit payments, which are set up specifically for HMRC, it takes four working days to process. This option is available if you haven’t previously set up a Direct Debit for HMRC.

If the payment deadline falls on a weekend or bank holiday, it’s crucial to ensure that your payment reaches HMRC on the last working day before the deadline.

Payment Booklets

Another payment option is to use payment booklets provided by HMRC. However, it’s important to note that HMRC no longer issues printed payment booklets. You can continue to use your payment booklet for the current tax year, but from April 2024, you won’t be able to pay at your bank or building society using a payment booklet.

While payment booklets offer convenience, the quickest and most secure way to pay is online. It’s advisable to explore online payment methods to ensure timely and accurate payments.

Direct Debit

Setting up a Direct Debit for your employers’ PAYE can simplify the payment process even further. With a Direct Debit in place, the payment is automatically deducted from your bank account on the specified date. This eliminates the need for manual payments and reduces the risk of missing payment deadlines.

To set up a Direct Debit, you will need to provide the necessary details and authorize HMRC to collect payments from your bank account. Once the Direct Debit is active, your PAYE payments will be processed automatically according to the agreed schedule.

In conclusion, paying employers’ PAYE tax is a crucial aspect of running a business in the UK. By understanding the various payment options available, such as online methods, direct debit, and payment booklets, you can ensure timely and accurate payments that comply with HMRC regulations. Choose the method that suits your needs best and stay on top of your PAYE obligations.

[thecrankiestofgremlins]

Aight imma go on a rant about employment law because that's what I'm studying and planning to put my career into. I should note this is UK law, however *some* of this shit is pretty universal. Also, obvious disclaimer, this isn't legal advice.

1. EMPLOYMENT LAW IS WRITTEN IN FAVOUR OF EMPLOYERS. THIS CAN MAKE THEM ARROGANT. UK employment law gives them a huge amount of leeway and is largely written in their favour, and they STILL regularly manage to go over the line to the point of absolute absurdity, to the point of accidentally creating beautifully complete evidence trails for employees to use in tribunal. Why do they do this? Because UK employment law is entirely enforced by individual employees and between the costs of a lawyer and the implied threat that if you take your employer to tribunal you'll never work in your field again (not universally true BTW), they assume they will never be taken to task for it. Employees are generally reluctant to take their employers to tribunal because of the above. What this means though, is if an employee *does* take them to tribunal, the evidence trail is usually extensive AS LONG AS the employee has taken steps to preserve it.

2. SAVE YOUR EMAILS. Any email sent to you by an employer regarding your employment in any way belongs to you. Send that shit to your personal email address, whether or not you think it's sketchy. For every employer. Keep your paper trail. You don't know when you might need it. This goes extra for things like performance reviews/flexible working/reasonable adjustment requests/etc.

3. NOT EVERYTHING IN YOUR CONTRACT IS ENFORCEABLE BY THE EMPLOYER. Employers *love* to stick exclusion clauses in or try to say that handbooks don't form part of your employment contract. They also like to do things like try to classify you as a self employed contractor when really, if you apply the relevant law, you are an employee and have the rights of an employee. Just because your contract says a thing doesn't mean it is the be all and end all. Think of it this way: if you only did what your employer required in writing in the contract, would they be pissed? If so, your contract is probably shit.

4. READ THE DAMN CONTRACT. Make sure you know the ins and outs of your job description, what's expected of you, your pay, overtime policy, where you're expected to work, etc. Just because you might not be able to negotiate it doesn't mean you shouldn't know what it says. This also goes for any employment handbooks. Know what the limits are, know what your hours are, know what your benefits are. Chances are good the employer will ask you to go above and beyond them, or try to pretend you don't have a contractual right to something when you absolutely do. Also, you *can* negotiate on more than you think. For example: employers are not allowed to make deductions from your pay beyond PAYE and National Insurance, UNLESS they have been contractually agreed beforehand. Check to see if they're trying to add a bunch of extra permitted deductions and *challenge* that shit if you feel able to. (My favourite is requiring supposed independent contractors to pay for a uniform. Highly unlikely that you're actually an independent contractor at that point plus fuck you if you want to control what I wear pay for it your damn self).

5. DO NOT OPT OUT OF NATIONAL WORKING TIME REGULATIONS. This is a pretty standard extra inclusion in most people's employment contracts in the UK. It shows up as an extra page of the contract with a separate signing line because they're not allowed to include that requirement as a contractual obligation (in most cases: the big exception is emergency workers) National Working Time Regs limit the amount of hours an employer can require from an adult (over 18) employee to 48 hrs on average, that average being taken over a period of 17 weeks. However, employees can opt out of this, hence the extra piece of paper. The employer cannot dock your salary/terminate your employment/treat you in any negative way if you do not sign this piece of paper. They include it with the contract so that people *assume* they have to sign it. If you're employed and have already signed it, you can opt back in by notifying your employer in writing. Generally this will mean a 3 month period before the regs apply to you again. But *do it*.

6. IF YOUR HOURS ARE VARIABLE, KEEP TRACK OF THEM INDEPENDENTLY. If you don't have a 9-5 contract, this applies to you. This is to make sure that if there's a dispute, you have a record that *you* made of those hours. Ya know, in case the employer decides to conveniently forget about them. I watched OXFORD UNIVERSITY try this shit in a tribunal and they got absolutely wasted because a) it was so obvious (they'd deleted hours spent on marking) and b) the employees had kept an independent record.

7. IF YOUR EMPLOYER DOES SOMETHING SHITTY, YOU HAVE 3 MONTHS FROM THE DATE OF THAT SHITTY THING TO SUE THEM FOR IT. It's one of the shortest time limits in UK law (remember when I said the law is written in employers' favour?), and that time is *only* paused when you involve ACAS (I'll explain ACAS in a sec) and the timer starts again once ACAS issues their certificate. It does NOT stop if you're trying to resolve the issue through internal grievance processes, and attempting to resolve the issue internally is not an acceptable argument if you're trying to extend that time (which you can, under specific circumstances, but try not to rely on that bc it's iffy at best) (yes you can also argue that there have been continuing acts but at that point you need to talk to a lawyer because there are specific rules around that too). There are. So many cases. That I've come across personally. That would be an absolute slam dunk EXCEPT they're out of time.

8. IF YOU WANT TO SUE YOUR EMPLOYER YOU HAVE TO GO THROUGH ACAS FIRST. Employment law is the only area of law where you are legally required to try to do mediation first. How much you engage with the mediation is up to you, however the more you do, the better it looks. Mediation does not mean you have to agree with the employer! It just means you get to ask them the questions you want to ask them in official channels. That said, if they roll over and give you what you want during these negotiations, you kind of have to take it: English law says that civil courts can only give you money as a remedy. As much as you might want to have your day in court, civil courts are legally only for getting money out of people, not primarily for the public administration of justice. Yes I hate this too. If you don't take it, the court won't like it and there is a potential that the court *could* award your employer their costs. ACAS can also give you help explaining how the process works etc. Make sure you contact them and start the process ASAP as soon as you decide the thing is worth suing over.

9. READ THE EQUALITY ACT 2010. There are 9 protected characteristics under UK law: age, disability, gender reassignment, marriage/civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. Broadly speaking, your employer cannot treat you negatively because of any of these characteristics. There are qualifications and limits to how far this goes, obviously, but broadly speaking, this is the case. I'll do another post later going into some of this in more detail because the topic is huge but taking a look at the sections that may apply to you is a good start.

10. NOT BEING ABLE TO AFFORD A LAWYER OUTRIGHT DOESN'T NECESSARILY MEAN YOURE OUT OF OPTIONS. First, you *can* represent yourself. It's not an option I'd suggest before you've exhausted all your other options but it is possible. The issue is that you probably don't speak legalese or have access to legal databases, but there is still research you can do on Google. Don't trust everything you read though. Law firm websites are a good place to start, as they tend to write decent articles on the basics of a given issue and they can point you towards some case law. You can also call Citizens Advice for a jumping off point. If you're representing yourself though, the only things you can really reference in court are a) legislation, b) case law, and c) practitioners texts. Remember, case law explains how legislation actually works: it doesn't apply to every situation you might think is covered by it.

Second, most solicitors firms offer free 15-30 minute consultations, where you go in, give them the basics of the situation, and they give you some advice and can signpost you to somewhere you can get more information. This can be really, really helpful and I'd suggest it even if you're planning on repping yourself.

Third, a lot of firms also offer something called a no-win-no-fee agreement, which is about what it says on the tin: if you don't win, you don't pay. Each firm will have different stipulations regarding these, so you should ask what these are. The problem though, is if the firm doesn't think you have a winnable case, they are unlikely take it on that basis (because that means they don't get paid and that's a lot of work not to get paid for). If you do win, they generally take a piece of your winnings as payment (so sometimes they won't do it because you're not claiming enough). It's not a guarantee, but IMHO it's a good option if you have a good case.

Last, there are the pro bono organisations. A lot of places will have a regional pro bono law clinic. These may or may not be able to take your case all the way to tribunal, but if not they should be able to refer you to an org that can. London and its immediate surrounding area has the Free Representation Unit, for example (your case has to be referred to them by another org, usually one of the clinics) but if they can take up your case, they can take it all the way to tribunal and even appeals. Since Legal Aid isn't a thing in employment law (except for discrimination), a lot of these organisations have an absolutely fucking massive caseload though, so there isn't a guarantee that they'll be able to take your case.

I'm sure I'll think of more to add to this later, but this is just the bare bones basic shit that *everyone* should know. A lot of cases don't get brought because people don't know that they a) have rights, b) they don't hold onto documents, c) they don't start the claim in time, or d) all of the above. Given that employment law is only enforceable by the individual, the only way to get employers to play by the rules more often is if people start enforcing it. It's a shit way to do it, but it's what we've got at the moment.

If people find this useful and would like this to be a regular thing, lmk.

[osserviie]

What is a Revenue form 11? | How to fill out form 11 in Ireland

In the complex landscape of taxation, navigating the intricacies of revenue forms can be a daunting task. For individuals and businesses in Ireland, one such form that holds significant importance is Form 11 Revenue. Designed to capture a wide range of financial information, understanding Form 11 is crucial for complying with tax regulations and ensuring financial transparency. In this comprehensive guide, we’ll delve into the intricacies of Form 11 Revenue, its purpose, who needs to file it, key deadlines, and essential tips for a smooth submission process.

What is Form 11 Revenue?

Form 11 Revenue is an annual tax return form used by self-assessed individuals, including self-employed individuals, company directors, landlords, and individuals with non-PAYE income. Its primary purpose is to declare income earned during the tax year and to calculate the tax liability owed to the Irish Revenue Commissioners.

Who Needs to File Form 11?

If you fall under any of the following categories, you are likely required to file Form 11:

Self-employed individuals: This includes sole traders, freelancers, and individuals running their own businesses.

Company directors: Directors of Irish companies, whether they receive salaries or not, are obligated to file Form 11.

Landlords: Individuals earning rental income from property in Ireland must also submit Form 11.

Individuals with non-PAYE income: If you have income sources other than employment income subject to Pay As You Earn (PAYE), such as investment income or foreign income exceeding €3,174, you need to file Form 11.

Key Deadlines

The deadline for filing Form 11 Revenue varies depending on how you choose to submit it:

Paper Filing: The deadline for paper filing is typically October 31st following the end of the tax year. For example, for the tax year ending December 31, 2023, the deadline for paper filing Form 11 would be October 31, 2024.

Online Filing: If you choose to file online via the Revenue Online Service (ROS), the deadline is extended to mid-November of the following year. Using ROS not only grants you an extended deadline but also allows for faster processing and electronic payment options.

Essential Tips for Completing Form 11

Filling out Form 11 accurately is crucial to avoid potential penalties and ensure compliance with tax laws. Here are some tips to help streamline the process:

Organize Your Financial Records: Gather all relevant financial documents, including income statements, expense receipts, and any other supporting documentation.

Use ROS: Opt for online filing through ROS for a more convenient and efficient submission process.

Seek Professional Assistance: If you’re uncertain about any aspect of Form 11 or your tax obligations, consider seeking guidance from a qualified tax advisor or accountant.

Double-Check for Accuracy: Review your completed Form 11 thoroughly to ensure all information is accurate and up-to-date before submission.

Meet Deadlines: Aim to submit Form 11 well before the deadline to avoid last-minute rushes and potential penalties for late filing.

Conclusion

Form 11 Revenue plays a pivotal role in Ireland’s tax system, serving as a means for self-assessed individuals to report their income and fulfill their tax obligations. By understanding its purpose, knowing who needs to file it, adhering to key deadlines, and following essential tips for completion, individuals and businesses can navigate the process with confidence and ensure compliance with Irish tax laws. Remember, when it comes to tax matters, accuracy and diligence are paramount, and seeking professional advice when needed can help alleviate any uncertainties along the way.

In essence, Form 11 Revenue is not just a form; it’s a tool for financial transparency and responsible taxation, ensuring that Ireland’s tax system operates smoothly and fairly for all.

Reference content : https://osservi.ie/what-is-a-revenue-form-11-how-to-fill-out-form-11-in-ireland/

[workpay]

The Best PAYE Tax Calculator in Zambia

The unemployment rate in Zambia in 2022 was 6.13%, decreasing by less than 1% since 2021. Unemployment rates are, of course, viewed negatively. However, smart employers see these rates as a talent pool eagerly awaiting the right opportunities.

Hiring and paying talent in Zambia could be a great opportunity for local and international employers. Companies get diverse skills and varied cultures, which benefit the financial and brand aspects of the businesses.

But hiring from Zambia also means taking the responsibility of PAYE taxes. Employers must make accurate deductions and remit the taxes to the correct authorities. This task warrants the use of good PAYE tax calculation software or service provider.

The information below explores PAYE tax compliance in Zambia and the best PAYE Tax Calculator in Zambia.

PAYE Requirements in Zambia

Like most African countries, Zambia applies a tax collection system on individual employees known as Pay as You Earn or PAYE. The method taxes employees based on their wages or salaries. This tax collection is a significant source of income that the Zambia Revenue Authority (ZRA) administers every tax year. The year runs starting January 1st to December 31st.

Employers must deduct the tax from employee salaries and remit it to the revenue authority. They do this for every employee and must submit the tax on or before the 14th of the following month.

Per the Income Tax Act, Zambia’s PAYE tax rates are progressive. So, the more an employee earns, the higher their tax rate. Below are the working individual income tax rates in Zambia:

Earnings in Kwacha (ZK) | Tax Rate

0 to K4,800 - 0% or no tax

K4,801 to K6,800 - 20%

K6,801 to K8,900 - 30%

Above K8,900 - 37.5%

Therefore, employers can calculate PAYE by summing the basic salary, commissions, and other earnings, then subtracting the deductions and exemptions per tax laws, determining the taxable income. With the resulting value, employers can apply the corresponding tax rate to the value and discover the PAYE.

What are PAYE Calculators?

PAYE calculators are software or digital tools that help employers and HR personnel calculate the income tax they must withhold from an employee's wages or salary per the country's tax regulations and laws.

These calculators are ideal for ensuring accurate and compliant tax deductions. Good PAYE calculators can:

Consider tax deductions. Good PAYE calculators consider the required deductions such as pension, healthcare, and other allowable expenses that reduce the taxable income.

Account for various income tax factors. PAYE calculators can account for deductions, tax allowances, and tax rates to calculate the right tax deductions for each employee.

Update tax rates and brackets. Good PAYE calculators update tax rates and brackets per changes to the legislature.

Remit taxes and payroll frequently. Employers can adjust the PAYE calculations for frequent payroll processing and tax deductions. Good calculators can offer weekly, monthly, and annual calculations.

Report. Good PAYE calculators can generate real-time reports such as payslips for employees and withholding tax summaries for employers.

Workpay Payroll: The Best PAYE Calculator in Zambia

Workpay is the best payroll management provider in Zambia. The solution makes payroll processing simple, effective, and, most importantly, accurate. The payroll feature helps with PAYE calculation in Africa, meaning employers in Zambia or with remote employees in the country can use the award-winning payroll, HR, and Benefits platform for accurate tax remissions.

Workpay Payroll Features

The Workpay payroll feature is an innovative and easy way for Zambian employees to ensure PAYE tax compliance while running payroll. Some features that make Workpay the best PAYE calculator in Zambia include:

Integration

The Workpay calculator fully integrates with payroll and other Workpay services. Employers use the software to streamline the payroll process into a single platform by pulling information from various sources such as ZRA and employee files.

In addition, Workpay integrates with services such as Employer of Record (EOR), allowing employers to make accurate deductions based on the taxing laws of the employee's country without setting up a local entity. Therefore, it ensures compliance with not just tax regulations but labor laws as well.

Accurate Calculations

Because the payroll feature integrates with taxation requirements, employers can expect accurate PAYE calculations for employees in Zambia. The calculation accounts for deductions and allowances and then aligns the taxable value of each employee with the corresponding tax bracket. The result is accurate tax deductions and salaries to individual workers.

Timely Payments

Payroll processing with Workpay is automatic, so employers can remit taxes to the ZRA on time with the peace of mind that their employees will also receive salaries on time. The payroll software can make quick calculations in seconds for multiple employees. Compared to human labor, it is much faster with the advantage of accuracy.

Self-Service

The payroll processor offers excellent convenience to both parties. Employers can conveniently access PAYE information and integrated services from web browsers and the app. Similarly, employees can access their information, payslips, and integrated services using the same methods.

Time-Saving

The Workpay PAYE calculator is fast and effective. It would take extensive time to calculate PAYE for each employee using human labor for a company with more than ten employees. Workpay makes these calculations in a few minutes, saving time that could go into other company processes.

Comprehensive Reports

Workpay provides access to comprehensive reports to employers. They can access PAYE reports in real time from anywhere for filing or referencing. These reports are useful if the company needs to prove compliance with labor and tax laws.

Customer Support

Lastly, Workpay offers employers 24/7 customer support and real-time assistance with PAYE calculations. It contributes to on-time tax remissions and employee payments.

Final Observation

As of 2022, Zambia's unemployment rate has experienced only marginal improvement, underlining the significance of opportunities for employers to tap into this skilled workforce.

Hiring and compensating talent in Zambia can be mutually beneficial. Nevertheless, it comes with a responsibility– the accurate calculation and remittance of PAYE taxes.

Workpay Payroll is the solution for this critical aspect of employment. Workpay's PAYE calculator stands out due to its key features: seamless integration, calculation accuracy, timely payments, self-service accessibility, time-saving capabilities, comprehensive reporting, and round-the-clock customer support.

Workpay Payroll is more than just a tool; it is a strategic asset that empowers employers to thrive in Zambia's evolving job market. Get in touch with us to begin your journey of compliance with Zambia PAYE requirements.

[fvckwithmefamo]

PAYE Online Payment: A Comprehensive Guide for UK Employers

Nowadays, making PAYE online payment is becoming the norm, and it offers plenty of perks. In the digital age, many of us are seeking ways to streamline our processes and tasks. This includes our financial obligations, and for UK employers, PAYE (Pay As You Earn) is one of those key responsibilities. However, the idea of paying taxes online might seem daunting to some. Not to worry – this…

[universalinfo]

FEDERAL STUDENT LOAN REPAYMENT PLANS: A GUIDE TO CONQUERING YOUR DEBT

If you’re feeling like you’re lost in a wild jungle of student loan repayment plans, fear not. In this guide, we’ll demystify the world of federal student loan repayment plans, equip you with different options, and sprinkle in some tips and tricks to conquer your debt like a pro. So let’s begin, shall we?

What Are Federal Student Loan Repayment Plans?

So, you’ve finished college, and now it’s time to think about repaying those student loans. But don’t worry, you’re not alone. Many graduates find themselves in a similar situation, and the good news is that there are federal student loan repayment plans designed to make the process more manageable.

Federal student loan repayment plans are options provided by the U.S. Department of Education to help borrowers repay their federal student loans in a way that fits their financial circumstances. These plans offer flexibility and various benefits to make it easier for you to stay on track with your loan payments.

Exploring Your Options

Now, let’s take a look at a few of the most popular federal student loan repayment plans:

1. Standard Repayment Plan 

This is the default plan that most borrowers start with. It involves fixed monthly payments over 10 years. This plan is great if you can afford to make the higher monthly payments and want to repay your loan as quickly as possible.

2. Graduated Repayment Plan

With this plan, your payments start lower and gradually increase over time. It’s perfect for those who expect their income to grow steadily over the years. The repayment term is typically 10 years as well.

3. Income-Driven Repayment Plans

These plans take into account your income, family size, and other factors to determine your monthly payment amount. There are a few different options, including:

Income-Based Repayment (IBR): It sets your monthly payment to a percentage of your income, allowing for potential forgiveness after 20 or 25 years.

Pay As You Earn (PAYE): This plan caps your monthly payment at a percentage of your income and offers potential forgiveness after 20 years.

Revised Pay As You Earn (REPAYE): Similar to PAYE, but without the income eligibility requirement, making it accessible to more borrowers.

Income-Contingent Repayment (ICR): Your payment is calculated based on your income and family size, with potential forgiveness after 25 years.

The great thing about these plans is that your monthly payments are capped at a percentage of your discretionary income, which means they can be more affordable, especially if you have a low-income or large family.

4. Extended Repayment Plan

If you have a significant amount of debt, the extended repayment plan might be a good fit for you. It allows you to stretch your repayment term up to 25 years, which can lower your monthly payments. However, remember that you’ll end up paying more interest over the long run.

Beyond the Basics: Specialized Repayment Plans for Specific Needs

So far, we’ve explored the world of student loan repayment plans, but there’s more to discover. In this section, we’ll shine a light on specialized repayment plans tailored to specific needs. Here are some of them:

Public Service Loan Forgiveness (PSLF): If you’re planning a career in public service, PSLF can be your golden ticket to loan forgiveness after making 120 qualifying payments while working full-time for a qualifying employer.

Teacher Loan Forgiveness: This plan rewards your dedication by forgiving a portion of your loan after teaching full-time for five consecutive years in a low-income school or educational service agency.

Perkins Loan Cancellation: If you have a Perkins Loan, you might be eligible for partial or full loan cancellation by working in specific fields such as teaching, nursing, or serving in the military.

Tips and Tricks: Mastering the Art of Student Loan Prepayment

Now, it’s time to unlock the secrets of student loan prepayment: our secret weapon to defeat debt faster than ever. Student loan prepayment refers to making extra payments towards your loan principal to reduce the overall interest you pay and shorten your repayment term. 

Here are some tips and tricks to level up your prepayment game:

Budget like a boss: Take a close look at your monthly expenses and identify areas where you can cut back. Redirect those savings toward your loan prepayment, and watch your debt shrink.

Automate your payments: Set up automatic payments to ensure you never miss a beat. Some loan servicers even offer interest rate discounts for autopayments, so it’s a win-win.

Increase your income: Explore ways to boost your income, like taking up a side gig or freelancing. Channel that extra cash directly into your loan prepayment and enjoy the satisfaction of crushing your debt.

Prioritize high-interest loans: If you have multiple student loans, focus on paying off the ones with the highest interest rates first. By targeting the loans that cost you the most, you’ll save on interest in the long run.

Avoid prepayment penalties: Before embarking on a prepayment spree, double-check your loan terms to ensure no prepayment penalties are lurking in the fine print. You wouldn’t want to be caught in a debt booby trap!

Celebrate milestones: Student loan prepayment can be a long and sometimes daunting journey. Celebrate your milestones along the way, whether it’s paying off a particular loan or reaching a specific debt reduction goal. Reward yourself for your progress and stay motivated.

Conclusion

Navigating the world of federal student loan repayment plans may indeed seem like a daunting task. But armed with the right knowledge and tools, you can confidently conquer your debt. By understanding the various options available to you, such as income-driven repayment plans, loan forgiveness programs, and refinancing opportunities, you can tailor a plan that fits your unique financial situation and goals.

Remember, reaching out for assistance is not a sign of weakness but a wise step toward financial freedom. So don’t hesitate to contact your loan servicer or seek guidance from a trusted financial advisor who can provide personalized advice and support.

While the road to paying off your student loans may be long, it’s essential to stay positive and persistent. Celebrate the small victories along the way, whether it’s making consistent payments or taking advantage of interest-saving strategies. Your determination and perseverance will eventually lead you to a debt-free future.

Content source: https://www.varelafinancial.com/sb/federal-student-loan-repayment-plans-guide/

[corruda]

Umbrella Company IR35

What Is IR35?

April 2021, the month that so many companies dreaded and for the first time in a year, it wasn’t because of Covid-19, it was the worry, the thought of being non compliant, April marked the new Intermediaries Legislation coming into effect. The act is known as the IR35 named after Inland Revenue, who are now of course known as HMRC.

The main aim of the legislation is to change the way in which business is dealt with. Medium and large sized businesses now have the legal obligation to determine the employment status of individuals that provide services to them. With great power comes great responsibility, once up to the individual person, the responsibility falls on the company.

Would you be compliant if there was a check today?

Umbrella Companies : Helping Your Company Comply With The Law

The legal obligation is taken very seriously, with life changing, potentially bankrupting fines for those found not complying with the law. Corruda’s liability calculator shows you the amount that you company could potentially be liable for, and if that figure strikes fear into you, then Corruda have a solution to help to ensure that you make a quick turn around into a compliant company.

The relationship between your company and any individual can be determined by HMRC to be not self employed, giving them the rights to backdate 6 years of PAYE and NICs.

The wording of contracts, and making sure that one is not a disguised employee is the overall aim of the legislation and tax benefits of limited companies are on the line should you get caught by HMRC.

How Will Your Status Be Determined?

HMRC reserves the right to conduct checks at any time of their choosing. The written contract is essential disregarded and HMRC instead look to consider the relationship of the contractor and the business – a ‘notional contract’

The following three factors are considered:

Control. The level of power that the business has over how, what, when and where the contractor completes the assignment is assessed. More control = likely to be inside IR35.

Substitution. Can  the work be completed by someone else or is it person-specific or contractor specific? The latter means that it is likely operating inside IR35.

Mutuality of obligation. Is there an obligation for the business to provide work? Is there an obligation for the contractor to accept the work? This would be seen to be operating inside IR35.

Work - Tax - Pay - Under The One Umbrella.

Umbrella Company IR35 : Contractors Aid

If you work through an umbrella company, you will be taxed as an employee. Paying employee income tax and employee National Insurance Contributions on the amount you are paid.

With minimal paperwork, more often than not IR35 caught workers prefer to use an umbrella company. Umbrella Company IR35 is the quick and easy way to ensure that you are compliant, with minimal paperwork, take home pay each week and help whenever you need it.

Impact On The Recruitment Industry : The Crackdown On The Contractor

With a huge rise in workload for hiring managers, companies are finding themselves needing to find new ways to attract contractors as the ‘pool’ of applicants has diminished. With the crackdown on IR35, many contractors are starting to look for permanent jobs, there are still many changes to come as this continues to roll out. If you are unsure about your status and whether you are compliant, then get in touch today with Corruda and get everything in order, without the stress.

[bambridgeaccountantsnewyork]

How do I File Tax Returns From Outside the USA as an Expat?

A common question we get asked by US expats is how their taxes are filed now they are overseas.

1 - REPORTING WORLDWIDE INCOME

US citizens need to report all their income on the US return, even if that income has already been taxed in their new country.

When you add your wages, salaries and self-employed income from your current country, you can claim any taxes you have paid as a foreign tax credit on the US tax return.

If the tax rate in the foreign country is higher than the US tax rate, there will be no further tax to pay. If the tax rate is lower that the US taxes due, then there will be a top up of the difference.

You also have the option to exclude foreign wages, salaries and freelance income if you are resident outside the US. The foreign earned income exclusion is claimed on form 2555 and you can exclude up to $107,600 from US income tax - you do need to declare the income on the return and then it will be excluded after.

If you still have US tax to pay, you have a third option, the foreign housing exclusion.

As a US expat living abroad, the filing deadline is June 15 (for 2020 this has been extended to July 15 for filing and payment).

2 - TAXES IF YOU ARE A US EXPAT LIVING IN THE UK

Unlike the US, the majority of people do not file tax returns in the UK.

If your employed income is under £100k, and you have no other income, then it is unlikely that you are required to file a return.

If you do have self-employed income, property rental income, foreign income, investment income or your salary is over £100,000 then HMRC will normally ask you to complete a return.

You need to register for self-assessment to file in the UK - you can use the link here.

The UK return covers the period 6 April 2019 to 5 April 2020 and the filing dates are 31 October 2020 if you file by paper, or the more common 31 January if your assessment tax return is filed online.

The tax liability is also due by 31 January and can be paid when you file your return online with HMRC.

3 - DOUBLE TAXATION FOR AMERICANS LIVING OVERSEAS

If you can show that you meet the residency test for your new country, and all your income is outside the US and from the new country, ideally there should be no US federal income tax.

As an example, if you are living in the UK, the tax rates are higher than the US and so there should be no US tax to pay when you file the US tax return.

Common exceptions are income that is tax free in the UK, like ISAs, premium bonds and selling your main home. The US will treat these as taxable income - if there is no UK tax charges, then there may be tax to pay on the US return.

If you have high income, there may be an additional tax, the Net Investment Income Tax (NIIT), that is charged on interest, dividends, capital gains and property income at 3.8% and is used to help with medicare in the US.

If you do have additional tax to pay in the US or the UK, you may be able to use the UK US double tax treaty. Tax treaties are there to stop you being taxed twice and also make it clear which country has the right to tax different types of income first. The general rule is that earned income is taxed primarily in the country that it is performed (irrespective of where that income is paid).

4 - OTHER TAX TIPS FOR US EXPATS

Once you move to the UK, as an employee you will be taxed by your employer each month under the PAYE tax system. If you join part way through the year, or change jobs during the year, always check the tax deducted at the end of the year (even if you don't file a UK return) as often people can find too much tax has been deducted and they are due a refund.

On the other side, if you receive a bonus towards the end of the UK tax year, especially if that bonus makes your total income over £100,000  - you may find that not enough tax has been deducted at source and HMRC may ask for additional tax.

A useful tax calculator is in the link here - you can check if you are due a refund or you owe any tax.

Finally, unless you are on a short term contract and have a waiver, you will be paying National Insurance in the UK and so there should be no social security when you complete your US tax return.

If you have any questions on filing your US tax return as an expatriate, claiming the tax reliefs, or catching up with your US tax returns - feel free to contact us here.

[financiallymint]

18 Easy Ways to Save Money in Uni

Yes, it is possible to save money even on a student budget.

In fact, it can even be fun too! I personally am going through these ‘easy ways to save money’ and still having a blast. Read on to find out what those are…

1. Attend university for free

Yes, it’s possible. In fact I wrote an entire post about it: Yes, you can go to university for free.

Your options include: grants, bursaries and scholarships, the NHS, Armed Forces, sponsorships, apprenticeships, crowdfunding and traveling abroad.

Not paying for university surprisingly does save a lot of money.

Check out the post fam.

2. House hack

Rent is takes a big chunk of your income every month. Many students just accept their fate and believe it’s part of the deal – gotta pay for rent. But what if you got to keep that £400 that disappears every month?

House hacking is possible: live with your parents, live with a roommate, get a flat and Airbnb the hell out of it, do some property investing or just go live in a tent like this guy.

It requires hustle and research, but it’s doable.

3. Become a minimalist

As the word itself says, learn to live with less. The less money you spend on stuff, the more money you get to save. It’s a simple idea really, and practicing it is strangely refreshing. To quote The Minimalists:Imagine living with less so you could have more time, more passion, more experiences, more growth.

Not only will you save a ton of money, but you won’t be falling trap of the consumer society; always buying and buying and consuming more to fill the empty void inside you. Ask yourself: does buying x really add value to my life? If it doesn’t, why are you buying it, really? And if that answer scares you, it’s time for a change.

4. Cook your own food

You would think this is obvious but many people including students simply don’t cook their own food! Eating out several times a week is EXPENSIVE. Takeaway is EXPENSIVE. There’s no point. Plus cooking your own food makes you better at cooking and even makes the food more delicious (yes hello this is my ratatouille and it is delicious).

Keep the restaurants and takeaways for special occasions. The more you eat out the less you appreciate it that event of having someone else prepare and lay it out in front of you. Going to a restaurant is a huge event for me nowadays – and now I enjoy it ten times more.

5. Do a ton of discounting

There are a lot of discounts out there for students. A LOT. You just gotta find them. Here is a list of cool stuff you can get student discount on. Get all the railcards and student cards, you never know when they can come in handy.

Look around when you’re on the streets or out shopping. There might be a student sale or some sweet discount out there. And don’t be ashamed to ask the barman whether they do student discounts – we’re all trying to survive here.

6. Hack your loan: start investing

Maybe a little more advanced but a great way to save and hack your money. Following the 15% rule, use the loan money to invest. The minute you receive your loan money, send off a percentage to get invested. Not only will you be saving money, but the interest means you’ll be earning more money on the side! I’m telling you – this is loan hacking. Here’s a guide to getting started with investing.

7. Set a budget every time you go out

Yes, your friends might make fun of you and call you a loser but no worries – you’ll be the one graduating with money in your pockets.

But seriously, set a budget. Take only cash, if that works for you. Use an app, do your thing. Learn to control yo’self. Here’s a snazzy guide to budgeting.

8. Compare all your bills: gym, phone, software etc

Take all your ‘mandatory expenses’ and try to decrease them. Your phone bill, the gym, that software, maybe even gas and electricity. Try and find someone else who does it for cheaper. Spend an afternoon on it and then forget about it – you could save hundreds in the long run.

9. Work towards achieving that 15% rule

The golden 15% rule: actively saving 15% of your income (from loan, parents, etc) every month. Here’s an entire article on how to get started.

This 15% rule is what will get you ‘out the rat race’ and will literally change your life.

Check out the post fam.

10. Do some savings challenges: no spend day, cash challenge, etc

There are tons of random savings challenges out there: no spend day, cash challenge, 33 items challenge. Try some and see how it goes. Here are 6 Different Money Saving Challenges you can try out.

Once you try a few of them, you can pick one and keep going. Make up your own challenge: how much money I can save doing saving challenges. Maybe a little nerdy, but useful in the long run.

challenge: how tall can the coin tower get?

11. Use savings apps

Just like the savings challenges, these apps will encourage you to save ‘by accident’. They use tactics such as rounding up a purchase: you spend £2.50 on a coffee and the app rounds it up to £3.00 and saves you £0.50. Or it just randomly takes out some money at odd times of the day/week.

The best savings apps are: Chip (read a review here), Monzo and Folio. You can also try out some investing with MoneyBox.

12. Do NOT buy the next cool gadget

Still not a minimalist? That’s fine, but there’s still no point in consuming for the sake of consuming. If your phone is working perfectly fine and the next version comes out – how about not buying it? Remember, will it really add value to your life? Probably not, and if you think about it will probably remove value since your pockets will be a little lighter.

13. Buy stuff second hand

The UK is one of the few places which is really good at this: second hand stuff. There are charities littered all over the streets and you can find a few gems here and there. You find stuff online too with our good friends Gumtree and Craigslist. Think about it, do I really need this thing to be brand new? If not, go do some second-hand shopping. You’d be surprised with what you can find…

14. Make sure your employer doesn’t make you pay tax

If you earn under £11,500 a year, you don’t need to pay tax. If you do, you pay 20%. When working at a part time job, it’s unlikely you’ll be earning more than your allowance, however your employer is still likely to put you under the PAYE scheme. Normally, the HMRC will send you a tax refund called P800. But if you want to claim it now, you can do so using a P50 form. Some nice quick and easy money.

15. Flat parties instead of going out

Going out in the UK is expensive, especially if you live in the area of London (I don’t know how you people survive). How about doing a flat party/drinks instead? With my group of friends we regularly do poker nights, board game drinking nights and even some home-cooking and chilling.

There are tons of ways to have fun without going out. Yes, I sound like a boring old trout, but it’s totally true. And if you’re friends are only interested in having fun when their ££ is flying away, look for some different friends who’ll chill at home with you. Trust me, they’re the cool ones.

16. No book buying

Google Scholar and Google Books can be your saviour for both research and text books. All the stuff the uni makes you pay for – how about getting it for free? And if Google Scholar and Books don’t have what you’re looking for, ask someone else at uni if you can buy their book second hand. Or… jump onto Gumtree or Craigslist. Doing a bit of hustling and finding cheaper textbooks can go a long way.

17. Find free stuff and use it

Students are known to be good at getting free stuff. Save the Student has an awesome list of free stuffyou can take advantage of as a student.

Other places to get free stuff are: Fresher’s and societies fairs, student gigs, only using free trial (Spotify here I come), using the Gumtree ‘for free’ section, attending launch days (a supermarket, cinema, shop opening up), and cashback apps.

18. Learn to travel hack

Travel hacking is the ultimate key to traveling for cheap and making it enjoyable at the same time. It doesn’t mean trying to cut every single penny and starving yourself all day, it’s simply being clever with your money: cooking at the hostel instead of eating out, not buying useless souvenirs, doing your research before taking public transport, etc.

After 2 years of traveling on a tight budget, I believe I mastered it using apps such as Couchsurfing, Ryanair and GoEuro. For more info on how to travel hack, I wrote a snazzy guide on mastering the art of budget travel.

So – 18 ways to save money as a college student. Some are easier than others, but they’re all doable. And the result could be hundreds or even thousands of pounds saved up! What could you do with an extra £1,000 a year? You could invest it, build an emergency fund, save up for a nice trip, or even get started on your path to Financial Independence. The possibilities are infinite, and you get to choose what happens with them.

Read more over at Financially Mint

[georgeshutcheson]

How to Register for PAYE

New Post has been published on https://www.fastaccountant.co.uk/how-to-register-for-paye/

How to Register for PAYE

Are you an employer in the UK? If so, it is important to understand how to register for PAYE (Pay As You Earn). PAYE is the system used by the HM Revenue and Customs (HMRC) to collect income tax and National Insurance contributions from employees’ salaries. To ensure compliance and avoid any penalties, it is essential to follow the correct process for PAYE registration. In this article, we will outline the steps you need to take to register for PAYE in a simple and straightforward manner.

Essential Information

What is PAYE?

PAYE stands for Pay As You Earn, which is a system used by the HM Revenue and Customs (HMRC) in the United Kingdom to collect income tax and National Insurance contributions from employees. Under the PAYE system, employers are responsible for deducting the correct amount of tax and NI from their employees’ salaries or wages before paying them.

Who needs to register for PAYE?

Any employer who pays one or more employees in the UK must register for PAYE. This includes businesses, organizations, and individuals who employ staff, regardless of the size of the workforce. It is important to register for PAYE as soon as you become an employer, even if you only have one employee or if you have casual or temporary staff.

What are the benefits of registering for PAYE?

Registering for PAYE not only ensures that you comply with UK tax regulations, but it also offers several benefits. Firstly, it enables you to accurately calculate and deduct the correct amount of tax and National Insurance from your employees’ pay. It also provides your employees with the reassurance that their taxes are being handled correctly and that they are contributing towards their statutory entitlements, such as state pension and sick pay. Finally, being registered for PAYE allows your employees to access other benefits, such as government-funded training and support.

When should you register for PAYE?

You should register for PAYE as soon as you become an employer, even if you don’t anticipate paying your employees immediately. It is a legal requirement to register before your first payday as an employer. In addition, you are not allowed to register more than two months before you start to employ people. Failing to register within the specified time frame may result in penalties and interest charges from HMRC.

Preparing for Registration

Gather necessary documents

Before you can register for PAYE, you will need to gather certain information. These may include:

Your National Insurance Number (If you are a sole trader)

The National insurance number of one of the directors (if you are a Ltd Company)

Your Unique Taxpayer Reference (UTR) if you are self-employed

Company registration details (if applicable)

Company UTR number (if applicable)

The date that you expect to start employing people

Registration method

The way you register for PAYE depends on the type of business. Most Limited companies can only register online through their HMRC business tax account. For other business structures such as sole traders and partnerships registration can be done through a business tax account or by completing an online registration form.

Registration Process

Through a business tax account

To register for PAYE through your business tax account, you will first need to create an online account on the HMRC website if you haven’t already got one. This account will serve as your portal for all tax-related matters. If you already have a business tax account, then log in to your account and register for PAYE.

If you are not a Ltd Company, you can choose to register via your business tax account if you have one. If you do not have a business tax account you can create one and then register your business for PAYE.

Submit online registration form

If you are not a Limited company, you have the option to complete an online registration instead of registering via a business tax account. This form will require you to provide detailed information about yourself and your business, such as your business name, your National Insurance number, your UTR Number, address, and contact details. Take your time to ensure that all the information provided is accurate and up to date, as any errors or omissions may cause delays in the registration process.

Once you have submitted the online registration form, you will receive a confirmation message from HMRC. This message will acknowledge that your registration has been received and provide you with a reference number for future correspondence. It is important to keep this reference number safe, as you will need it when communicating with HMRC regarding your PAYE scheme.

After Registration

Receive PAYE reference number

After successfully registering for PAYE, you will receive a PAYE reference number from HMRC. It can take up to 30 days for the PAYE reference number to arrive. This reference number is unique to your business and is essential for all future communications with HMRC regarding your PAYE scheme. It is important to keep this reference number safe and easily accessible for reference purposes.

Set up PAYE scheme

Once you have your PAYE reference number, you will need to set up your PAYE scheme. This involves stating the process of deducting tax and National Insurance from your employees’ salaries or wages and paying it to HMRC. You will also need to ensure that you are aware of your legal obligations and responsibilities under the PAYE system.

Submit regular payroll reports

As a registered PAYE employer, you are required to submit regular payroll reports to HMRC. These reports provide details of your employees’ earnings, deductions, and tax contributions. The frequency of these reports will depend on the size of your workforce and your PAYE scheme type. It is essential to meet the deadlines set by HMRC to avoid any penalties or fines.

Maintaining PAYE Registration

Keep payroll records up to date

To ensure compliance with PAYE regulations, it is crucial to maintain accurate and up-to-date payroll records. This includes keeping track of your employees’ salaries, benefits, deductions, and any changes in employment status. Retaining these records for at least six years is necessary to meet HMRC’s record-keeping requirements.

Notify HMRC about any changes

If there are any changes in your business, it is important to notify HMRC promptly. This may include changes to your company name, address, or contact details. Failing to notify HMRC about changes may result in incorrect tax calculations and potential penalties.

Ensure compliance with PAYE regulations

Compliance with PAYE regulations is essential to avoid penalties and fines from HMRC. This includes accurately calculating and deducting the correct amount of tax and National Insurance from your employees’ pay, making timely payments to HMRC, and submitting accurate payroll reports. Staying informed about changes in tax legislation and seeking professional advice when necessary is crucial for maintaining compliance.

Getting Help and Support

Contact HMRC helpline

If you need any assistance or have specific questions regarding PAYE registration or compliance, you can contact the HMRC helpline. The helpline is a valuable resource staffed by knowledgeable professionals who can provide guidance on various tax-related matters.

Use online resources

The HMRC website offers a wealth of online resources to help employers understand and navigate the PAYE system. You can access guides, tutorials, FAQs, and other useful information that will assist you in managing your payroll obligations effectively.

Consult an accountant or tax advisor

If you require further guidance or have complex tax matters to address, it may be beneficial to consult an accountant or tax advisor. These professionals specialize in tax matters and can provide expert advice tailored to your specific needs. They can help you understand your obligations, navigate tax legislation, and ensure compliance with PAYE regulations.

Frequently Asked Questions

What happens after registering for PAYE?

After registering for PAYE, you will receive a PAYE reference number from HMRC. You will need this reference number for all future communications with HMRC regarding your PAYE scheme. You will also need to set up your PAYE scheme and ensure that you comply with the regulations by deducting the correct amount of tax and National Insurance from your employees’ pay and submitting regular payroll reports to HMRC.

Can I register for PAYE if I have no employees?

Yes, you can register for PAYE even if you have no employees at the moment. Registering for PAYE will allow you to set up your payroll system and be ready to hire employees in the future. Additionally, registering for PAYE may be necessary if you have a director’s salary or if you are employing family members. It is important to inform HMRC if your circumstances change and you no longer have any employees.

Can I register for PAYE if I am self-employed?

No, if you are self-employed and do not have any employees, you do not need to register for PAYE. Self-employed individuals are required to report their income through the self-assessment tax system. However, if you later start employing individuals, you will need to register for PAYE and deduct the correct amount of tax and National Insurance from their salaries or wages.

[chapscontracting]

PAYE Umbrella Company:

The way an umbrella company works. The contractor becomes an employee of the umbrella company. This means that the agency will pay the umbrella company an umbrella rate, the umbrella company will deduct its costs (such as its umbrella margin, Employer’s NI, Apprenticeship Levy and holiday pay) and the remaining amount is then payable to the contractor as gross pay.

[workpay]

The Best PAYE Tax Calculator in Algeria

Most income categories in Algeria are subject to global income tax (IRG); therefore, employers are required to withhold a certain percentage of the employee’s taxable salary (above 30,000 Algerian Dinar). That percentage also includes the PAYE tax, which applies to all employees working in Algeria.

For this reason, employers need to be careful with their payroll processing to ensure PAYE tax compliance in Algeria. That also means their PAY tax calculation has to be accurate, and there is no better way to do it than using good payroll management software. Workpay, a payroll management solution provider, emerges as the best PAYE tax calculator in Algeria.

Why Workpay is the Best PAYE Tax Calculator in Algeria

Automation

Workpay payroll management system is automated, thus enhancing efficiency, speed, and accuracy (minimizing the risk of errors) in payroll processes like PAYE calculation and deduction. As a result, employers can easily remain compliant with tax laws in Algeria and also pay their employees the correct salaries after deduction.

2. Ease of use

Workpay offers its users a user-friendly interface that makes payroll management and tax calculation straightforward. Those in charge can easily input all payroll details, and the software will automatically calculate the PAYE deductions of each employee.

3. Real-time updates of tax laws

As is the case in most countries, labor and tax laws change regularly in Algeria. In such scenarios, PAYE tax is an affected element in salary deductions, and employers must adhere to it. With Workpay, employers get real-time updates on such vital issues, ensuring they stay compliant with the current regulations.

4. High data security

Security of employee data and other financial details in the payroll process is important. Workpay’s PAYE calculator is enhanced with robust security mechanisms to protect all processed data.

[bitchesgetriches]

So my partner thinks that he can just /not/ pay back his student loans and apparently hasn't paid for like 4 years. i know if you default on your loans you can have your wages docked, but i'm not really sure what else will happen? What's the worse thing that will happen if he just refuses to pay it back? what can i say to him to make him actually pay it back?

You should begin by making him listen to the two-part series on student loans by Death, Sex, & Money. There he will hear the firsthand account of a woman who also thought she could just not pay her student loans! Her experience might just scare him straight.

Ok, now that I’ve gotten that practical advice out of my system...

DAFUQ DOES HE THINK HE’S DOING?!?!?!! JIBBERS FUCKING ROLLERBLADING CRABST THIS IS LUNACY.

Here are a few things that can (WILL) happen if you do not pay back your student loans:

You can get your wages docked. This basically means the loan company will get your paycheck before you do, take what you owe them plus interest, and leave you with significantly less.

Your credit score will plummet. This means that if you want to do anything that requires good credit---getting a credit card, renting an apartment, buying a car, buying a house, getting a loan for anything---it’ll be significantly harder and more expensive. More on credit and how it works here.

Potential employers might use your credit score as a measure of your character and not hire you.

Your utility providers might demand payment up-front for several months, which is much harder to afford than paying month to month.

Your loan provider will report you to collections. This means you’ll have debt collectors literally knocking on your door to get the money back... plus interest and extra fees.

The government can seize your tax return in full to cover the cost of the loan.

Just because you’re not paying doesn’t mean you’re not earning interest. The interest on the loan is going to just keep compounding, meaning the amount you have to pay will increase the longer you ignore it.

You can be sued for the amount of the loan, plus interest and legal fees.

Student loans are NOT like other debt. You can’t declare bankruptcy to make them go away. They’re virtually impossible to escape. Which means that not paying them at all ever is literally not an option.

ALL OF WHICH IS TO SAY: If you can pay off your fucking student loans, you should absolutely pay them off. Even making a small effort to pay them off is better than doing nothing.

And this situation is soooooooo fucking frustrating because he had options! They’re not perfect, but literally anything is better than just ignoring a problem like student loans. For example:

He could apply for Income Based Repayment (IBR), Pay as You Earn (PAYE), or Revised Pay as You Earn (REPAYE). These programs readjust your loan payments to an affordable rate for your income.

He could consolidate his student loans with a program like Sofi, and get a lower interest rate and easier repayment terms.

The Public Service Loan Forgiveness Program, which forgives the entirety of the loan if you work in public service for a decade. (Though proceed with caution here as the program is currently in limbo and may or may not continue under the current administration.)

Call the fucking loan companies, explain his situation, and negotiate a payment plan with them that won’t involve them fucking up his credit report anymore.

If your partner has literally gone for four years without paying his loans, he’s already in serious trouble. Which means YOU are in serious trouble if you decide to stay with him.

If you hitch your financial wagon to his, you are at risk of at worst having your financial future dragged down with his. And at best, you’ll be paying more than your fair share for things in the relationship because he has to spend a greater proportion of his income on his loans. If you try to apply for a loan together, his credit score will prevent you from getting the best terms, or even from getting the loan at all. If you file a tax return together, you’ll risk losing all of yours to pay for his loans. Do you want to cover his half of the rent while he settles a case in court? Do you want to live with that financial Sword of Damocles hanging over your head?

In other words: his ignorance about his loans isn’t just hurting him. It’s hurting you and anyone else who might become financially dependent on him. So besides everything above, that’s what you should tell him: that he’s putting your relationship at risk.

Yes that’s right. I just advised you to leave his ass if he doesn’t fix this shit. And I’m not sorry about it.

This is a two-Bitch opinion. Kitty and I are texting about your question and we’re both fucking horrified.

I’m not being dramatic or heartless. I’ve known couples to break up or get divorced over far less serious money issues. I’ve known partners to end up with serious anxiety and stress over their partner’s financial ignorance or irresponsibility. He probably doesn’t even realize how much he’s hurting himself and you, but negligence does not excuse the damage he is doing. Your partner needs to figure his shit out or risk losing you along with his good credit.

And YOU need to take care to protect yourself. Do not cosign for ANYTHING with him until he takes measures to fix this situation. Do not share property, not even a pet. I’m sure you love him and care deeply about his well being. But the best way to help him at this stage is to encourage him to educate himself about financial stuff. You’re doing the right thing.

I want to write more about student loans and how shitty they are, so just know that’s coming down the pipeline. Also: relationships and money and how sticky they can get. In the meantime, here’s what we’ve written so far:

I Paid off My Student Loans Ahead of Schedule. Here’s How.

I Paid off My Student Loans. Now What?

The Debt-Killing Power of Rounding Up

[accountingservicesae]

Payroll Outsourcing for the Smaller Business

Payroll administration is essential for corporations utilizing people today under the PAYE (Pay As You Make) program. Even so, It is just a time-consuming undertaking finest remaining to gurus, Which is the reason lots of compact-to-medium businesses utilize a payroll outsourcing service.

Payroll administration makes certain that workforce are compensated the ideal income on time, with the correct deductions made. It is essential to keep precise, up-to-day data (both composed or electronic) for this, calculating Every employee's pay back and deductions in whole. Payments may possibly incorporate:

• Simple wages

• Extra time

• Commission

• Bonuses

• Statutory Unwell Fork out

• Getaway spend

• Statutory Maternity Spend

• Statutory Paternity Pay

In the same way, together with the cash flow tax and NI (Nationwide Insurance coverage) contributions which are deducted at resource throughout the PAYE method, employee wage slips may well checklist other deductions, such as:

• Trade union membership

• Membership to an experienced entire body

• Workplace pension

• Corporation wellness approach

• Scholar mortgage

• Non-critical organization 'perks' for instance a crèche or sports activities and social club

Businesses also shell out NI contributions on non-monetary Added benefits including a company car or truck. They're calculated at the conclusion of the tax 12 months, but still appear below payroll processing.

Despite having innovative software program it could be a daunting undertaking attempting to deal with all this in-household, Specifically specified the problems that may come up if issues are made. This is when payroll outsourcing comes into its possess.

Payroll outsourcing via an accountant

The phrase 'payroll' harks back to the days when compact organizations saved composed documents of their personnel, and laboriously performed NI and revenue tax calculations in-dwelling. With most firms now necessary to file their annual returns and in-12 months starter and leaver forms (P45 and P46) on the web, using the knowledge from their payroll data, specialised payroll software program is currently the norm. On the other hand, carrying out the process in-dwelling is still a time-consuming method, Which is the reason numerous companies choose to outsource it to the specialist supplier.

Even though there are several 'standalone' Payroll Outsourcing Companies in Dubai, it is smart to use a person accustomed to your organization. Most accountants are pleased to incorporate payroll processing to your listing of services they offer clientele; in fact, lots of firms have a devoted Division specialising in only this place. Should the accountant is already handling your enterprise affairs, They might properly offer you payroll outsourcing for a 'bolt-on' company in a aggressive rate. Alternatively, a newly established employer might be supplied A cost-effective bundle through which payroll administration is a component on the assistance.

Payroll outsourcing - more cost-effective than you may think

For a little outlay, outsourcing your payroll to an accountant has a variety of Added benefits, not the very least the assurance in figuring out personnel tax and NI deductions are effectively calculated, and HMRC payments designed by the due date. The associated fee differs In line with precisely what is included, however you can choose the level of support you would like, changing points as important.

By way of example, a business Outfitted with payroll processing software program can just ask for weekly or every month payslips being provided. If the amount of workers later reaches an unmanageable amount, the payroll outsourcing organization might take more than more of your in-household responsibilities.