Credit Cards

The employee retention tax credit is a refundable tax credit by an eligible firm between March 12, 2020, and before January 1, 2021, that wants to retain its staff on the payroll. The credit is 50% of up to $10,000 in wages paid by an employer whose company is completely or partially halted as a result of COVID-19, or those whose gross receipts have decreased by more than 50%. Employers who are qualified for the credit can get it right away by decreasing the amount of employment tax deposits they are needed to make.

Employers, especially tax-exempt organizations, are eligible for the credit if they run a trade or company in 2020 and experience one of the following:

• a complete or partial cessation of their trade or activity during any calendar quarter as a result of governmental directives restricting commerce, travel, or group meetings as a result of COVID-19, or
• a significant drop in gross receipts.

Availability of the Credit

Employers regardless of the size, notably including tax-exempt organizations, are eligible for the employee retention tax credit benefit. However, 2 exceptions apply for the availability of the credit:

1.   state and local governments and their agencies, and
2.   small enterprises that take out Small Business Loans.

To be eligible, the employer must fulfill one of two alternative tests. Each calendar quarterly, these tests are computed:

• if the employer’s business is totally or partially halted by government mandate pursuant to COVID-19 during that calendar quarter, or
• if the employer’s gross receipts are less than 50% of the same quarter in 2019. After the end of a comparable quarter in 2019, if the employer’s gross receipts exceed 80%, they are no longer eligible.

Impact of other reliefs or credits:

Other credits and relief laws affect a qualified employer’s right to claim the employee retention tax credit and some of which are:

• Employers who obtain a Small Business Interruption Loan through the CARES Act-authorized Paycheck Protection Program shall not be eligible for the tax credit.
• Wages used to calculate this credit cannot be used to calculate the credit for paid family and medical leave under Internal Revenue Code section 45S.
• Wages for this tax credit are not inclusive of wages in which the employer earned a tax credit there under the Families First Coronavirus Response Act for the reason of paid sick and family leave.
• If the employer is eligible for a Work Opportunity Tax Credit under section 51 of the Internal Revenue Code, the employees are not considered for this credit.

What is the procedure for obtaining credit?

The small company Employee Retention Credit allows companies to deduct 70% of an employee’s qualified pay up to $10,000 every quarter. The maximum credit amount per employee is $7000 per quarter. The employer’s Social Security tax burden is reduced by the credit. A refund from the IRS is received if the credit exceeds one’s Social Security tax liability.

Conclusion

Employers can receive immediate reimbursement for the credit by lowering the amount of payroll taxes deducted from employees’ salaries and deposited with the Treasury. In December 2020, the Employee Retention Credit was further extended by the Consolidated Appropriations Act (CAA or the Act). All employees don’t need to take advantage of the tax credit and employers who are eligible for the Employee Retention Credit may choose not to claim it.

Now that you have a credit card, you no longer need to worry about running short of cash when shopping. Plastic money is easy to carry and your favourite pair of jeans or that stylish watch that just caught your eye is only a swipe away. To enjoy the most benefits, you need to choose the card carefully. For instance, by choosing lifetime free credit cards, you have no annual fee to worry about.

You may be excited to apply for a new credit card, but here are five things to know before going ahead.

1. Repayment options

To avoid incurring interest on credit card dues, find out the due date of repayment and plan your finances accordingly. Plan your expenses such that you have enough funds to repay the dues on your credit card without any delay. While issuers offer a grace period, between the end of the billing cycle to the due date of repayment, it is not a good idea to wait till the last moment to transfer the funds. Set a date on your calendar to remind you to make the transfer a couple of days in advance. This way you can avoid any late fees or interest charges. But what if that’s not possible at times? Here are two things that can help:

1. If you had got a credit card with the lowest interest rates, you have less to worry about.
2. Convert the outstanding amount into EMIs. That way, you don’t pay any credit card interest. There may be a processing fee for this facility.

2. Rewards and offers

Be aware of reward points. If the card offers more reward points for online purchases, you can shift to buying most of your groceries and essentials online. When you apply for a new credit card, be sure to check if there is any expiry date for reward points. Choose an issuer that offers unlimited reward points, which means there is no expiry date. Also, keep an eye on the various offers. There may be discounts and cashbacks on several purchases, including flight and hotel booking, as well as certain facilities like free access to airport lounges.

3. Spend within the credit limit

To avoid over-the-limit fees, keep your credit card expenses below the credit limit. In case your monthly expenses are higher, you can always pay for some things in cash. Else, apply for a new credit card with a higher limit. If you do so, choose lifetime free credit cards, so there are no annual charges to worry about.

4. Credit card security

If your cash gets stolen, it’s hard to trace it and even harder to get it back. If your card gets stolen, you can simply call the issuer and have the card blocked immediately to prevent any fraudulent transactions. Even if there is an unauthorised transaction after your card is stolen, the issuer bears this risk. To keep your card from being misused, never share its details, like the PIN or CVV number, or transaction verification codes like OTP with anyone.

5. Build your credit score

Use the credit card frequently and repay the dues in time to build your credit score. As long as you have the ability to make the repayment in time, don’t hesitate from using your credit card. A high credit score stands you in good stead when applying for a loan.

While credit cards with no annual fee help, your financial planning and discipline can maximise the benefits.

Credit cards have been bad news for so many people all around the United States and globe. Some people believe that credit card use can get them out of significant financial ruts of all sorts. The consequences that are associated with credit card doubt, however, are in many cases substantial, devastating and lasting. Renaud Laplanche is a man who knows this all too well. He believes that the negatives that are linked to this kind of debt are more than abundant. LaPlanche thinks that credit cards can push people into lasting debt dilemmas that are hard to exit. The majority of credit cards that are out there have monthly minimum payment requirements that are pretty insignificant. The aim behind this isn’t to be kind. It’s to encourage people who have credit cards to owe money for extended spans of time. Why is that? It’s because it paves the way for credit card firms getting more interest. High balances and credit card company profits go hand in hand, after all. Businesses that offer credit cards tend to get billions and billions annually on income that’s associated with interest, believe it or not.

Steep rates are never a welcome thing for anyone. If an individual has a strong credit score, she may have a rate for her credit card that’s pretty steep. She may have a rate for a store credit card that’s worse, too. Outstanding credit ratings do not protect individuals from rates that are unpleasant and unreasonable. People who want to steer clear of the stresses of having to manage outrageous card rates often have no option but to nix the world of debt entirely.

Significant fees are par for the course in the universe of credit card debt. Businesses that focus on credit cards tend to burden their customers with all sorts of inexplicable fees. They have yearly fees in place in many situations. They have fees that are connected to getting cash advances. They have fees that involve balance transfers. If a person who has a card makes a payment that’s a little late, there are fees for that, too. The fees can often seem overwhelming. People who don’t want to have to spend an arm and a leg on all kinds of mystery fees often realize that credit card debt just isn’t worth it at all. It can be difficult for people to be able to keep track of fees that are part of penalties, interchange income, interest income and beyond.

Credit card firms sometimes give people messages that aren’t exactly healthy. That’s because they in many circumstances try to push people to use higher amounts of money. They do so by dangling the possibility of “rewards” in front of their eyes. It isn’t atypical for credit card companies to try to get their clients to set aside cash for things that are 100 percent frivolous. This can contribute to a debt rut that can lead to lasting and substantial consequences for many people of all ages.

As far as getting to compare credit cards Singapore is concerned, Maybank comes across as the peak one of the lot as it is known to offer for best credit cards that scores in terms of dependability and services.  If you are someone who likes to exchange your points for air miles, shopping as well as dining vouchers, discounts and coupons for gifts then you can very well go for the reward points accessible by Maybank.

It also provides one the capacity to earn points for everything spent on the card, with most banks presenting accelerated points when you spend at specific merchants or that of assured categories.

In today’s society, if you want to buy any big-ticket item, you need good credit. Example of these things are houses, cars and any other item requires payments for over a year. Your credit score lets lenders know how likely you are to pay them back on time. This is not the only use for it, depending on your actual score, will determine the interest on the said purchase. The better your score, the less interest you will pay and vice versa with a poor score. You can even be denied financing if your credit it too low. But, how does credit scores work and how can you achieve a high credit score?

Let’s break down how your credit score is decided. There are four different categories that make up your credit score and some weigh heavier than others. Here is a quick break down of these categories.

1. Payment History makes up the largest factor out of all the four. Lenders take a hard look at an individual’s payment history, to see if you have a history of paying on time or not. So, if you have never missed a payment, you will get a good boost from this category.
2. Next is your outstanding debt. If you have a tendency to keep your cards at their limits, you can do serious damage to your credit. This tells lenders ta=hat you are barely holding on financially. Which can make lenders uneasy.
3. Length of credit, the longer you have had credit, the more information there is on you. Which can paint a better picture of you to a lender.
4. Types of credit that you have had is the last factor. Having debt to a wide variety of things, like cars or small loans. Can show case the experience you have with dealing with different kind of credit and make you more appealing to new types of credit.

This information is great to help beginners, but what happens if I want to raise my credit? Well that becomes a bit trickier then just keeping good credit. Most of the time, you can fix your credit over time and proper financial habits. But, if you want to repair your credit score fast there are services that you can hire to help raise it. Though keep in mind these services do take some time. Another big issue to worry about are fraudulent services that don’t help you and take your money. The best way to weed these companies out, are to research them and find customer and professional feedback from multiple sources. Companies like these will promise you that they can get things removed from your credit. Which in certain cases that can be true, that is often on some very strict criteria and cannot be just simply removed. Be wary of these kinds of services that promise so much. But, there are services that can help improve your score faster than on your own. Just be mindful when dealing with your credit.

Your credit score is a valuable tool when trying to get a loan. It is important to take care of it and maintain a high score. But, don’t be concern if you have a low score. With proper steps and some professional help, you can restore a credit score to a high value.

In case, you have been attempting to rebuild your damaged credit, store credit cards might be a good option. Rather than bank credit cards, store credit cards have been relatively easier to be approved. Moreover, in case your credit has been damaged, you might still qualify. It has been deemed highly imperative to use them solely for rebuilding your credit. In case, you overspend or misuse the cards, you might easily wind up with credit difficulties again.

After you applied and sought approval for store credit card, you should make restricted purchases and pay your balance in full every month. These kinds of credit cards usually have a higher interest rate. They would let your balance enhance steadily and could cost you plenty of money in interest charges. Ensure you pay on time and in full every month. In case, you feel as if you have waited too long to mail your payment, you should go to your customer service department in the store and pay your bill in person. You should keep in mind that merely because these kinds of credit cards have been easier to be approved, it would not mean that you should apply for several of them. When lenders would look at your credit report and point out several open credit accounts, they would appear less favourable upon your request for additional credit.

Benefits offered by credit cards

After you have established a payment history with your store credit card, you would have to decide whether it has been in your best interest to keep the card. In case, you have built up your credit adequately, you would be advised to close these accounts. The bank issued credit cards have been known to offer relatively lower interest rate to make the same purchases. A majority of people think of only purchasing gas with a gas station credit card, but the fact has been that the cards could be used for repairs provided your car breaks unexpectedly. You could also use the card for buying meals and snacks while travelling, as a majority of gas stations in remote locations have fast food establishments or restaurants located inside. Gas station credit card might also cater you with rewards such as discounts on hotels, travel, insurance and car rentals.

Benefits offered by store credit cards

Benefit of store credit cards would entail carrying of a wide range of items and products such as tools, appliances, cosmetics, house wares, clothing and jewelry. These have been just a few of the items or products that you could find inside most major department stores. Holiday purchases could also be made with a store credit card along with necessary items for special occasions and gift giving. Always remember to keep your spending manageable along with paying your balance in full every month. Higher interest rates that usually accompany gas station and department store credit cards could add up provided you do not monitor the spending prudently. The point has been to rebuild your credit, not to acquire additional debt that you cannot afford to pay back.

Author Bio Willie DeJarnette has been known for providing great store credit card related articles and blogs. The all-encompassing knowledge of the writer would enable you to lay your hands on the best store credit cards and make the most of the benefits offered.