Home Blog Page 4

5 Tips When Dealing with Investment Property Loans

0
investment property loans
Jesse Roberts/Unsplash

Investing in real estate is an exciting endeavor, but it can also be tricky—particularly if you’re new to the game. There’s a lot to consider when you’re looking for a property. Is it in a good area? Has it been maintained properly? Will you be able to rent it for more than what your mortgage and taxes cost? What are the current mortgage industry trends? Once you’ve finally settled on the rental property of your dreams, how will you finance it? Let’s take a look at five key features you should pay attention to when it’s time to finance an investment property.

1. Make a Sizable Down Payment

Depending on the type of loan you’re going for—and the type of property you’re looking to purchase—the required down payment will vary. For most loans, you’ll need to put at least 20 percent down, but if you qualify for an FHA or other types of loans, you might be able to get away with as little as 3.5 percent down. The more you’re able to put on the table, the more likely a lender is to consider your application because your cash shows that you’ve got skin in the game.

Bear in mind that if you’re not planning to live in the residence, meaning you purchase a single-family home or a multi-family property in which you won’t reside, you may be asked to put as much as 30 percent down to secure your loan. This leads to the next point.

2. Know What Kind of Property You Want to Purchase

If you’re planning to live in your residence full time, it’s usually easier to qualify for a mortgage. You won’t need to put as much money down, and you’ll have fewer hoops to jump through during the application process. If you won’t be living in the property, however, the process is often more difficult. That’s not to say it’s impossible, and it’s a great idea for landlords who are up to the challenge. But, it is important to understand that banks and lenders view applicants who won’t be living in the property very differently.

3. Consider Different Types of Loans

There are many different types of loans, and some are better for certain investors than others. Here’s a quick review of some of the most common loans investors use when they’re purchasing rental properties:

  • Conventional Loans. This is the type of loan most people are familiar with; it relies on your credit score, which needs to be at least 640 if you have a 25 percent down payment. The higher your credit score, the lower the down payment you’ll be required to put down. Lenders also look at your debt-to-income ratio, and it’s essential to understand that future rent you might obtain from the property is not factored into your income.
  • Home Equity Loans. If you already own your own residence, you might be able to tap into existing equity to finance the purchase of an investment property.
  • Hard Money Loans. Cash for hard money loans comes from individuals and companies who are specifically interested in real estate investments. They’re typically faster to secure than conventional mortgage loans, but they’re usually only available for a short term, meaning you’ll be required to pay your investors back reasonably quickly.

4. Turn to a Local Bank or Credit Union

Local banks and credit unions often have the ability to be a little more flexible with their lending practices than big national banks. They’re also more likely to know the local market and be able to offer suggestions that are most suitable for your unique situation. It’s a lot easier to build a relationship with people at local organizations. Because they’re more likely to keep your loan in-house (rather than selling it to another mortgage company), you won’t likely have to deal with changes to payment addresses and online information mid-way through your loan.

5. Consider Using a Mortgage Broker

Mortgage brokers are people who are well-connected within the industry. Not only will they shop around for the best interest rate, lowest down payment, and loan types you might not have considered, but many of them will be able to put you in contact with professional property management services, handymen, cleaning companies, electricians, plumbers, and all the other people you’ll need to ensure your rental property goes right after you’ve secured your loan.

The more homework you do upfront, the easier it’ll be to obtain your investment property. When you’re armed with these five tips, the process should be a little more straightforward, and before you know it, you’ll be looking for your first tenants. 

Your Ultimate LendJet Review for 2020

0
lendjet reviews

If self-sufficiency was a choice, there is no doubt each one of us would go for it. However, it is not, and every once in awhile, we tend to find ourselves in money fixes we never thought we would. For instance, medical emergencies, late rent, unforeseen expenses, debt consolidation, and a long string of other money-emergency situations that can quickly drive us crazy. In such scenarios, some people are often lucky as they can get friends and family to help out. However, most of us are left stranded with no option but to look for personal loans.  The good news is that with platforms like LendJet, now these emergency loans are an inch closer whenever the need arises.

LendJet at a glance

  • You get get a personal loan from $1,000 to $10,000
  • Generally, you do not need to have excellent or good credit to qualify for a personal loan
  • Estimated APR is 6.95-35.99%
  • It’s a trustworthy way to get funding
  • You can simply complete the online request form and get an answer instantly
  • Get started at LendJet

Compare with other lenders

LENDERRATES (APR)LOAN AMOUNTVISIT
sofi personal loan5.99% – 18.82%$5,000 to $100,000GET MY RATE
credible personal loans5.95% – 35.99%$1,000 to $100,000GET MY RATE
lendingtree personal loan99.00% – 199.00%$500 to $4,000GET MY RATE
upstart personal loans8.13% – 35.99%$1,000 to $50,000GET MY RATE
upgrade personal loans7.99% – 35.97%$1,000 to $35,000GET MY RATE

» MORE: Compare online loans and pre-qualify

Full LendJet review

What is LendJet? LendJet is a personal loan platform where borrowers with all types of credit history can secure emergency loans of up to $10,000. However, even though it’s a personal loan program, it’s vital to note there is a significant difference between LendJet and other applications.

 Why? Well, LendJet is neither a bank, nor a lender. It is simply a platform where borrowers of all credit histories are connected to a bunch of lenders who offer fast cash solutions. Even though the platform is relatively new, it’s already taking over the scene due to factors such as quick approval rates as well as the easy loan application. Hence LendJet can be referred to as a lenders marketplace. 

How does LendJet work?

The loan application process on LendJet is pretty straightforward and takes only four steps. To apply, visit the site, fill in your personal information, indicating details such as your employment status, your income, the purpose of your loan as well as the amount of cash that you need.

The application is pretty simple, but it tells lenders all they need to know about you before they cash you out. Depending on this information, LendJet then connects you to a long string of Lenders who match your criteria. If the terms are appealing, all you need to do is accept the loan, and LendJet will ask you how you want to receive the money. The best bit about this platform is that it has a fast-approval rate, and depending on the amount you’ve borrowed, you can get it as soon as the next business day. What’s more, is that you can qualify for a loan even with poor credit.

The loan repayment terms often vary from one lender to another. However, in general, LendJet usually offers monthly or bi-monthly repayment options. As for the repayment period, it may be as short as 12 months or as long as 60 months. This again depends on the specific requirements of your lender. 

Is LendJet legitimate?

Wondering about the legitimacy of LendJet? Then you should not as the platform is 100% legit for several reasons. First, the platform is free! Unlike most lending platforms that require you to pay a certain amount of money upfront for you to unlock access to the loans, LendJet doesn’t charge you a dime. However, note, the lender you work with might have fees as part of their repayment terms. That should not worry you because even in regular money-lending situations, you pay such fees.

Also,  even though the loan application process is easy, it’s not as dramatically easy as with most other platforms. You must first fill in your information so borrowers can get all the necessary history on you, to keep the process safe and legal.

Also, since cybercriminals are increasingly targeting personal and financial information, LendJet not only complies with the industry data protection standards but also goes the extra mile to safeguard the safety of your data by using 256-bit SSL encryption. The only party with access to your sensitive information is the lender you choose.

So the short answer to whether LendJet is legit is YES.

Does LendJet check your credit?

Although you can qualify even when you have filed for bankruptcy, LendJet does not perform a credit inquiry. It is simply a lenders market, and all it does is connect you to lenders who’ll help you out. That said, some lenders will often review your credit history before cashing you out, but not all of them. Therefore, LendJet does not check your credit score, but the lender might.

What are other LendJet reviews saying?

So far, most of the LendJet reviews have one thing in common; they are all positive and reflect our review as well. Previous borrowers have left testimonials saying how the platform has helped them in the past with situations such as education funds, business loans, and debt consolidation.

A majority of them are impressed by the fact that the repayment period can be as long as 60 months, hence gives them the flexibility to pay at their own pace. 93% of those who’ve used the platform reported that they would gladly use it again if need be. Other factors that LendJet users are happy about include the top-notch customer service and the smooth sailing loan application process.

Pros

  • Unsecured personal loans do not require any guarantee
  • Increase your credit score
  • Get the money you need quickly
  • Good credit can give you a lower interest rate
  • Most are fixed-rate loans, which makes budgeting easier

Cons

  • Approved borrowers with subprime credit could receive higher interest rates

Apply on LendJet

Whether you like it or not, financial problems are inevitable. So it’s normal to need financial help every once in a while. LendJet looks to be your go-to solution when any unforeseen problem arises.

GET STARTED WITH LENDJET

Prosper Loans Review: Is it Legit?

0
prosper personal loans review

Prosper Loans is a leading online lender that offers personal loans to borrowers with competitive rates. Prosper is a peer-to-peer lender, meaning your loan typically will come from individual investors.

Prosper offers unsecured personal loans that can be used for almost any purpose, including debt consolidation, a wedding, home improvements, or whatever you need the money for.

Prosper loans require a fixed monthly payment over three or five years.

Just to begin our Prosper loans review, if you are hoping for getting cash on the same day, Prosper is not the lender for you. Because your loan is paid by several investors instead of one, you will not receive your money immediately. If they think you’re a good credit risk, your loan could be funded very quickly. If not, your loan may not get funded at all.

Prosper loans at a glance

  • You get get a personal loan from $2,000 to $40,000
  • Generally, you’ll need a good credit score of over 640
  • Estimated APR is 6.95-35.99%
  • It’s a trustworthy way to get funding
  • You can save thousands with a fixed low rate
  • You can use it to consolidate credit card or other debt into a single personal loan
  • Get started at Prosper.com

Compare with other lenders

LENDERRATES (APR)LOAN AMOUNTVISIT
sofi personal loan5.99% – 18.82%$5,000 to $100,000GET MY RATE
credible personal loans5.95% – 35.99%$1,000 to $100,000GET MY RATE
lendingtree personal loan99.00% – 199.00%$500 to $4,000GET MY RATE
upstart personal loans8.13% – 35.99%$1,000 to $50,000GET MY RATE
upgrade personal loans7.99% – 35.97%$1,000 to $35,000GET MY RATE

» MORE: Compare online loans and pre-qualify

Full review

A personal loan from Prosper offers a few different unique benefits compared to other lenders. To qualify, Prosper uses its in-house rating system to score your credit profile. This profile is shown to investors who decide if they want to fund your loan. If your loan isn’t funded, then your application expires.

Interest Rates:6.95-35.99%
Loan Amounts: $2K to $40K
Loan Terms:3 -5 years
RequirementsFICO score of 640 or above
DTI ratio below 50%
No bankruptcies (in last year)
Fewer than seven credit bureau inquiries in the last 6 months
Minimum of 3 open trades on your credit report
Good ForPeople with less than established credit
Worst ForPeople who need the funds right away
Better Business Bureau RatingA+
In Business Since2005
Standout FeaturesFixed-rate loansBorrow up to $40,000
No prepayment fees
Checking rates doesn’t affect credit score

How the process works

Consolidating debt? Paying for a large expense like home improvement or a special occasion? Prosper has you covered. Here’s how the process would work:

1. Get a low rate

You apply first and you’ll get a loan with a low, fixed-rate that never goes up. Check your rate online instantly here.

2. Pay at your own pace

Pay off your loan with fixed 3 or 5-year terms, and a budget-friendly, single monthly payment.

3. Save money with Prosper loans

Save money with no pre-payment penalties.

Prosper features

Available for those who have insufficient credit: Prosper is a good choice for those who have been denied by banks and people who can not get a reasonable interest. It is one of the best bad credit loans. Prosper offers loans to people with a FICO score of only 640. Although high-risk borrowers have to pay higher interest rates, they are certainly cheaper than what you could get with a lender.

Fixed-rate loans: All of Prosper loans are delivered with a fixed interest rate so that in the long term you do not have to worry about an increase.

Borrowing up to $ 35,000: With Prosper, you can borrow between $ 2000 and $ 35,000. Most personal lenders do not allow you to borrow more than $ 25,000. Prosper is the right choice if you need to borrow more money.

Fast online application: by answering a few basic questions about yourself and your finances, you receive an estimate of your interest rate.

Limited loan conditions: Prosper requires that you choose a term of three or five years. While this should be good for most people, most lenders give their borrowers more flexibility when repaying their loans.

No Early Redemption Fee: If you decide to repay your loan before the end of the term, no extra costs will be charged to compensate for lost interest.

Earn money by investing: If you have money, you can earn some by paying part of the loans of other people. When they repay the loan, you receive the money that you have invested plus interest. The amount you earn depends on the interest rates of the loans to which you have contributed.

Mobile money management apps: Prosper mobile apps for iOS and Android devices help you track your spending and credit over time. Register all your purchases to see how you spend your money and look for chances to save. You can add protection against identity theft for an extra charge.

How you get your funds

The first step to check your first. You visit the Prosper official site and select your loan amount, answer a few questions and get your lowest eligible rates instantly. Then you’ll choose your loan and choose the offer with the terms that work best for you. Next, if approved, your money goes straight to your bank account via direct deposit.

Is Prosper legit?

It can be considered a smart choice to think about getting a personal loan from Prosper, as they offer you the opportunity to get money that can really help you out of a bind.

This bind will come and go, but the credit score increase that you will get will only provide you with a stronger financial platform from which to work with. When you make payments to Prosper, that meet the timeframe that was laid out you will be establishing credit.

This credit will serve as a strong point when you need to apply for other various forms of credit, such as store line credit or a future loan. Once you have paid back in full the money you borrowed from the prosper, they will report to the three major credit agencies and inform them on your payment history with them.

This will go on record and will be shared with other various lenders and credit companies. Good reports go along way when it is in regards to money borrowed.

Pros

  • Unsecured personal loans do not require any guarantee
  • Increase your credit score
  • Get the money you need quickly
  • Good credit can give you a lower interest rate
  • Most are fixed-rate loans, which makes budgeting easier

Cons

  • Prosper charges start-up costs that are equal to two to five percent of your borrowed amount.
  • Bad credit may result in the rejection of your application.
  • Approved borrowers with subprime credit could receive higher interest rates
  • Many come with start-up costs or borrowing
  • You may not get your money right away, so it’s important to remain patient. If you wanted to compare other quicker personal loan options, check here.

Apply on Prosper

Prosper is a good option for those who want to reduce their monthly payments and want to repay their loans over a longer period. Times are fixed at 36 or 60 months – and if your financial situation improves and you can pay faster, no penalty is imposed.

Prosper is the right choice if you need a loan, but are not eligible for conventional financing. Interest rates are reasonable compared to most credit cards and there are no prepayment costs.

GET STARTED WITH PROSPER

How Technology is Changing the Mortgage Industry

0
mortgage industry

Technologies that have revolutionized other industries are–finally–revolutionizing the mortgage industry as well.

Technology has changed every part of our lives, from socializing, shopping all the way to property buying. 

One way that the property industry is changing is with mortgages. With new technology being introduced, gaining a mortgage has changed dramatically. 

Believe it or not, technology has revolutionized how we apply for and obtain a mortgage. 

In the past, some even states offered free land or to apply for a mortgage, we would have to drop by the local bank or mortgage lender and speak to a Loan Officer. This could be lengthy and intimidating – and didn’t always promise the result that you wanted. 

Now, you can send, receive, and manage all your documents without even meeting face-to-face. 

So, how has technology completely revolutionized the mortgage industry?

Below, we explore the main changes that technology has brought on the mortgage industry. 

mortgage industry

Consumer expectations 

There is now a consumer expectation that at least part of the process will be online or digitally. 

Even if this means that customers will be able to communicate with their bank or loan lender, in the same way, that they would anybody else. 

There’s undoubtedly an increase in consumers wanting to submit documentation electronically. The challenge in the mortgage industry is keeping everything secure, as well as accessible. 

Technology has completely changed how we apply, communicate for, and manage our mortgages. 

Regulations 

One of the main challenges that the mortgage industry has, in terms of technology, is to work within the regulatory framework. 

The main issue is, particularly with anti-money laundering. Lenders have to prove that a customer is telling the truth about their identity and that security is adequate. 

While technology has undoubtedly simplified some processes, they still tend to do things in a formulaic manner. The most significant change will be the addition of a single source of application data. 

Regulations are always a main concern, especially regarding money. Technology will unquestionably solve many of the regulatory issues in the future. 

Automation 

Technology is convenient, nobody can deny that. 

Many people have embraced automation and technology, noticing that it removes any wasted effort from the mortgage process. 

Specialist mortgage markets should not be threatened by automation, either. The complexity of their cases means that bespoke and personalized services will always be needed – automation just makes tedious tasks a little more manageable. 

Robo-underwriting will never replace the human element in the process, it will only make it a little more straightforward. 

Also, sourcing systems can immediately respond to applications with a quote and any information that they’ll need. 

Risk-based pricing 

Many organizations may be rich with data, but do they genuinely know their customers? 

Collecting the right data from people means that you can get risk-based personalized pricing. 

Technology has already improved how we collect data, and also how we organized it. 

AI

AI is arguably the primary way that technology has transformed the mortgage industry. 

Lenders are turning to AI to reduce the time and cost it takes to close a mortgage. 

AI is driving a new generation of software that will automatically process mortgages and replace slow and costly manual processes. 

AI will also make OCR technology more obsolete. You might already know, OCR was invented almost a century ago – and it just feels outdated. 

OCR is expected to give way to AI, which will enable machines to read content and react. This means that manual document processing is replaced by software-based robotics processing. 

There’s also a possibility that “instant mortgages” will become a thing. Consumers will be able to get their mortgage approved in days, rather than weeks. This has become known as an “Uber experience.” 

It’s safe to say that AI is changing the mortgage game. 

Customer retention 

Customer retention is a significant interest for mortgage providers. The potential to support customers, even post mortgage, is highly appealing – which is something that technology can help with. 

Even just be able to communicate with your clients and customers more effectively can help to improve customer retention. To improve communication, consider translating or localizing your website. There are now many tools and services like PickWriters that allow organizations to delegate translation and localization projects without hiring in-house teams.  

Interest rates issues

Technology can also be used to predict which customers are more likely to be affected when interest rates increase. 

You can use technology to understand a customer’s true situation and identify vulnerable customers. Once identified, you can train your staff to be able to properly deal with these vulnerable customers. 

ID verification 

As you know, a customer has to provide ID documentation to the estate agent, lender, intermediary, and the conveyancer. 

Imagine if there is an ID hub for all verifications? This would allow every stage of the process to access the ID quickly and straightforwardly. 

Perhaps blockchain technology can introduce this kind of ID hub. 

Helping with data 

The main reason that the process of securing a mortgage has been so complicated is down to the vast amount of data involved. 

Technology can bring fragmented systems together – from credit files, all the way to appraisals and contracts. 

Mortgage originators can’t access loan-related information, like comparables and financial history, from anywhere. This makes it easier for everybody involved. 

All in all, this has completely shortened the mortgage process. 

Conclusion

Just like with every type of industry, technology has completely revolutionized the mortgage market. 

For both the lenders and those applying, the process no proves to be much shorter and less stressful. 

As technology and AI develops, the mortgage industry will undoubtedly reap the benefits – allowing for faster, more accurate, and more personalized services.

How to Dispute an Error on Your Credit Report

0
dispute credit report

To dispute credit report errors, send a letter to the credit bureau that generated the report with the inaccuracy and explain what the error is. The bureau generally has up to 35 days to investigate and respond.

“We can’t approve you for the auto loan,” the bank teller told me. “There’s a collection on your credit report from New Mexico Teachers Credit Union.”

“What?!?” I blurted out. “I’ve never even been to New Mexico. That has to be a mistake.”

The Embarrassment of Wrongful Credit Denials

I wanted to hide.  This was the lobby of one of those grocery store credit unions near the grocery checkout line — with zero privacy. As shoppers walked by, I imagined them judging me, thinking, “tsk, tsk. Look at that dumb girl who doesn’t pay her bills.”

It was August 2005, I was 27 years old, and had lived in Anchorage, Alaska for less than two months. I was somewhat recovered from the Alaska Bar exam and could finally turn my attention to life’s odds and ends, like getting some used wheels. A coworker’s brother was selling his ten-year-old truck, so he and I went to the local credit union so I could get a small auto loan.

I had some student loans, but I had a job and no credit problems. At least no credit problems of my own. As it turned out, I had someone else’s stuff on my credit report.

Meet the Fair Credit Reporting Act

That was the first time I’d ever had to think about the Fair Credit Reporting Act (“FCRA”), a federal law that protects us consumers in these embarrassing situations. The FCRA has been around for over 40 years and applies to credit reporting agencies (often called “credit bureaus”) such as Equifax, Experian, Trans Union, and creditors whose stuff shows up on credit reports, known as “furnishers” in FCRA world. The credit reporting companies manage gigantic databases containing the credit files of millions of American consumers. When account data comes in from a creditor aka furnisher, the credit reporting agency computers matches those accounts to consumers’ credit files. That’s how accounts show up on your credit report.

My coworker’s brother and I spent the next couple of hours pacing the bank lobby while the bank teller made phone calls to try to get me approved for the loan. As luck would have it, there was someone with a social security number only two digits off from mine who had defaulted on a loan at New Mexico Teachers Credit Union. The banks talked to each other and confirmed the collection account was definitely not mine. I got the truck loan and opened a checking account. A few weeks later I got a form letter from New Mexico Teachers Credit Union confirming that I had never had an account with them. The bogus account disappeared from my credit report. I moved on with life.

Credit Report Errors: Furnisher Errors and Mixed Credit Files

The FCRA requires credit reporting agencies to have reasonable procedures to ensure the maximum possible accuracy of our credit files. Your name, social security number, and geographical location are all factors used to match accounts to consumers. In my situation, I was told that someone had transposed two digits on someone else’s social security number when filling out a form to send information about the defaulted account to the credit reporting agencies, so it was my social security number on the form. And thus, the account that wasn’t mine slipped into my credit file like a party crasher, and was helping itself to the appetizers.

Worse than that are the mixed files. Similar to the 2017 Oscars when Faye Dunaway and Warren Beatty got the wrong envelope and mistakenly announced La La Land instead of Moonlight as Best Picture, sometimes there’s a mix-up backstage. A credit reporting agency might erroneously mix the credit file of one consumer with a different consumer with a similar social security number and same or similar name. This can be devastating if you are the consumer with good credit, and you are mixed with a consumer with bad credit. Many people do not know that they are mixed until they go to buy a car or apply for a mortgage. What’s worse, many people cannot fix a mixed file on the spot the way my problem got fixed on the spot. They are wrongfully turned down for credit faster than they can dispute the false information.

FCRA Dispute and Reinvestigation

Don’t be like I was back in the day. Before you apply for credit, get your credit reports at www.annualcreditreport.com, the best place to get them. The moment you see something on your credit report that is not yours, you need to dispute it. The best way to do this is in writing, via certified mail — not through a credit repair company. Do it yourself instead, and save your mail receipts and copies of your dispute letter. The Federal Trade Commission has clear instructions and a sample dispute letter at its website.

The credit reporting agency has 30 days to conduct a reinvestigation of your dispute. The credit reporting agency should in most situations contact creditors/furnishers who are reporting accounts falsely as belonging to you and must delete anything it can’t verify.

Fortunately, if a consumer is harmed financially or even emotionally by a credit denial based on false credit reporting, s/he can bring a lawsuit to recover for that harm. This is definitely not something that you should do on your own – the FCRA is complex.

If you need help with a mixed credit file or other false stuff on your credit report, talk to a consumer protection lawyer. You can find one in your local area by visiting the National Association of Consumer Advocates website.

What is Payroll Processing?

0
payroll processing

Staying on top of payroll can be a time-consuming and stressful process. Especially if you take care of your payroll in-house, it can quickly become a nightmare for business owners. 

When you think of payroll you might associate with issuing paychecks. Indeed this is a very important part of the payroll but payroll is also about filing and withholding taxes and handing paycheck deductions like benefits and garnishments.

Employees of any organization are one of the most valuable assets when it comes to growing a business and making profits. The main ones who interact with all the clients, executing daily tasks and can help to bring new business. All the employees of the organization work really hard for the company’s business, it is very important for them to be rewarded for all their time and efforts towards the organization. Payroll isn’t something about making cheques and to keep a record of your employees getting paid on time. In fact, it is way more than that. When you get into the process of handling the payroll, you will understand it is really a difficult and complicated task, not as easy as it seems. 

One of the biggest reasons many organizations “more known as a small business” chooses to outsource their payroll to a third party. The third-party handles your payroll by giving you the freedom to focus on your business.

Payroll Process

  1. New Hire Procedures
  2. Wage Payments
  3. Payroll Taxes 
  4. Record Keeping 
  5. Proper Classification of Employees 
  6. Software for your Business
  7. Create a Budget

1. New Hire Procedures

When you are hiring a new employee, you are always required to perform a new hiring report with the designated state agency after they’ve been hired. That agency will go ahead and verify if your employees are legally allowed to work in the country and hand over to them the required tax forms to complete the details, Such as a W-4 for federal income tax withholding. If you don’t have this form you won’t be able to withhold the taxes of your employees. 

2. Wage Payments

It is very important to understand the federal and state minimum wage laws – as it is one of the most important things about payroll. Some of the states do have a higher minimum wage than the federal law requires. In such cases, the higher rates will apply. The minimum wage laws also apply to tipped and exempt workers – which is very important to know. 

Additionally, some of the states do require paid rest breaks and have the laws that require paying employees by a certain time. 

3. Payroll Taxes

Employment takes are broken up into two categories: Employer and employee liabilities. You will be responsible as an employer for withholding and paying federal, state and local employment taxes along with your own portion. You should report your taxes to the respective agency. Civil and criminal penalties may apply over you if you fail to comply with the tax regulations. 

Payroll is very complicated and detail orientated – seems very easy but no it’s not. And this is a reason most small businesses find it more cost-efficient to outsource their payroll services to a third-party provider. 

4. Record Keeping

The main requirement of the Fair Labor Standards Act (FLSA) is to maintain certain records for both exempt and nonexempt employees. The FLSA also maintains the records. The required documents include employment contracts, time cards, and records that show the deductions from and additions to wages. You need to be in touch with your state in order to see if they have the record-keeping requirements as well. 

4. Proper Classification of Employees

The Fair Labor Standards Act (FLSA) sets federal requirements for exempt employees; they are excluded from the act’s overtime pay provisions. Employees who are not excluded are labeled as nonexempt, and they qualify for overtime pay if they work more than 40 hours per week. By classifying exempt and nonexempt employees, you might accidentally cause a misclassified employee not to receive the overtime pay he/ she might be entitled to.

In simple words salary-based employees are exempt and hourly based employees are nonexempt. 

It is important to understand the differences between an employee and an independent contractor. Accordingly to the IRS, an independent contractor is a self-employed person. An employee is always paid through payroll and an independent contractor is not.  

Classifying employee as an independent contractor can cause some issues for he/she to receive certain benefits that they might be entitled to such as overtime, family/medical leaves, and unemployment insurance. 

Software for your Business

When you are about to choose your software for your organization, go for the option that is hosted over the cloud. This will help you make it easier to access all of the information regarding your payroll in one place altogether. When and where you need it. 

While finding the payroll software, you should invest in a management program that can make it easier and stress-free payroll for you. 

For example: enable employees to integrate their payroll software into the system, which can boosts collaboration and improve communication during the payroll process.

Create a Budget

While planning your payroll be sure to budget your wages and taxes. As employees are required to pay Social Security and Medicare taxes from time to time. And some are required to pay unemployment taxes. Make sure to always plan ahead of all such expenses. 

Importance of Payroll

In short payroll processing is one of the extremely important parts of a business for legal and financial reasons. Your employees are one of the most important assets whenever it comes to grow or expand your business. 

  • According to Investopedia, payroll is “The sum total of all compensation that a business must pay to its employees for a set period of time or on a given date,” which includes salaries, wages, deductions, bonuses, and net pay.
  • In many cases, payroll is handled by the accounts department of a business/organization
  • Small-business owners may also choose for payroll to be managed directly in-house or by an associate.
  • Payroll marks up the largest deductible for a business, the expense it takes to compensate each employee’s salary or wage is remarkable.
  • Pay periods can also vary due to some situations like overtime or sick leaves.

You May Be Eligible for These Class Action Lawsuit Payouts

0
top class actions

Looking for ways to make money fast? Here are the top class action lawsuits that don’t require any proof of purchase (2019):

Survey Voices provides a directory of open court settlements and rebates people might be eligible to take.  Since there are billions of dollars that still remain unclaimed, they help users submit claims for those rewards they are entitled to. They also provide the most current information regarding paid open focus groups, as well as useful information for their visitors to be well educated on the process of the highest paid market research opportunities. To sign up, simply enter your email here. Remember it’s 100% free.

No Proof Required Top Class Actions

  • California Gang Curfew Injunction– If you were serving with one or more gang injunctions that are listed in the lawsuit on or before February 20, 2013, you may receive a potential award of up to $62 with no proof of purchase. Deadline to file claim: August 14, 2020. 
  •  Trojan Horse Retirement Plan Class Action Lawsuit – If you signed up for a 401(k) plan with Trojan Horse from Jan. 1, 2011 through Sept. 20, 2016 and fear that you and your loved ones may be taken advantage of, you are eligible for a potential award from the Trojan Horse Retirement Plan Class Action Lawsuit. There is no deadline to file a claim form. 
  • Bank of America Uber Overdraft Fee Class Action Lawsuit ($20 per overdraft fee) – For those who have paid an overdraft fee from Bank of America between January 1, 2012 through December 31, 2016 that were not classified as one-time charge, you may be entitled to compensation from the Bank of America Uber Overdraft Fee Class Action Lawsuit! There is no deadline.
  • Blue Shield of California Mental Health Coverage Class Action Lawsuit – If you sought insurance coverage for residential or intensive outpatient treatment of psychiatric or substance use disorders and were denied on the basis that they were not medically necessary based on policies between January 1, 2012 and March 5, 2017, you are eligible for a potential award from the Blue Shield of California Mental Health Coverage Class Action Lawsuit. There is no deadline to film a claim. 
  • Ticketmaster Ticket Voucher Redemption Class Action Lawsuit – If you purchased tickets from TicketMaster between October 21st, 1999 and February 27th, 2013, then you are eligible for a potential reimbursement from the Ticketmaster Ticket Voucher Redemption Class Action Lawsuit! Ticketmaster failed to fully disclose to consumers all aspects of its UPS and order processing fees. The deadline to file a claim is June 2020. 
  • Tesla Enhanced Autopilot Feature Class Action Lawsuit – If you purchased Enhanced Autopilot with a purchase or lease of a Tesla Hardware 2 Model S or Model X vehicle delivered on or before September 30, 2017, then you are eligible for a potential award from the Tesla Enhanced Autopilot Feature Class Action Lawsuit! The autopilot feature in the high end electric vehicles is dangerously defective. There is no deadline to file a claim form. 
  • Petco Employee Background Check Class Action Lawsuit – If Petco procured a consumer report on you between May 1, 2014 through Dec. 31, 2015, then you are eligible for a potential award from the Petco Employee Background Check Class Action Lawsuit! The company violated the Fair Credit Reporting Act by procuring consumer reports for employment purposes without the proper disclosure and without obtaining proper authorization. There is no deadline to file a claim form. 
  • Campus Debt TCPA Class Action Lawsuit –  Individuals who received a phone call to their cell phone from Education Financial Solutions LLC d/b/a Campus Debt Solutions advertising loan consolidation or loan forgiveness on or after Oct. 16, 2013. There is no deadline. 
  • RoundPoint Mortgage Lender Placed Insurance Class Action Lawsuit – For individuals who were charged by RoundPoint Mortgage Servicing Corporation under an LPI Policy for Residential Property between Nov. 1, 2012 and Oct. 12, 2018 and either paid the net premium for that policy or still owe the net premium for that policy, then you are eligible for a potential award from the RoundPoint Mortgage Lender Placed Insurance Class Action Lawsuit! The deadline to file a claim is May 13, 2019. 
  • Ross ‘Compare At’ Pricing Class Action Lawsuit –  For individuals who purchased one or more items from Ross with a price tag that included a “compare at” price from a Ross store since June 20, 2011, who have not received a refund or credit for all purchases, then you are eligible for a potential award from the Ross ‘Compare At’ Pricing Class Action Lawsuit! The deadline to file a claim is May 31, 2019! 
  • Qualcomm Mobile Phone Class Action Lawsuit – consumers who purchased a cell phone since Feb. 11, 2011, may be affected by a Qualcomm Mobile Phone Class Action Lawsuit. A settlement has not yet been reached, meaning there is no cash available at the moment. However, This lawsuit is being called “quite likely the biggest class action in history,” and may affect up to 250 million people. There is no claim form yet, so make sure you look out for when it becomes available.
  • Washington State Farm Personal Injury Denial Class Action Lawsuit – If you are a Washington residents and were insured by State Farm and made a Personal Injury Protection (PIP) claim that was denied, limited, or terminated between April 9, 2008 and June 15, 2018, you may benefit from the Washington State Farm Personal Injury Denial Class Action Lawsuit. If you think you are eligible for this class action lawsuit, be sure to file a claim by June 10, 2019.
  • ServiceSource Employees Unpaid Wages Class Action Lawsuit – If you are someone who were workers by ServiceSource in Nashville, Tenn. between Sept. 21, 2009 and Oct. 17, 2018, you may be eligible for this reward! According to the lawsuit, representatives were purportedly denied extra time pay in spite of working more than 40 hours per week and being classified non-excluded. These representatives were supposedly delegated hourly specialists and they were apparently qualified for significantly more pay for a considerable length of time worked more than 40 hours every week.
  • Carolina First Bank Job Applicant Bias Class Action Lawsuit – If you or class members were employed at the time of their job application, they can recover a flat payment of $2,500. You may be eligible for a potential reward of $1,000 for each month of unemployment with a maximum payment of $25,000!
  • Ocwen Mortgage Home Warranty Class Action Lawsuit – If you or class members were enrolled in a Cross Country warranty/home service plan between Aug. 6, 2009 and Dec. 31, 2013 after depositing one of the checks; made one or more payments on the plan; never made a claim under the plan; and never received a refund for the premiums they paid. You may be eligible for a potential reward!
  • Fidelity Unpaid Wages Class Action Lawsuit – If you are a current or former employee of Fidelity Investments then you are eligible for a potential award from the Fidelity Unpaid Wages Class Action Lawsuit.
  • Nationwide Mutual Insurance Robocalls Class Action Lawsuit – If you are a class action member who received telemarketing calls regarding Nationwide home or auto insurance without providing prior express consent to receive the calls between Sept. 27, 2012 through Oct. 15, 2018.
  • Utz, Bachman ‘All Natural’ Snacks Class Action Lawsuit – If you are a class action member who purchased eligible Utz or Bachman branded products between Dec. 30, 2010 and March 30, 2019, you are eligible for a potential reward from the Utz, Bachman ‘All Natural’ Snacks Class Action Lawsuit. The deadline to make a claim is July 28, 2019. 
  • C.R. England Truck Driver Class Action Lawsuit – For truck drivers who entered into a vehicle lease agreement with Opportunity Leasing Inc., also known as Horizon Truck Sales and Leasing, and an independent contractor operator agreement with C.R. England Inc. between May 27, 2007 and Jan. 31, 2017. If you were one of these truck drivers, you may be eligible for potential reward thanks to the C.R. England Truck Driver Class Action Lawsuit! The deadline to make a claim is June 4, 2019.

Check all the Open Class Action Lawsuit Settlements for 2019

Below is our full list of open lawsuits in which you may be eligible to submit a claim. Browse through the list and see if you purchased the product or service and if you’re eligible to submit a claim. If you are eligible, submit your claim!

You are eligible for a cash payment as a compensation whenever a company decided to settle a class action lawsuit. However, you must file a claim form in order to get your compensation payment.

How to File Claim for Open Class Action Lawsuits 2019

Step One: Find Products You Purchased

Take a look at our list to find open settlements for products you may have purchased. Find out what the estimated payout will be and if proof of purchase is needed. Figure out if it’s worth your time to follow through.

Most no receipts needed can be a few minutes of your time.

Step Two: Fill Out the Claim Form

Click through to the settlement claim form and fill out online. Simply provide the necessary info such as your name and address, products information you purchased, and then submit your claim.

Step Three: Get your Check in the Mail

They will mail your check once to the address you provided once your claim has been approved.  Most claims checks are mailed 1-2 months after the claims period closes.

 

Do NOT follow this link or you will be banned from the site!