Thursday, 3 November 2016

Rethinking your Assumptions in Changing Times

Many time there are changes going on around us:

  • Either it is that new piece of equipment that was brought in, which may make things easier or
  • It may be that the end of the financial year is coming up and those higher up are starting to look at all the pieces which have not been sold  or
  •  Elections  in the USA and locally are upcoming and there are so many changes which may arise.
Over all there may be a subtle change in the air...

One way that persons deal with all of these types of uncertainty is to keep their costs down... Many persons think that one of the best ways to keep their costs down means

  • Reducing the number of persons who are on the payroll or
  • Asking persons to take on contract work...
After all there are so many savings to persons who can work from home and so forth.

However sometimes in the middle of things persons get ill and just cannot come out to work and after you have convinced so many persons to work from home how do you manage during those periods?

And if you are looking at what may be your busy season for the next six months or so, when unfortunately it gets dark earlier and dawn seems to come later and there are statutory deadlines then

  • Increasing the number or persons on the payroll while asking them if they are willing to work less hours  per day may make a difference in the service which you provide...

Now I know that this strategy may not work for everyone and I have not worked through the maths at all of the levels, however  the following may be an option where persons may not want to work late or early and  there may be some who may prefer to have time away from work during the next six months:

The National Insurance Rates for persons who work for TT$600 per week or  for persons who work for 7.5 hours for 5 days at TT$16.00 is TT$23.30 per person, with the employer contributing TT$46.60 per person. Over a four week period for that one employee, the employer contributes close to TT$200.00.   See the attached link for the rates which apply to many of the salary bands.

Now I know that everyone may be asking, what can I do with TT$2,400 per month when the personal allowance to which I am entitled is TT$6,000...  However, if earning $2,400 per month means that there are three of us who will work each day, then I will be helping someone else earn an income and possibly receive a pension at the end of their work life.....

Also it means that I will be able to go home at the end of 7.5 hours for each of 5 days or after 6.25 hours for 6 days and get some me time while someone else is working and I would not lose any major skills or knowledge.

However in the interim:

  • I can enroll in a course through YTEPP or through one of the other institutions or
  • I can get a second job which may contribute some other income, skills and exposure  to  knowledge, people and places....
One of the important things in times like these is to acknowledge that:

  • Learning  will take place during these times,
  • When I elect to work with persons and in public places, I am contributing to the continuity of institutions such as the National Insurance Company which will provide for the future and which includes me,
  • I am attempting to secure my lifestyle through the work that I do and through the contributions which I make,
  • I will be tax compliant by asking for statutory deductions to be made from my pay. This will reduce the work which I am putting in to be compliant, leaving me with more time to earn an income.... Should the system of taxation change to one where 25% of the Income Tax is deducted from payments to contractors, then I may have to wait a full year to obtain my refund, which will not be in my interest in any form.
However I will try to keep two jobs which are:
  • Not of the same type, i.e. position or type of work
  • Nor in the same industry,
  • Nor with competitors
That way I am maintaining some type of integrity and earing a bit more income with a clear conscience.

copyright Jennifer N Bailey email:

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