What Does It Mean to “Pay Yourself” and Fixed Money?

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As more and more countries begin to roll out Child Care Stabilization Grants, many providers are wondering what it means to use some of this money to “pay for themselves.”

Funds for these initiatives are required to provide funding to caregivers (and facilities) to cover the business related to COVID-10 and to support the sustainability of their operations. To see if your country is beginning to accept employment, check out my article, “New on Child Care.”

This money represents a huge financial benefit to all providers! This is not a debt, it is an amount you should not repay.

According to government directives, the money can be used in a variety of ways:

  • Staff costs
  • Rent, mortgage payments, essentials, insurance
  • Land management is a bit of a change
  • COVID tools and equipment
  • Some goods and services are required to care for or resume child care
  • Mental health helps a helper, children and staff

Your country will also provide additional information on how the grant money can be used.

The only money on the list is “staff costs.” What does this mean?

Basically it means you can give yourself the money yourself. Instead of spending it on other things, you can take the money and spend it on whatever you want. You can set it aside for retirement, pay off debts, go on vacation, do housekeeping, buy business tools, and more!

Sometimes countries use language that says you can use the money to “save yourself.” This is a strange concept for many child caregivers (such as the term “staff costs”). Many donors would say, “I have no employees, so what does it mean to” pay for yourself “? If you are a company, then you are being paid as an employee and it is easy to feel that the company is” paying you “. Business owners from parents, a support program or a Food Program are all yours to do with what you want.

For charitable purposes, you can use this money to save for yourself, as other ways of earning money. There are three ways in which you can do this.

First: If you have more than one bank account, save money from the bank account where the Stabilization Grant was held, to another bank account. It can be a monitoring or storage account, it doesn’t matter. It could be a business or personal account, it doesn’t matter. Sign in to your bank account or a separate slip of paper saying “My own payment”.

Second: Write your own check. Put “Strengthen Grant Self-Paying” in the memo line.

Third: Keep the money in the bank account where it was first deposited. Write a note in your register or on a piece of paper, and record the date on which the money was saved and identify it as “Paying Myself”.

It’s as simple as that. You will not be required to submit any records to your government on how you spend your money. Your country may or may not limit the amount of money you can use to “pay for yourself.” If you need further information, ask your government if you need to keep certain payment records. If you are under government surveillance, any of the above will protect you.

Lastly, once you have paid for it, you don’t have to spend money. You can save it as an emergency wallet or deposit it in a bank account for other future needs.

I know that for some providers this idea of ​​“paying for yourself” sounds too good to be true. It is very rare to be told that you can earn money and keep it for yourself. But you can! The idea of ​​partnering with Strong Organizations is to help you stay in business to continue to provide quality care. Therefore, take advantage of it and use it when it is available in your area.

Tom Copeland – www.tomcopelandblog.com


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Categories: Record Keeping, Record Keeping & Taxes

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