ECCB Micro-Business Simulation Workshop Presentations

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Welcome to “Get to know your numbers”

Microbusiness Simulation Workshop – Anguilla: 20 – 21 February 2024

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Understanding Social Security for Small Businesses

Empowering Small Businesses through Social Security

INTRODUCTION

Welcome to the Anguilla Social Security Board’s Presentation!

 We are delighted to have you join us today to learn more about how Social Security can benefit your small business and your employees.  Today's Focus: Empowering Small Businesses through Social Security  Our focus is to empower you with knowledge and tools to gain an understanding of Social Security and maximize its benefits for your business.

What is Social Security?

Social Security is a compulsory insurance plan to which

employers, employees and self-employed persons

contribute.

Social Security is designed to protect insured persons from

financial distress by providing partial income replacement

when insurable circumstances occur.

Importance of Social Security

Why Social Security Matters for Small Businesses

 Social Security provides a safety net for both business owners and employees,

offering financial security in the event of certain short-term and long-term

incidences, including retirement, disability, or in case of your death.

 It ensures stability and peace of mind, allowing you and your employees to

focus on growing your business without worrying about financial

uncertainties.

 Social Security benefits provide essential support for retirees, disabled

individuals, surviving family members , offering financial stability during

challenging times.

Benefits of Paying Social Security

Access to Short-Term and Long-Term Benefits

By contributing to Social Security, both you and your employees gain access to certain short-term and long-term benefits, providing a source of income when certain contingencies occur, and during retirement years. These benefits are:

SHORT-TERM BENEFITS: Sickness Benefit Maternity Benefit

LONG-TERM BENEFITS: Disability Benefit

Grant



Allowance

 Pension Survivors Benefit



 Benefit Paternity Benefit Funeral Grant

Grant



 Pension Old Age Pension (Retirement)

Grant



Pension



Calculating Deductions

Understanding Contribution Rates

Social Security contributions are calculated based on predefined contribution rates, which may vary depending on factors such as income levels and employment status. Calculating Contributions for Employees and Employers  Contributions are split evenly between employers and employees, with each party responsible for half of the percentage of the total contribution based on earnings. The Contribution Rate for employers and employees has increased from 10% to 10.5% for 2024. Employers pay 5.25% and employees pay 5.25% of insurable earnings.

 The Contribution Rate for self-employed persons is 8%.

Examples and Scenarios for Deduction

Working example Jane Doe works for B. Smith Services Basic Salary - $5250.00 Social Security Deduction - 10.5% - $551.25  Employer Contribution – 5.25% - 275.62  Employee Contribution – 5.25% - 275.63

Procedures for Filing Contribution Returns

Register your MyGovernment account Register and activate your MyGovernment account, your gateway to the SSB portal. If you are currently registered with the Inland Revenue Department's online portal, skip this step. Request and activate your SSB Online account Complete the registration request and you will receive an email with your authorization code within 24 hours (excluding weekends). You can then activate your Social Security Online account with the supplied authorization code.

File your contributions You are ready to file your contributions. Under the contributions tab, choose file return in the active obligations section.

Record-Keeping Importance

Importance of Proper Record-Keeping

Proper record-keeping is crucial for Social Security compliance, ensuring

accuracy and transparency in financial reporting.

Documentation Required for Social Security Compliance include:

Payroll records



 Earning statements

 Employee information

Benefits for Self-Employed Individuals

Special Considerations for Self-Employed Professionals

Self-employed individuals have unique considerations when it comes to Social Security

contributions, including different contribution options and eligibility criteria.

Contribution Options for Sole Proprietors:

 We can explore contribution options available for sole proprietors, helping you

choose the most suitable approach for your business structure.

Maximizing Social Security Benefits as a Self-Employed Individual

 Strategies can be provided to help self-employed individuals maximize their Social

Security benefits, such as optimizing earnings and planning for retirement,

ensuring financial security both during their working years and in retirement.

Marketing Your Business with Social Security

Leverage your Social Security compliance to market your business by:

 Communicating Social Security Benefits to Employees

 Use effective communication strategies to convey the value of Social Security benefits to your employees, fostering loyalty and retention.

Attracting Top Talent with Comprehensive Benefit Packages:

 Offering comprehensive benefit packages, including Social Security benefits, can help you attract and retain top talent, enhancing the competitiveness of your business in the market.

Building Trust and Credibility with Social Security Compliance:

 Compliance with Social Security regulations not only ensures legal adherence but

demonstrates the business’s commitment to its employees’ financial security. It also builds trust and credibility with customers, investors, and other stakeholders, contributing to the long-term success of your business.

Understanding Market Dynamics

How Social Security Compliance Affects Market Perception

Compliance with Social Security regulations positively impacts market perception, demonstrating your commitment to responsible business practices and employee welfare.

Competitive Advantage of Providing Social Security Benefits

Offering Social Security benefits can give businesses a competitive edge in the market, attracting employees who value financial security and stability.

Adapting to changing Economic Conditions with Social Security

Social Security compliance can help businesses adapt to changing economic conditions and market dynamics, fostering resilience and sustainability in the face of uncertainty. It also provides a reliable framework for managing employee benefits and expenses.

Conclusion

I hope to have informed you adequately and that as small businesses you

now have a better understanding of Social Security, its importance to and

how it can benefit not only employers and employees, but also the self

employed and small businesses.

I appreciate your participation and engagement in today’s presentation.

Remember: Social Security is a Vital Component of Business Success

Social Security is not just a legal obligation but a vital component of

business success, ensuring the well-being and security of both you and

your employees.

Question and Answer Session

Open Floor for Questions and Discussion

We invite you to ask any questions or share your thoughts on

Social Security and its implications for your business.

THANK YOU!

Contact Information

facebook.com/ssbai1980

www.ssbai.com

Social Security Board P.O Box 243, The Valley, AI-2640, Anguilla BWI

FLOW (264) 497 2201/2 | DIGICEL (264) 462 2201 USA (718) 734 4562 | FAX (264) 497-5649

Understanding Financial Statements Presented by Zuleka Fraser, MBA, HCCP, RHDFP

FRAZHER is a full-service bookkeeping, accounting, and financial advisory service provider that assist businesses with full-charge accounting services, financial strategies, and innovative, efficient, and effective optimal business strategies for success.

Meet Our Presenter

Zuleka Fraser has worked in finance for over 17 years, with an experience in commercial banking, and has worked in banking, accounting, property management, and commercial real estate finance. Ms. Fraser has served in several leadership roles throughout her career, including Bond Lead for the state of Georgia Housing Finance Agency (Department of Community Affairs), Director of Underwriting for the City of Atlanta Housing Authority (Atlanta Housing), and as Vice President with a leading financial advisory consulting firm that utilizes her knowledge and skills to provide financial advisory services to local municipalities and government agencies across the United States of America. She also specializes in commercial real estate - affordable housing finance. Ms. Fraser is also the founder of the Anguillian Alumni – A nonprofit organization in Anguilla that aims to elevate others through membership, mentorship, and scholarship. Zuleka holds degrees in International Studies (Undergraduate) and Master's in Business Administration, MBA (Graduate), as well as professional certifications in Housing finance and development, including Housing Credit Certified Professional (HCCP) and Rental Housing Development Finance Professional (RHFP). She is also currently completing her studies to earn her ACCA.

Zuleka Fraser , MBA,HCCP,RHDFP Principal & Founder FRAZHER Consulting zuleka.f@frazher.com

The financial statements are a record of the financial activities of a business. Each having a specific purpose for financial reporting. THREE KEY FINANCIAL STATEMENTS

Balance Sheet/ Statement of Financial Position

Shows a snapshot of a company's assets, liabilities, and equity at a specific point in time (e.g. March 31st, 2023).

Income Statement/Statement of Operations, Profit and Loss Statement, P&L

Shows a company's revenue, expenses, and net income over a period of time (month, quarter, year).

shows the movement of cash in and out of a business over a specific period of time, typically monthly, quarterly, or annually. It is divided into three main sections: operating activities, investing activities, and financing activities.

Statement of Cash Flows/ Cash Flow Statement

THREE KEY FINANCIAL STATEMENTS

Financial Statements

BALANCE SHEET

PROFIT & LOSS STATEMENT

CASHFLOW STATEMENT

The Balance Sheet: Components of the Balance Sheet THREE KEY FINANCIAL STATEMENTS

Everything of value that the business owns, such as cash, inventory, equipment, and property. Including Current Assets E.g. Cash, inventory, & Non-Current Assets ( Property, plant & equipment). Assets = Liabilities + Equity

Assets

The debts and obligations the business owes, such as loans, accounts payable, and salaries.

Liabilities

The owner's share in the business. It represents the owner's investment in the business. Equity = Assets + Liability

Equity

The Balance Sheet: Characteristics of the Balance sheet THREE KEY FINANCIAL STATEMENTS

A balance sheet must always balance!

Total liabilities & equity

Total Assets

Current Liabilities Due within one year

Current Assets Used within one year

e.g. accounts payable

e.g. cash, inventory, accounts receivable

Non-current Liabilities Due in more than a year

Liabilities &Equity

Non-current Assets Lastmore than a year

e.g. long-term debt

Assets

Shareholders’ equity

e.g.property, plant and equipment, technology, patents, trademarks

e.g. common shares and retained earnings

All transactions are recorded in the balance sheet in two places. For every Debit there is a Credit!

The Income Statement: Key Components of The P & L Statement THREE KEY FINANCIAL STATEMENTS

The income statement, also be referred to as “the statement of operations”, “the profit and loss statement”, or simply the “P&L”, represents the business activities that have been transacted from thebeginningof thefiscalyeartoa particularperiod and through to the end of the fiscal year.

Revenues

Expenses

PROFIT

LOSS

Profit or loss

The Cash flow Statement: Components of the Cashflow Statement THREE KEY FINANCIAL STATEMENTS

Cash flows from OPERATING ACTIVITIES. This includes the cash inflows and outflows related to the core operations of the business . (e.g. revenues, operating expenses, Receipts from customers and payments to suppliers).

Operating

• The cash flow

statement provides a clear picture of how cash moves through a business. • It helps owners and stakeholders understand the sources and uses of cash. • It is a crucial tool for assessing a company's liquidity, solvency, and ability

Cash flows from FINANCING ACTIVITIES. This includes activities such as obtaining loans, repaying loans, issuing or repurchasing stocks, and paying dividends . (e.g. issuing shares, raising debt, Issuing shares, Paying dividends, Issuing bonds, Loan repayments).

Financing

Cash flows from INVESTING ACTIVITIES. It includes the purchase and sale of long-term assets such as property, equipment, or investments. (e.g. sale/purchase of assets, sale and purchase of property, plant and equipment buying and selling investments).

Investing

to meet its short term obligations.

Contact Us

Frazher Financial | Facebook

frazherinfo@gmail.com or Info@frazher.com

FRAZHER FINANCIAL _AXA (@frazher_financial)

264-584-4712

264-584-4712

www.Frazher.com

THANK YOU