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Relationship Between Gold and the U.S. Dollar: An Overview

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In addition to its important role as a commodity, gold is certainly one of the oldest tradings means that the human race knows. As a matter of fact, gold has a double purpose; it can serve as a commodity as well as a currency. As a commodity, gold has amazing properties; it is dense, soft, lustrous, malleable, brilliant, and ductile. As a currency, gold is all-pervasive around the world. On that premise, the following article presents an overview of the history of gold and takes a deep dive into its relationship with the U.S. dollar.

The history of gold and its symbolism

First discovered in river bottoms in its natural state between 5,000 and 3,000 BCE, gold has been coveted by civilizations throughout history. Even in this day and age, gold still remains a proxy of prosperity and wealth and the ultimate symbol of human achievement. In the course of history, gold, which is a rare metal, was used by a substantial number of governments as a safe-haven asset to back their currencies in case things go awry on the economic front. In fact, while a lot of governments still maintain a lot of gold, none of them uses it in order to back their money in this day and age. That being said, the U.S. dollar is considered to be the standard for pricing this rare yellow metal. For that reason, there is a unique relationship between the currency value of the United States and the price of gold. 

The U.S. Dollar vs Gold

As gold is considered to be an asset, it has an inherent value. This value, however, can fluctuate over the course of time and, in some cases, in a volatile way. For the most part, when the U.S. dollar value increases in comparison to other currencies, the price of the yellow metal tends to decrease in terms of the U.S. dollar. The reason behind this being that the price of gold becomes higher in other countries, which means there will be fewer buyers, which means less demand. On the other hand, as the U.S. dollar value decreases, there will be more demand for gold so it appreciates. That said, the U.S. dollar value is not the sole facet that affects the value of gold; interest rates also affect it. If the U.S. central bank increases interest rates, interest rates across the economy will increase. This will attract more capital and investors from all over the world to invest in the U.S. and, consequently, buy the U.S. dollar. 

Gold trading

In addition to being one of the world’s most precious metals that has an imperative role in the economy and that appreciates ahead of its industrial usage, gold is one of the most widely traded metal commodities. In fact, there are several reasons to engage in gold trading. As gold preserves its purchasing power and performs great at the expense of other assets, it can serve as a hedge against inflation and turbulent times in the world’s economy. Gold trading can also be popular among investors who want to diversify their portfolios. 

A durable, consistent, divisible and valuable currency, gold still remains one of the world’s most storied currencies that serves as a barometer with regard to the safety and security of governments and their economy. 

Minimum Wages in Illinois

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All employers are asked to pay their staff a minimum wage. It is defined as the least rate of working per hour by the employees. If somehow, a worker isn’t able to earn up to the minimum pay, he/she should clear the due amount to the respective entity. Different regions have locked state, local, or federal rules for the minimum wages, including Illinois. The fundamental cause behind fixing this lowest amount is such that a company/office can pay the right amount to its employees on time.

Let’s read the article below to know more about Illinois and its minimum set wages for employees.

Figure Out Illinois’s Minimum Wage in 2020

The general minimum wage rate for the federal department in Illinois was set to be 7.25 dollars per hour. Keeping this in mind, non-tipped workers above 18 years are getting a handsome wage rate of 10 dollars per hour by 1st July 2020. However, students and teenagers working to earn for themselves earn the least rate of 8 dollars/hour. According to a law in Illinois, if these under-eighteens serve their employers for almost 650 hours a year, they should be granted the same salary rate as workers above eighteen are getting. It was quite an impartial decision made by the respective government.

A Little History About Increasing the Minimum Wage Rate in Illinois

The House and Senate of Illinois passed a law in 2019, stating an increase in the wage rate to $15/hour by 2025. Later on, the government outlawed this statement after thoroughly evaluating workers and their performances in past years. It was not a good experience as the workers used to serve fewer hours and earn more up to $13/hour in 2016. Thus, the decision was reconsidered, and the minimum wage in Illinois now stands at the rate of $11 per hour.

Illinois Lawful Protection for Tipped Workers

An employee should clearly understand the rules and regulations behind getting tips on providing services. What should be the tipped amount paid by the employer? Should you contribute to handling the compensation or due payments of your working place? All these general questions are answered according to the laws of your respective state. Similar is the case with Illinois! The government has fixed some rules of paying the tipped amount to the employees working in Illinois. They are generally paid almost sixty percent of the actual minimum wage per hour. Let’s discuss in detail the key tips and legal protection provided by the Illinois government and federal state to the tipped workers.

The primary rule for getting tips is that it all belongs to the particular worker and not to the employer. Still, there are some exceptions found where a worker can share his tipped amount with other parties, such as:

Rules for Tip Credit: A few states give their employers a right to count their staff tips as wage pledges. It does not mean the employer is getting a portion of his employee’s tips, but he’s instantly paying that percentage to the respective person. It is called tip credit, and Illinois usually follows this step under basic tips rules.

Rules Regarding Tip Pool: According to a law in some states of Illinois, workers getting tipped should share a portion of that amount with other staff in the tip pool. This way, all employees can enjoy a part of the extra salary.

Illinois Dealing with Overtime Minimum Wage

An employee’s overtime salary considers being 1.5 percent of its actual minimum earning per hour. Hence, as per the current wage rate in Illinois, the overtime amount turns out to be 16.5 dollars/hour. Now, who is eligible to get this overtime amount? All those workers who spent their forty hours a week on work are authorized to receive this 1.5 times extra amount.

Exemptions of Employees to Get Overtime Wage Salary

As everyone struggles to earn more and more, the government of Illinois specified some workers who can acquire this facility. At the same time, they also exempted a few who are ineligible for this overtime minimum wage. A necessary list of these exceptions include:

  • Some technical workers, such as engineers, software professionals, etc., get almost 27.63 dollars/hour.
  • Some administrative by Fair Labor Standards Act
  • Workers who serve in television or radio in an area with less than 100,000 people
  • All the workers of state agencies or municipalities
  • A few agricultural employees
  • Employees who are commissioned by the Fair Labor Standards Act
  • The staff of a few educational institutes who are facilitated by their own unit

Should Illinois Work on Increasing the Current Minimum Wage Rate?

The state should respect increasing its hourly rate with time, bearing in mind its current minimum wage rate. Almost 13 states offer a minimum salary of 10 dollars per hour or maybe higher than this. It counts to be approximately equal to Illinois’s minimum wage rate. If this region plans to raise its hourly income for its employees, it can significantly influence the overall economy, lessen the income’s injustice, and create tax returns.

3 Customer Service Essentials in the post-pandemic Economy

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Thousands of articles have already been written about the way the pandemic has changed the behavior and expectations of customers. Over the past year, many consumers have been forced to change their habits, use different suppliers and switch to new channels.  As a result of this varied exposure, they’ve more than likely had the opportunity to compare your business with others they’re in contact with.

What does this mean, for example, for a small retailer? First, it means they’re no longer comparing your service with that of your competitor down the street. They could be comparing your service delivery to that of Amazon or any other huge company with vast resources at their disposal that has impressed them over the past year.

So how can you compete and retain your customer base? How can you ensure that you compare favorably to the big online players or the best in your niche?

Here are 3 Key Strategies

Your brand promise

Create a brand promise that’s not about you, it’s about what you promise to do for your customer.  So it’s not: ‘We promise to be transparent’, it’s ‘We promise that you’ll know exactly the progress of your order at all times’. Your customers will understand how well you measure up to this in reality.

Get your delivery process right

Isolated at home, customers who order online have come to expect their purchases to appear on their doorstep almost instantly. Again, while the big players have led the way, smaller businesses are increasingly finding ways to compete. With the increase in online purchasing, many businesses have found themselves, almost by accident, with a far more geographically diverse customer base.

Whether you fulfill your orders in-house or outsource, choosing a reliable courier service is essential. As a senior manager at Texas Couriers explained “Each package we deliver to customers in our area is an opportunity to build our reputation locally. That’s why we commit to delivering in hours, rather than days.” Partnering with a local service ensures you both have a stake in outstanding service delivery and exceeding customer expectations.

Give your brand a human face

Whether your team encounters customers face-to-face, or electronically, choosing the right people to represent your brand and solve problems is an essential aspect of your service delivery.  

For example, there are two trends in online support. Large organizations are using AI tools to deal with customer enquiries and provide support. However, how often have you been wowed by a robotic response? More likely you’ve been left frustrated and angry. That’s why many smaller companies can grab a competitive advantage by taking the opposite route. Pop-ups on your website promising that customers can talk to a ‘real person’ offer a human element that no bot can replicate.

Make sure you have the right people in all “customer contact “ roles- they should be empathetic problem-solvers.  Move the ones who aren’t focused on engaging with customers and to other jobs, and reward your customer service superstars appropriately – they remain  the key to your company’s continued growth success.

3 Things You Must Know About Capital Gains Tax

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Learning about tax laws is essential for you to have an idea about capital gains. As such, there are various ways to determine your capital gains tax. It may vary depending on the items that you’re selling and your profit.

Capital gains tax may not be a problem if you fall under the lowest income-tax bracket. It’s because people who fall under this bracket are seen as not capable of acquiring taxable assets. Conversely, you can still have assets without worrying about the tax. This is because the tax is zero percent capital gains. However, that’s not the case if you’re under a higher-income tax bracket. You may notice that you pay more capital gains as your income increases. Regardless, the capital gains may vary depending on which state you’re residing in.

To understand capital gains tax, you should know the following:

1. Capital Gains Definition and Types

Capital gain is defined as the increase in your asset’s value once you sell it. However, you only get the profit once you sell it for the value you put it up. For instance, when your house’s value increased to 30% over the past years, 30% is your capital gain. Again, you can only get this 30% once the asset is sold. On the contrary, it becomes a capital loss when the value decreases when you sell it.

When you buy an item, the amount you paid for becomes your capital gain. This is what the IRS uses to identify the adjusted basis for your tax. On the other hand, some assets were given to you as a gift by friends or relatives. In such a case, you can determine the capital gain based on its value during the time you received it.

Capital gains tax can be long-term and short-term. You can identify if your item is under short-term capital gains if you acquired it in less than a year. Your asset can fall under taxable-regular income. However, if your asset is already more than a year or so, it’s considered as a long-term capital gain. Therefore, tax can be 0-20% and it may vary depending on the taxable income.

Whether the capital gain is short-term or long-term, it becomes significant when paying the tax. For instance, you pay a lesser tax rate if it’s under long-term capital gain.

2. Capital Gains Tax on A Business

Business profits are different from capital gains tax. Capital gains tax focuses on the tax from the income you got when selling your business assets. However, business profits can be your occupation or anything that helps you earn. Nonetheless, you have to report it separately as business profits fall under separate tax law. This is why it’s a must to know the difference between capital gains and business profits.

To identify if it’s a capital gain or a business profit, you can discover more here. When you bought a space for your business, you spent time reconstructing it. All the remodeling had helped to increase the value of the property. 

However, you may need to relocate because you find that the business isn’t thriving in such a location. When you sold the business property it’ll become your capital gain. 

3. Reducing Capital Gains Taxes

Worry no more if you think you’re paying too much capital gains taxes. There are techniques that you can use if you’re planning to decrease the capital gain tax. Here are some of them:

  • Timing Capital Losses with Capital Gains: If you’ve multiple properties or investments, you can check which among these has a capital loss. With this, you can reduce the tax that you have to pay for the capital gains taxes.

For instance, you earned from your investment a total of $90. On the other hand, your other investment cost you less than $50 for the loss. Therefore, your net capital gain is $40. You can gain this by deducting your capital loss from your capital gains.

  • Waiting Longer Than One Year Before Selling: As stated above, you can lower the capital gain tax by waiting for at least more than a year before selling your item. You will pay 0% if the marginal rate is between 10-15%. On the other hand, you would have to pay a 15% tax if the marginal rate ranges from 25-38%. Lastly, you may be charged with 20% if the marginal rates shoot up to 39.6% or more.

For instance, if you’re under the 28% tax bracket, your tax may vary depending on your item if it’s long-term or short-term. If the capital gain is $6,000, the short-term gain tax is $1,680. On the other hand, the amount decreases if it’s under the long-term gain tax. 

  • Sell When Your Income Is Low: As discussed earlier, your capital gain tax rate may vary depending on which marginal tax you’re under. Thus, if you’re under a higher-income tax, then the capital gain is higher. In this situation, wait for the time when your income is low before you sell a property. In effect, your capital gain tax may decrease as well.

There are different reasons for the reduction of one’s income. Regardless, selling your property or assets in these times may save you from paying higher capital gain tax.

Conclusion

There are many reasons why you should learn the different tax policies. First, it saves you from any violations you may incur if you’re not familiar with the tax law. Second, you can navigate your way into decreasing the tax that you have to pay. 

Besides, learning different methods to decrease your taxes isn’t cheating. You’re just simply being practical to save more money. Lastly, you can use it as a basis for the price when selling an item or assets. If you’re aware of how much tax you have to pay, you can consider it. Thus, it allows you to have ideas about how much money will be left from your profit once you deduct the tax.

What is the Minimum Wage in Louisiana

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The minimum wage is the least wage that every employer needs to pay to the employee for their per-hour services. The wage in Louisiana is $7.25 per hour and has been more or less the same for the last few years.

The average hourly wage in Louisiana indicates that if you are an employee in this state, the salary per hour that you should at least accept is the $7.25 declared by the federal government. So if your employer is paying you anything less than the minimum wage, he is breaking the federal government’s fair labour standard act.

Do you know the living wage in Louisiana?

It is $14.06 per person. So what does this indicate? It basically tells you how much you require to acquire the basic necessities of life, including food, shelter, and other things for a satisfactory living standard.

By setting up the minimum hourly wage rate to $7.25, the federal government does not assure Louisiana’s people’s basic quality of life.

Do you know what state has the lowest minimum wage?

It’s Louisiana.

The economic crises in the state account for the lowest wage rate in the state for years.

You might be wondering why the wage in Louisiana is very low compared to other states of the USA and when this will change. Well, I have good news for you. With the change in the central government and the power in the hands of Joe Biden, Louisiana’s fate is going to change. Want to know how? He has proposed to increase the average hourly wage in Louisiana from $7.25 to $15.

So you might already know what does that mean?

This increase means you have more money than the expenses you have been earning while living in Louisiana. Better living standard, exposure to luxuries, savings, investments, future security are just a few of the many benefits that will be opening for You, the people of Louisiana, after the proposal by Joe Biden.

If you are a business owner, you better prepare for any minimum wage rate change in the future. Hire an accountant and a financial expert, and he will guide you on how to prepare for the increased wage rate in Louisiana in the upcoming years.

If you can involve technology in business, you are good to go. Technology is a one-time investment that will certainly save you time and money in the future. Adopting technology today will lead you to save money and time in the future. If the fair labour standard act changes in the future, having computerized work will not affect you.

Louisiana minimum wage increase will surely change the living standard of the state. If you are one of Louisiana employees, you for sure know what this change will mean. With the argument presented by the state’s authority that the minimum wage in Louisiana is not the living wage, you can expect the change sooner.

You might be thinking of how the business can afford the increase in the wage rate. Well, you are right. They can’t. So the federal government is not only required to increase the wage rate, but it also needs to provide fundings to businesses to make them capable of expenses.

Louisiana is far behind the world. The living wage in Louisiana is high in comparison to the minimum wage rate. The minimum wage rate will surely increase in the future, and for that, you, the citizens of Louisiana, should get ready to start living a quality life.

How is the UK Economy Expected to Perform in 2021?

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While the pandemic has shown that it is impossible to predict what the near future looks like, many experts are now making their economic predictions for 2021 with the roadmap to normality outlined and the easing of restrictions starting. So, what might the economic recovery look like this year?

Unemployment on the Rise

Redundancies were rising at the fastest rate on record towards the end of 2020 even with the furlough scheme, so when this closes at the end of April (after several extensions) it is expected that unemployment will surge as businesses are unable to afford to keep staff on their books. It is predicted that unemployment will peak at about 7.5% in the middle of 2021 (this equates to around 2.6 million people).

Interest Rates Remain Low

Interest rates will also remain low after the Bank of England made two emergency cuts in March of last year down to just 0.1%, the lowest on record. Emergency cuts are usually a temporary measure (such as after the referendum), but it is unlikely that they will rise anytime soon with the economy not scheduled to fully reopen until June. However, some believe that the BOE may have to raise interest rates in order to combat rising inflation.

Growth Expected to Increase Fastest Since 1948

While 2021 should be a historical year for economic growth, it will not feel like it due to the fact that the UK has performed the worst amongst all European economies. The BOE forecasts growth of 7.25%, but even with this growth, it is not thought that the economy will return to pre-pandemic levels until the end of 2022. As explained by Hellenic Shipping News, “While the numbers on both the way down and up will be larger, the end result will be the same”.

Predicted to Be the Last Economy to Recover

This also means that many predict that the UK will be the last major economy to recover from the pandemic. One way for businesses to gauge the economic recovery this year could be to monitor the Forex market to see how the pound is performing. Of course, the impact of Brexit cannot be ignored and somewhat muddies the water when it comes to the health of the economy and what the contributing factors are.

It is hard to predict what the rest of 2020 will look like and, while there are signs of optimism, the fact that it is such a deep hole that the economy is in means that there is a lot of climbing to be done to recover.

What is the Minimum wage in Tennessee?

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The minimum wage is the lowest amount of money paid by an employer to their employees. It is the legal requirement, and laborers get paid minimum wage or more than this. The minimum wage legislation was passed in the 20th century and is now a legal requirement in many countries.

In America, the national minimum wage was created in 1938 and is still effective. The current federal required minimum wage is $7.25 per hour of work. But in the United States, different states are allowed to set minimum wage according to their standards.

The states are divided as follows based on their minimum wage regulation:

  • The states with higher minimum wage than federal’s required minimum wage
  • States that have the same statutes of explicitly of the minimum wage as the federal government
  • States without any minimum wage standard or statute, these states automatically have the
    same minimum wage statute as federal
  • Those states that have a lower minimum wage than the federal government’s statute, but it is
    only applicable for specific jobs

Tennessee is one of those states that does not have any minimum wage statute and has the same minimum wage as the federal one. The minimum wage of Tennessee is $7.25/hr. It applies to all the employees except students, employees that get tipped, and employees working exempt occupations.

There is no particular law for minimum wage in Tennessee, but a promised wage law exists. It states that employers should pay the promised wages to the employees. This law ensures the employees get paid, and the payment is not under $7.25/hr.

Even though there are no plans to implement a state law for minimum wage in Tennessee, some talks are going around. Since January of 2020, the act called the Tennessee Minimum wage act is under discussion. If this act gets approved, the minimum wage of Tennessee will raise to $15/hr.

Although many people would wish that this act passes, there is a long way to happen. If the federal minimum wage goes higher than the minimum wage in states like Tennessee will also rise. As good as it will be for the employees, the business owner might need to make some changes.

A business that must pay Minimum wage

According to the Fair labor standards act, a business with two or more employees and have an annual sale of $500,000 should pay minimum wage. It can be any form of business or labor if the enterprise fulfills the condition the minimum wage statute applies.

The business under this law is individuals or enterprises that the Department of Labor defines as interstate commerce. The legal requirement of paying minimum wage applies to all the business. But some jobs are exempt from getting paid minimum wage.

Exemptions

Minimum wage is a legal requirement, but certain employees get exempted from getting it. Employees like executives, people in administrations, and professionals that work as outside salespersons are exemptions. It is because these employees can bargain their wages and have higher salary requirements.

Some exemptions are also present, in which case the employees get paid more than minimum wage.

These exemptions include students working part-time and employees that get tipped. Sometimes people with disabilities and tipped employees may get a lesser amount of money than minimum wages.

In case The Tennessee minimum wage act passes, there are some things you need to look out for as a business owner. Other than the exemptions mentioned above, you will need to reevaluate your staff and notice which employees get paid weekly or monthly.

Another thing you need to do is to hire the best employees that give maximum output worth the wage.

Small businesses try to recruit employees with good potential. It would help if you had a good team and perfect management to ensure that your business prospers in any case.

Many families live under the poverty line in Tennessee, as the average wage is just a little more than the minimum wage. The average wage is about $14.84 per adult, which is the living wage. If the labor wage or minimum wage increases, the poverty line people will get a huge benefit.

Tennessee’s minimum wage is the same as the federal government’s, but there will be a significant rise if the act passes. The change is not supposed to happen incrementally, but at once, that will help families struggling.

What is the Minimum Wage in Indiana?

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The United States either set up its own state minimum wage or go with the Federal minimum wage law. Indiana is one of the states that go with the Federal minimum wage. The Federal minimum wage has been adopted by Indiana which happens to be $7.25 per hour. These wages are planned at the state level considering the customer price index.

Indiana Minimum Wage Law

Employers follow the Indiana Minimum wage law while paying their employees. It is advised to pay the wage per house. In the case of overtime, the pay rate is 1.5 times the normal wage. Indiana Minimum Wage Law also commands employers to prepare a statement that has the record of the working hours, pay rate, overtime, and deductions.

Indiana Minimum Wage Poster

The Indiana Minimum wage poster is important for the Federal labor law as it has devised working hours for the laborers. The Fair Labour Standards Act calls for this wage poster so that the employees are aware of the overtime regulations and wages. As Indiana’s income comes from agricultural, farming, and mining industries, it is important for the employees to know the regulations devised for overtime and labor forces.

Indiana has been ranked 35th nationwide when economic growth was evaluated for the states. Circumstances are changing in Indiana if we consider economic grounds. The wage was increased by $0.6 in 2008. Since then there has been no rise in the wage.

The average minimum wage in Indiana is $7.25 per hour. Although there are some exceptions when we are considering the minimum wage per hour. These exceptions vary with the nature of the employees.

  • Tipped employees have a $2.13 minimum wage. $5.12 tip is granted to the tipped employees to make a total of 7.25 per hour.
  •  College or school students get 85% of Indiana’s minimum wage per hour if they are part of a work program.
  • If an employee is new he or she receives $4.25 an hour for the first 90 days. It is usually known as the training wage.

These wage policies make a balance in society.

Bill Passed by the Indiana General Assembly

Indiana General Assembly has passed a bill for raising the wage per hour. It is proposed that the wage may be increased to $10 per hour with effect from 30 June 2021. This raise has been planned statewide. It may rise to $13 by 2022 and to 15 by 2023. President Joe Biden is trying his best for this legislation to be approved. But the demand is still on hold. Although things are expected in the favor of Indiana as 20 states have expected a rise in their wages per hour.

Changing Dynamics in Indiana

 Since Bill has been passed for expecting a rise in the wages, the businessmen in Indiana may have to strategize considering the dynamics in the field of finance. This calls for certain objectives which must be adopted by the people of Indiana. These objectives may include

  • Better Hiring strategies must be made by the businessmen. As the wages per hour may change this year, intelligent businessmen should lay out the policies and strategies for the number of employees they have to hire this year.
  • Setting objectives and consultation can result in better business growth
  • It is advised to consult business liaisons or Local chambers of commerce to have an idea of the changing dynamics in Indiana. These consultations can help in knowing the changing wages policies in Indiana.
  • Employee turnover can be expensive as the income policy is going to change with time. It is therefore advised to set a standard strategy to avoid employee turnover.
  • The changing economic dynamics call for the updated technology.
  • It is also advised to automate payroll.
  • Employers must get an EIN (employer identification number) issued in Indiana.
  • Employers should consult their lawyers about the changes in the bill passed in the Indiana Assembly

Factors affecting the Changes in Wages in Indiana

Customer price index

It accounts for the price of an average weighted basket of market goods used for household purposes. As the prices vary in the market, the strategists have to advise the government to enhance the wages. Due to the pandemic, the Customer price index has increased.

Poverty threshold

Figures have shown that 11.9% of the population in Indiana has lived below the poverty lines. The poverty threshold is below the annual budget in Knox (a city in Indiana). Hence the government and the policymakers devise the wages keeping in mind the poverty threshold.

Labour Force survey

Data is gathered on Indiana’s official labor force and the wages are recommended accordingly. Employment rate and inflation also determine the minimum wage per hour in Indiana.

Gross regional Domestic product GDPR

It is the measure of the size of a region’s economy. It gives us an idea about the economy and needs of the people of Indiana. Policies are devised considering the GDPR of Indiana.

How has Brexit Impacted the UK Economy?

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The historic deal on the UK’s future trading and security relationship with the European Union was finally agreed on Christmas Eve 2020. And while the UK has been preparing for Brexit since the result of the referendum in 2016, no one could quite have predicted the impact.  

Europe has been Britain’s largest trading partner for centuries, and already we’ve seen disruptions at European borders, as well as supply chains in disarray as a result of the new tariffs. In the wake of the referendum, we saw the pound plummet against the euro. Eventually, the currency pairings levelled, but will this happen again now a deal has been struck? 

It’s fair to say that when the referendum was announced, no one could have foreseen a global pandemic that would bring economies around the globe to their knees – leaving the UK to fight a battle on both fronts. So, not only is the UK economy showing the negative economic impact of leaving Europe’s single market and customs union, but it’s also facing its highest levels of unemployment since the referendum. The jobless rate rose to 5% – meaning with more people out of work, there are fewer people spending, which is having a negative impact on the economy too. 

And while it’s too early to tell what the real long-term impact of Coivd-19 will be on the UK economy, economists in both Europe and the US both agree that the UK economy is likely to be at least several percentage points smaller in 2030 than it would otherwise have been, if the UK had remained within the European Union.  

In the short-term, the deal removes the uncertainty that was prevailing. As a result, UK firms can now create financial forecasts and create growth plans based on the final outcome of the deal – which they were unable to do before. In the long-run, it’s expected that the UK will be richer than it would have been under a ‘hard Brexit’ – but still substantially poorer than if it hadn’t left the EU at all.  

But what does this mean for businesses? The main implication for leaving the EU means leaving the customs union. While the UK did secure a trade deal allowing UK businesses to continue tariff-free trade with its EU neighbours, the rules are a little different – and not as straightforward as before.  

And those who hoped Brexit would unshackle them from the EU bureaucracy and ‘red tape’, may find that leaving the bloc has actually left them with more paperwork than before.  

For businesses to truly understand the economic impact of Brexit, it’s important for them to understand the forex market. Using a UK forex broker will help businesses understand more about the UK economy and the impact the GBP is having on other currency pairings.  

Minimum Wage in Virginia

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Most companies and corporations are confined to meet some federal requirements as per the law in Virginia. There is currently no defined overall minimum wage rate in Virginia, but organizations including more than four workers befit this policy.

The current minimum wage in Virginia is fixed at $7.25/hour, which is according to the federal wage plan. The government is working to change this policy and raising it to $9.50/hour from 1st May 2021.

Furthermore, it can extend to $11/hour from 2022 and might be an extra dollar on top of 11 from 2023.

New Wage Law in Virginia

The three well-known state organizations, involving the Virginia Employment Commission, are required to arrange a public survey. This survey not only fulfills the general wage requirements but also imposes the state’s minimum wage plan. All the agencies should contact Virginia’s general assembly and apply till 1st December 2023

Abolished Exemptions from the New Law about Minimum Wage in Virginia

There were previously some exceptions for the minimum wages in Virginia, which has now been eliminated by the new law. Now the entrepreneurs are compelled to pay the right amount to their employees.

Below is the list of workers who can instantly receive the minimum wages per hour for their hard work.

  • Employees who work hard all day to receive the money for their completed tasks.
  • Workers who are working in private sectors or domestic units as caretakers or nannies.
  • Employees who are serving in a company, having fewer than four workers.
  • People who couldn’t make up the right amount due to physical inability, mental retardation, or similar other deficiencies.
  • As per the federal law in Virginia, business owners must pay $4.25/hour to trainers under 20. This cycle will extend to the initial ninety days of their work.
  • Furthermore, the law has set a settled amount for all the students working part-time to meet their needs. The government fixed 85% of the minimum Virginia wage rate for such students, which calculates to be $6.15/hour.

What is the Minimum Wage Policy for Tipped Workers in Virginia?

The Federal Fair Labor Standards Act (FLSA) did justice so every employee working in Virginia can get at least the minimum amount decided per hour.

According to the rule, employers can pay an amount lower than the minimum salary if the workers are earning enough money from daily tips received.

If it’s not working, the entrepreneurs have to pay the difference to fulfill their employee’s needs.

Describe the Overtime Minimum Wage Rate in Virginia?

Virginia has not specifically set any overtime law for the citizens. However, a worker can extend his working hours every week to get an extra amount for his essentials.

According to FLSA, any employee who is spending extra hours, counting to be 40 hours/week, is eligible to get a minimum of 1.5 times the usual wage.

A few states in Virginia allow their workers to serve the companies this way and earn the overtime rate. If your boss fails to pay you the right amount for your work, you can directly launch a complaint against him with the Virginia Department of Labor.

Are the Employees Fully Protected in Virginia?

The governor of Virginia is working like a Trojan to introduce an employee-friendly relationship between the employer and the workers. They are fully protected as the governor believes in facilitating the Virginians with complete safety and the best jobs. It not only helps them work smoothly but will also increase the economy of the country. Furthermore, it will help reduce the risk of wage theft, workers’ low ranking, or wrong agreements.

Would Law Help Increasing the Minimum Wage in Virginia?

We know that with this advancing world, the needs of people are also increasing. So extending the minimum wage per hour in Virginia would definitely help the employees. If the federal government improves the salary policy, it can directly affect almost 511,000 number of Virginians.

Not only this, but approximately half of this above population is indirectly influenced by the increase in the minimum wage rate. This act would be a great benefit for women as 57% of the employees are women, making their living this way. It would affect the overall economy of the country, which is ultimately a goal.