# Using Silver Dollars – Part 3

By Bob Shapiro

Using Liberty Eagle Silver Dollars in everyday commerce carries several advantages. In Part 1, I detailed an Exchange mechanism, as well as a way to store the Silver Dollars for later use. In Part 2 of this series, we began to see the advantages as they related to a business’ sales and taxable profits.

Today, I’d like to show how employees may be paid in a mix of Paper and Silver Dollars in a way that benefits both the employee and the employer. (The pay needs to be a mix of Paper and Plastic because of the Minimum Wage. Most states have a higher Minimum than the federal rate of \$7.50 per hour – in my home state of MA, the rate is \$9.00.)

Here’s how it would work. Suppose you had an employee working 40 hours at \$25 an hour, or \$1000 for the week. As an existing employee, he may be offered perhaps a 5% premium – an incentive add-on encouraging him to participate, bringing his weekly all-paper pay to \$1050. (You may or may not choose to offer an incentive to new employees.)

You would tell my company (let’s call it Cambi Money Services) the person’s name, etc, that the hours worked was 40, the incentive rate, and the pay amount. Cambi would calculate how much that comes to after tax, and that amount would be the target purchasing power. Cambi then would use the hours and the state Minimum Wage to calculate the total Paper plus Silver Dollars (eg. 40 x \$9 = \$360), and the after tax amount.

Using the two after tax amounts, and the Exchange mechanism, we would tell you to use your regular payroll provider, with \$360 as the amount, and a Direct Deposit amount to Cambi (in Paper) which would go into a Silver account with us.

Cambi would bill you for the Paper Dollars needed to change the Direct Deposit amount into Silver. Cambi would act as both a Payroll Advisory and as a Depository. Let’s look at an example for a married worker with 4 exemptions and an Exchange Rate of 20:1.

Nominal Pay         \$1000

Incentive                 5%

Pre-Tax Total       \$1050

After-Tax Target  \$858.48

Hours                       40

State Minimum     \$9.00

Pre-Tax Total         \$360

After-Tax Amount \$325.66

Paper Difference   \$532.82

Direct Deposit       \$ 28.04

Silver Deposited    \$ 28.0432

Exchange Rate          20:1

P.P. Of Silver         \$560.86

Paper Pay Amount\$297.62

Employer Billed

P.P. Make Up         \$532.82

Exchange Fee-2% \$ 10.66 (on amount exchanged)

Payroll Fee-0.5%  \$ 5.25 (on pre-tax total)

Total Bill                 \$548.73

Employer Cost

Employee Pay        \$360.00

Cambi Bill               \$548.73

FICA Match            \$ 27.54

Total Cost                \$936.27

Previous Pay         \$1000

FICA Match           \$   76.50

Total                        \$1076.50

Amount Saved      \$ 140.23

Percent Saved          13.0%

The fee charged by Cambi to you is for the advice on the payroll amount (\$360) and on the Direct Deposit amount, and for the Account handling, so that the Dollar amount of the Direct Deposit is made as a Silver Dollar deposit. Cambi’s charge is not pay for the employee, but just a fee for services rendered to you.

So, how much profit value can an employer add to the bottom line by using the Payroll Services? Let’s assume a \$10 Million sales business in MA, with \$1 Million gross profit and \$1 Million payroll averaging as in the example above.

The profit becomes around \$600,000 after tax. The 13% you saved comes to about \$130,000, or a profit bump over 21½%. How much growth can your business achieve with this much more in bottom line profit? How many more jobs can you create?