Ruby Money | Taxes don't need to be taxing.

FAQ

What is Ruby Money?

Ruby Money is a mobile app that makes taxes and retirement easy for independent professionals. Our automated withholding feature allows you link your bank account and set aside taxes and retirement every time you get paid by a client. We are just getting started and have lots of new features in development.

Who is Ruby Money built for?

Ruby Money is built for independent professionals looking to put their business finances on cruise control while maximizing their wealth. Our product is designed to work best for creative professionals and knowledge workers that make over $75,000 a year such as designers, marketers, business consultants, coaches, and engineers.

Who is behind Ruby Money?

We are Angie Moody and Evelyn Huang - seasoned fintech executives who have also been in your shoes as independent professionals. We are proud to work with prominent investors Clocktower Technology Ventures and Leadout Capital.

Is Ruby Money a bank?

Ruby Money is not a bank, and we want you to continue working with your bank of choice. Every time you get paid by a client into your bank account, we set aside money into an FDIC-insured account with our bank partner, Blue Ridge Bank N.A., for safekeeping. You can transfer money back to your primary bank account whenever you need - to pay for taxes, to make a contribution to your retirement account, or another purpose.

I already have an accountant. Why should I still use Ruby Money?

We love accountants and recommend all our members to find a great one. Ruby Money does not provide legal, financial or tax advice. We are a platform that helps you plan for and set aside money for taxes and retirement throughout the entire year. When it's time to pay your quarterly taxes, or when your financial advisor invests for you, your money will be there.

I already have a bank and/or retirement account. What makes Ruby Money different?

Ruby Money is not a bank or a brokerage. We are designed to work with the bank and brokerage of your choice. Every time you get paid by a client we set aside money into an FDIC-insured account with our bank partner, Blue Ridge Bank N.A., for safekeeping. You can transfer money back to your primary bank account whenever you need - to pay for taxes, to make a contribution to your retirement account, or another purpose.

Where does my money go when I use Ruby Money?

We work with our bank partner, Blue Ridge Bank N.A., to put the money into a personal FDIC-insured deposit account. Every time you get paid by a client, we transfer tax and retirement funds from your linked primary bank account into your Ruby Money tax and retirement accounts. You can transfer money back to your primary bank account whenever you need through the Ruby Money app.

How can I withdraw money from Ruby Money?

You can transfer money back to your primary bank account whenever you need through the Ruby Money app. In the Home tab, select “Transfer,” and your funds will be available in your primary bank account within 5 business days.

How much does Ruby Money cost?

Ruby Money is currently a free app for our Beta customers. If you're a customer, you will be notified 30 days before we start charging any fees. You will have the option to remove all your funds and close your account at any time.

Is Ruby Money FDIC insured, and are my funds secure?

Yes! Your money is insured up to $250,000 through our bank partner, Blue Ridge Bank N.A., Member FDIC.

How do you protect my data?

Protecting your information and privacy are top priority. Most importantly, your money is FDIC-insured through Blue Ridge Bank N.A., Member FDIC. We also have multiple layers of security on our Ruby Money app to ensure the safety and integrity of your data.

You can also help keep things secure. Make sure you choose a complex password that only you will know. If you notice a transaction you do not recognize, notify us immediately at hello@rubymoney.us. We can temporarily freeze your account to ensure against fraud.

If you’re interested in more details, take a look at our Ruby Money Privacy Policy.

What is Plaid?

Plaid provides the technology that enables you to link your financial accounts to Ruby Money. In our Ruby Money app, Plaid will ask for your direction and to securely share your data with the Ruby Money to help you monitor and budget your finances in the app. Plaid is trusted by over 4500 companies including most major banks, Venmo, and Stripe. You can read more about How Plaid Works.

What should I do if I don’t recognize a transaction in my Ruby Money account?

Notify us immediately at hello@rubymoney.us. We want to make sure your accounts are secure, and we can take action to temporarily freeze your account to ensure against fraud.

Do I need a business bank account to use Ruby Money?

We always recommend that you have a separate bank account for your freelance work, be it full-time or as a side hustle. Not only does this help Ruby Money correctly identify your client payments and set aside the right amount for taxes and retirement, it also makes calculating your income and expenses easier come tax time. However, this bank account does not need to be a business or commercial account held under a business name; it can be a personal account you only use for business purposes.

Why do you need to link to my business bank account?

Ruby Money automatically sets aside the right amount for taxes and retirement each time you’re paid by a client. You link your business bank account so we can set aside this money for you, saving you time and mental math!

What if I don't estimate annual income and expenses accurately?

We use your estimated business income, W2 income, and business expenses to determine how much you should set aside for taxes based on federal and local tax rates. Of course, these are estimates and not exactly the numbers you’ll hit. At any point during the year if you think your annual estimates are far off the mark, you can adjust your Tax Profile under Account by clicking on your user icon in the top right corner of the Ruby Money app.

Why do I set my tax and retirement withholding rules as percentages?

Your freelance income likely varies by week, month, and client. We’ve found that the best way to make sure you set aside the right amount for taxes and meet your retirement contribution goals is to set aside a percent of every client payment vs. a dollar amount. A percentage rule fluctuates with you and allows you to contribute a lot when you're flush and just a little when you’re tight. For any of you who follow Profit First or other percentage-based budgeting methods, Ruby Money is built specifically for your needs.

How do you determine how much I need to withhold in taxes?

Ruby Money has a smart algorithm that calculates your taxes based on your freelance (1099) income, W2 income (if applicable), location, and filing status. We cover your federal, state, and self-employment taxes (Social Security and Medicare) - these make up the majority of the tax payments you owe each year. We do not include taxes from other income reported on your tax returns, nor other business taxes such as local tax and sales tax.

How do you determine how much I can set aside for retirement?

If you are a sole proprietor or a single member LLC, you can contribute a maximum of 20% up to $58,000 (in 2021) of the net profit from your business. Remember these are pre-tax dollars, so the more you set aside, the more you’ll save on taxes. We recommend setting aside as much as you can!

What should I do if Ruby Money is setting aside money from non-income deposits?

Currently, we send you a notification each time we see a deposit hitting your business bank account, confirming the deposit and the amounts you want to set aside for taxes and retirement. You can simply respond “SKIP” and we will not set aside funds from that deposit.

If money has already been set aside from a deposit, you can always transfer the amount back to your linked bank account by clicking on the Home tab in the Ruby Money app and selecting “Transfer.” We’re always happy to help too - feel free to reach out to hello@rubymoney.us.

If you notice a transaction you do not recognize, please notify us immediately at hello@rubymoney.us.

How do I share this with my accountant and financial advisor?

We are building a way for you to share with your accountant and financial advisor! In the meantime, please do share your tax withholding rate and retirement contribution rates with your financial team.

Why was I denied?

If you see a message saying we’re unable to complete your setup, it means we are having problems verifying your identity. If we can remedy this - often by having you re-enter personal information or providing us with additional documents - we will reach out to you directly with next steps. We and our bank partner take security very seriously and follow Know Your Customer (KYC) regulations.

What types of tax payments can be made?

You can pay your federal and state quarterly estimated taxes through Ruby Money.

When is my tax payment due?

The next deadline to pay quarterly taxes is June 15, 2022. Submit your payment in Ruby Money by June 10, 2022, and your payment will make the deadline.

What funds can I use to pay my taxes?

You must pay your taxes using the funds available in your Ruby Money Tax account. You can always see the total funds available on your home dashboard under “Taxes.”

Do I have to pay the full balance due on my taxes?

You can choose what amount to pay at any time, be it a full payment or partial payment.

What should I do if I paid the wrong amount?

If you paid an amount greater than your balance due, generally the overpaid amount will be refunded to you. You can contact the IRS directly at 1-800-829-1040 for questions about your federal taxes, and look for your state's Department of Revenue contact info. If you paid less than you intended, you can always submit a second payment through Ruby Money up until the June 10, 2022 deadline.

Is there a fee for this service?

This is an exclusive feature offered to Ruby Money customers for free.

Will I see proof that my payment was processed?

You will see confirmation that your payment through Ruby Money has been processed, and you will see the funds deducted from your account on June 10, 2022. For federal payments, you’ll also be receiving a notice in the mail directly from the IRS with steps on tracking your payment in their system. Finally, Ruby Money will text you once your payment has officially been accepted.

How are payments posted to my IRS and state account?

The government will match the payment to your account based on the Social Security Number, name, date of birth, and zip code. Make sure you review and confirm the information in the Ruby Money tax payment matches the information listed on your tax return.

Do I need to send anything else to the government once my payment is complete?

If you’re paying quarterly estimated taxes, you don’t need to send anything else - you’re done!

Can I cancel a payment once it is completed?

No, you cannot cancel a payment once it has been completed. If you notice a payment you do not recognize, please notify us immediately at hello@rubymoney.us.

Taxes don't need to be taxing.

Ruby Money makes it easy for solopreneurs to pay taxes, set aside money, and find ways to save.

Evelyn Huang

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