Third-party order fulfillment companies help retailers handle their orders for a set of monthly fees. The primary costs include fees for receiving inventory, storing it, packing orders, and shipping them out. Other costs can come from processing returns, restocking, initial setup, account management, inbound shipping, packaging, custom labeling, and special requests, like kitting. The total…
What is
Self-employment Tax: Rates & Calculations
If you’re a sole proprietor, freelancer, or independent contractor, then you’ll likely need to pay self-employment tax. Considered the equivalent of payroll taxes that W-2 employees pay, self-employment tax is due on income earned and must be paid regardless of whether you receive a 1099-MISC for your services. The self-employment tax rate includes both Social…
SBA Form 1919: What It Is & How To Complete It
Business owners who are applying for a Small Business Administration (SBA) 7(a) loan must fill out SBA Form 1919. This form gathers borrower information for the application process. It includes personal and business-identifying information and responses to questions ranging from citizenship status to the number of potential jobs created or retained through the loan. Filling…
What Is Online Banking? Definition, How It Works & Is It Safe?
Online banking is a system that allows you to manage your bank accounts using your computer or mobile device and the internet—which is why it’s also referred to as internet or web banking. Most traditional banks, or banks with brick-and-mortar branches, offer an online banking option to their clients. Generally, online banking covers typical banking…
HR Compliance: Examples, Laws & Best Practices [+ Free Checklist]
Human resources (HR) compliance is the process of ensuring your company adheres to all employment laws and regulations—from hiring and onboarding new employees to administering their benefits and ending the employment relationship. Small businesses are uniquely susceptible to compliance violations because they often lack the oversight necessary to notice and correct issues. To ensure you…
What Is Merchandising? Definition, Benefits & Cost
Merchandising includes all the non-verbal tactics retailers use for presenting and promoting their goods in-store. This includes your store layout, the products you choose to sell, how you arrange them, and even your pricing strategy. Retailers use merchandising in their stores to cultivate their brand image, improve customer experience, and drive sales. Merchandising can make…
Section 179 Deduction for Property, Equipment & Vehicles
For the 2023 tax year, Section 179 deduction allows business owners to deduct up to $1,160,000 ($1,220,000 for 2024) of the cost of qualifying new or used property, equipment, and vehicle purchases immediately. The advantage of the deduction is that you immediately receive the tax savings from an equipment purchase rather than gradually saving taxes…
Paid Sick Leave Laws by State
Although there are no federal laws requiring that employers provide paid sick leave, some individual states (as well as cities and counties) have created their own regulations. For instance, employees in Colorado accrue one hour of sick leave for every 30 hours worked (capped at 48 hours in a year), while workers in Washington, D.C.,…