A nonprofit organization operates with the primary purpose of serving the needs of a social or public cause. Profits earned by the organization are typically invested back into the organization, rather than being distributed to shareholders. Examples of nonprofit organizations include hospitals, religious organizations, charities, universities, homeless shelters, soup kitchens, and more. Nonprofit organizations carry…
What is
What Is a Microloan? A Beginner’s Guide
A microloan is a small loan that’s made to a business owner, usually carrying qualification requirements that are more flexible than most traditional loan programs. As a result, it can be a good option for businesses that have bad credit or weak finances. Microloans often have short repayment terms of no more than five to…
Restaurant Tip Pooling: Ultimate Guide (+ Free Template)
Before implementing tip pooling in your restaurant, it’s important to completely understand what’s involved. Learn more about the practice, including applicable laws.
Tip pooling is when a portion or all of the tip money collected in a day is redistributed among tip-eligible employees, either evenly or by a set percentage. This practice can increase morale and is a great option for some restaurants. However, it’s important to implement correctly, as there are laws—like those forbidding management participation—that…
What Is Employee Retention?
Employee retention is how well a company keeps its employees over time. You can measure your employee retention by dividing how many employees you have in your company at the end of a period by how many employees you had at the start. Effective employee retention initiatives are critical to successful employee management by improving…
What Is Human Resource Outsourcing (HRO)? Types & When to Consider
Outsourcing HR tasks and functions can take the burden off small business owners and businesses with very small HR departments. A third-party provider can handle anything from recruiting to payroll to employee benefits administration.
Human Resource Outsourcing (HRO): Definition and Types Human resource outsourcing (HRO) is the act of hiring a third-party provider to handle your human resources administrative tasks and functions. These can include HR administration, benefits management, payroll processing, recruitment, and more. Some common types of outsourcing that fall under the main umbrella of HRO include: Professional…
What Is Plumbing Insurance? Cost & Coverage Explained
Plumbing insurance coverage is an important part of a successful plumbing company and consists of general liability and equipment coverage. Depending on the size of the business, plumbing insurance will include workers’ compensation and commercial auto, too. Plumbing insurance costs between $45 and $100 a month for general liability. Plumbers will pay a lot less…
What Is Self-employment Tax: Rates & Calculations
Self-employment tax consists of Social Security (12.4%) and Medicare (2.9%), for a total of 15.3%. It is assessed on income earned and must be paid even if you don’t receive a 1099-MISC for your services. If you’re a sole proprietor, freelancer, general partner, or independent contractor making $400 or more in self-employment income then you’ll…
What Is the Federal Funds Rate?
The federal funds rate is the rate that’s charged when a bank lends funds to another bank. This can occur if a bank needs money to satisfy reserve requirements set by federal regulations. While the federal funds rate describes the rate banks charge one another, it plays a large role in US monetary policy and…