Positive pay is a powerful automated anti-fraud tool that protects businesses and banks from unauthorized checks being paid. Banks use it to quickly analyze and match checks against a file submitted by the business to confirm the account number, check number, and check amount. If the check presented for payment matches the file exactly, it’s…
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What Is a Registered Agent? How & Why to Get One
A business’ registered agent (RA) is the official contact for receiving important documents—a summons, subpoena, or registration renewal. While every state requires a business to have a registered agent, regulations may differ. Several states allow the business to be its own RA, but others don’t. If you’d like to hire a company to serve as…
Factor Rate: What It Is & How to Calculate
Factor rates are used for alternative forms of financing, commonly associated with short-term loans or merchant cash advances. It differs from traditional interest rates, where instead of being expressed as a percentage, a factor rate is expressed as a decimal and represents the total cost of repayment. Essentially, a factor rate represents the total cost…
Electrician Insurance: Cost & Coverage
Electrician insurance is a policy, or combination of policies, that protects your business from financial loss from claims of third-party property damage, workplace injuries, damaged business property, or loss of business income. Some license boards require electrical liability insurance like general liability insurance, while most states will require workers’ comp if your business has employees….
What Is IFRS in Accounting? Application & Financial Statements
The International Financial Reporting Standards (IFRS) is a set of accounting standards designed in London, UK, by the International Accounting Standards Board or IASB. US companies don’t need to use IFRS because they follow US GAAP. However, if a US business operates in countries that use IFRS, then it must comply with the local accounting…
What Is Code 766 on an IRS Transcript?
When transcript code (TC) 766 appears on an IRS transcript, it generally means a refundable credit has been applied to a taxpayer’s account. Refundable credits can generate refunds even when no tax is owed on the return. Sometimes, the transcript description for code 766 will say “tax relief credit”—and since tax relief is government assistance…
What Does Code 150 Mean on an IRS Transcript?
Code 150 on an IRS transcript means that the IRS has accepted your return for processing and has created a current-year file for you. Transcript code (TC) 150 may be shown with a dollar amount, representing the tax liability assessed. The tax assessment does not automatically mean you will owe the IRS money, as credits…
Exempt vs Nonexempt Employee: Classifying Your Workers
Exempt and nonexempt employees are worker classifications established by the Fair Labor Standards Act (FLSA) that determine whether these employees must receive overtime pay. Exempt employee: An employee who, based on job duties and salary, is “exempt” from receiving overtime pay. Nonexempt employee: An employee who, based on job duties and salary, will receive overtime…