FTE stands for full-time equivalent (not full-time employee) and translates the total hours worked by part-time employees into the number of equivalent full-time employees. Tracking FTE is a typical way employers monitor employees’ workloads so future budgeting and staffing can be properly planned for. To calculate FTE you have to know how many full-time and…
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What Is Spot Factoring?
Spot factoring, also known as single-invoice factoring, is when a business sells an individual customer invoice to a lender to receive advance funding. The factoring relationship typically ends as soon as the debtor pays the invoice. It’s best for businesses that prefer flexibility because their invoices or factoring needs are less predictable. How Spot Factoring…
Who an Account Debtor Is
An invoice factoring transaction typically consists of three parties. They are the factoring company, the seller of the invoice, and the debtor who’s responsible for paying the holder of the invoice. For a small business, the account debtor is the customer who owes the invoice. How an Account Debtor Can Impact Factoring The creditworthiness of…
What Is Advance Factoring
With advance factoring, a factoring company pays a business a percentage of future receivables in advance, typically between 75% to 90%. The arrangement between the seller and the factoring company is kept confidential. Hence, the responsibility of collecting on the receivables remains with the small business. This option is rarer than traditional invoice factoring and…
What Is Contract Factoring?
Contract factoring is the solution small businesses use for long-term factoring agreements. A small business may contract to factor invoices for a particular project or from a particular customer for an extended period in exchange for paying a lower fee. This ensures the business can receive financing and reduces the research costs for a lender….
2020 Payroll Tax Rates [+ State Tax Map]
Federal payroll tax rates like income tax, Social Security (6.2% each for both employer and employee), and Medicare (1.45% each) are set by the IRS. However, each state specifies its own rates for income, unemployment, and other taxes. Below is a state-by-state map showing tax rates, including supplemental taxes and workers’ compensation. All of QuickBooks…
21 Payroll Terms Every Employer Should Know
When you’re new to payroll, the lingo can sometimes leave you confused. It’s important to invest some time into learning the most commonly used payroll terminology, so you don’t make any weird (and potentially costly) mistakes such as assuming we know what minimum wage is exactly and how it’s defined. The top 21 payroll terms…
The Ultimate Guide to Sales Forecasting + Free Template
Sales forecasting involves estimating future sales or revenue. It’s done by examining past sales performance while considering upcoming campaigns, initiatives, or marketplace trends. You can forecast sales by multiplying the value of your sales pipeline by the probability of closing those deals, or by multiplying your historical periodic performance by your current growth. Using a…
Experience Modification Rate & How to Lower Workers’ Comp Costs
An experience modification rate (EMR) is a multiplier insurance companies use to help set workers’ compensation premiums. Your business’s rate is determined by looking at your workers’ comp claims history and potential for future injuries. Businesses with lower EMRs pay less for their workers’ compensation insurance. EMRs commonly range between 0.75 and 1.25. How the…
California Paid Sick Leave Law
Without a doubt, COVID-19 has impacted every state and how most employers respond to and support employees’ needs in relation to virus-induced illness. The State of California’s Department of Industrial Relations keeps its website updated on all the latest changes to laws that impact employers and employees alike relating to COVID-19. The state resource offers…
4 Types of Multifamily Financing: Rates, Terms & Qualifications
Real estate investors use multifamily financing to purchase or refinance both smaller multiunit properties with two-to-four units and large apartment buildings with five or more units. Multifamily loans are great for both first-time investors and seasoned professionals. Rates are generally between 4.5% to 12% with terms up to 35 years. If you’re looking for a…
Workers’ Comp Claims: What Are Employers’ Responsibilities?
Business owners often assume that buying insurance is the extent of their workers’ compensation obligations, but that’s just the beginning of what they must do. In workers’ comp claims, employers’ responsibilities include several state-mandated actions they must perform. Many of these steps, however, have the added benefit of protecting their businesses. Employer Responsibilities Before a…