Tipped minimum wage is the lowest amount that businesses, like restaurants and resorts, can pay their tipped employees. Currently, the federal tipped minimum wage is $2.13 per hour, but each state has its own regulation. The tipped minimum wages paid by the employer plus the tips received need to equal at least the full minimum…
What is
What Is the Bullwhip Effect? Causes, Examples & Impacts
The bullwhip effect occurs when small changes in customer demand cause large changes in ordering and inventory upstream in the supply chain. The name comes from the physics of using a whip—a smaller force or movement at one end can result in a much more powerful movement at the other end. In this article, we’ll…
Restaurant Insurance Cost & Coverage for Your Business
Restaurant insurance is a policy, or combination of policies, that protects restaurants from financial harm. This harm can be to your property or the financial stability of your company from a lawsuit brought by a third party for different types of losses (e.g., a lawsuit related to food poisoning). The most common type of policy…
Maternity Leave Policy & Laws (+ Free Templates & State Guide)
A maternity leave policy covers employee eligibility and maternity leave duration, along with benefits and other details associated with your policy. Under the federal Family & Medical Leave Act (FMLA), employers with 50 or more employees must provide unpaid maternity leave. Some states, however, require paid maternity leave, and some businesses choose to offer paid…
Employee Attendance Tracker: Overview, Instructions & Template
An employee attendance tracker is a way to track employee attendance, tardiness, absenteeism, and time off—a major part of managing employees. A good employee attendance tracker allows you to quickly identify repeat attendance-related offenses and act swiftly to discipline and coach your staff to correct such behavior. You can track employee attendance in two ways:…
Bad Debt Expense Journal Entry, Methods & Examples
Bad debts are uncollectible customer invoices that have already been recorded as revenue. The correct bad debt expense journal entry depends on which method you’re using. Direct method: The journal entry debits bad debt expense and credits accounts receivable (A/R). Allowance method: The journal entry debits bad debt expense and credits allowance for bad debts….
What Is an EFT Payment? How It Works for Small Businesses
In a nutshell, electronic fund transfer (EFT), sometimes called “pay by bank,” is a broad term used to classify all types of digital exchange of funds between two banks. While EFTs are generally slower to process than card payments, EFT payments (such as ACH and e-checks) are cheaper and equally secure as card payment transactions….
Closing Journal Entries: Definition, Process & Example
What are closing entries in accounting? Closing entries are journal entries that reduce the balances of all revenue and expense accounts to zero. Since income statement accounts are temporary accounts, their balances don’t transfer from one accounting period to another. Instead, they always start each period at a zero balance by debiting revenue and crediting…