While S corporations (S-corps) do not pay federal income taxes, they do pay payroll taxes, built-in gains tax, and excess net passive income (ENPI) tax. They also pay penalties if their annual information return Form 1120S is not filed on time. Both the ENPI and the built-in gains tax are only applicable if the S-corp…
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How Real Estate Commission Splits Work (+ Free Calculator)
A real estate commission split is the percentage of earnings agents and brokers receive when they assist a buyer, seller, or renter in closing on a property. There are various types and ranges of commission agreements, with standard models paying 60% to 70% to agents and high-split models paying 90% to 100%. The split is…
What Is BNPL? Small Business Guide to Buy Now, Pay Later
Buy now, pay later is a new and popular payment option, particularly for online purchases. However, does the boost in sales BNPL provides offset its steep processing fees?
Buy now, pay later (BNPL) is a type of short-term financing that lets your customers pay for purchases over time, often with zero or low-interest rates. BNPL payments first gained traction with online shoppers looking to finance apparel and beauty purchases. While BNPL surged in popularity during the pandemic to finance large purchases, today, people…
Accounts Receivable (A/R) Turnover Ratio: Definition & Calculator
The accounts receivable (A/R) turnover ratio is helpful in managing your A/R and measures how effectively a business collects payment from customers they have extended credit to within a given period―generally one year. Analyzing the A/R turnover should include industry benchmarks to give you a full understanding of whether the company is doing fine at…
What Are Payment Links & How to Use Them
With a payment link, merchants can accept payments remotely without the need of customer accounts, a website, or special apps.
Payment links (also called checkout links or pay by links) provide merchants with a means to request and collect remote payments on almost any online and remote platforms. It is as simple as attaching the link to an email, a digital invoice, on your websites and social media posts, in your instant messages, and even…
What Is Fixed Asset Accounting? 4 Things You Need To Know
Fixed asset accounting is the process of capitalizing the purchase cost, allocating the cost over the asset’s useful life via depreciation, testing the fixed asset for impairment, and removing the fixed asset from the books following a disposal. We go over each in detail and provide examples. 1. Accounting for the Fixed Asset Cost The…
Applicant Screening: 5 Steps to Find the Perfect Candidate
In the complex world of business, hiring the right candidate is a crucial task that can significantly impact a company’s success. A key piece of this process is applicant screening, a systematic method to evaluate potential employees. The applicant screening process includes initial job application and resume reviews, pre-interviews, assessments, and reference and background checks….
What Is Employee Communication Software?
Employee communication software is an online tool to unify and enhance collaboration within your organization. It provides a centralized platform where employees can connect, share information, and stay on task with each other and management. This type of software enables seamless connection across different teams and departments, eliminating the need for multiple channels, such as…