Startups needing funding often have to source financing by untraditional means. This is because getting a traditional business loan often involves a hard credit pull and close review of finances—and since many startups have limited resources, they may have difficulty qualifying for various lending products. Sourcing alternatives has become a more common way for startups…
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FICA Tax: What It is and How to Calculate It
The Federal Insurance Contributions Act (FICA) tax generates funds for the Social Security and Medicare programs and is imposed on both employers and employees. The total tax rate is 15.3% of the employee’s gross earnings, where you and your workers each pay 6.2% for Social Security tax and 1.45% for Medicare tax. If you’d prefer…
What Is Stop Gap Coverage? Coverage & Common Exclusions
If your business is in a monopolistic state then stop gap insurance is a crucial policy that provides liability protection to an employer when an employee gets injured on the job.
Stop gap insurance is a policy to protect a business owner’s liability if their employee sues because of a workplace injury. Most workers’ compensation policies include employer liability insurance automatically. However, some policies don’t have this protection. The four monopolistic states—Ohio, North Dakota, Washington, and Wyoming—do not include employer liability in the workers’ comp policies….
What Is Marketing Automation? A Small Business Guide
Marketing automation is the use of software to set up routines to automatically create, deliver, and measure the results of repetitive marketing tasks. It allows businesses to manage their marketing more efficiently across multiple channels, such as email, social media, websites, and ads. For example, you can use marketing automation to automatically send a welcome…
What Is a Nonprofit Organization?
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 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…