Payroll records are documents with any information about a company’s payroll, including data about employees, paychecks, and taxes. These include hiring documents, pay stubs, timecards, and leave documents, among other items. Key Takeaways: Keep payroll records for at least three years Certain states (like New York) and certain laws (like the Employee Retirement Income Security…
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What Is CPaaS? Benefits, Features & Top Providers
Communication platform as a service (CPaaS) is a cloud-based solution enabling businesses to directly embed communication features on existing business applications, thus extending the platform’s functionality. These communication capabilities include voice, messaging, email, fax, and video, depending on the provider. In this article, we’ll explore what is CPaaS for, how to choose a software solution,…
What Is a Flexible Work Schedule Policy? (+ Free Template)
A flexible work schedule policy outlines for employees an alternative to the typical 9–5, Monday–Friday workweek. It might allow for different daily start and end times or even a compressed four-day workweek. Employees who can customize their work hours can better manage their time and focus on their tasks. If you plan on allowing a…
Federal & State Payroll Tax Rates for Employers
Both employers and employees are responsible for payroll taxes. Federal tax rates, like income tax, Social Security (6.2% each for both employer and employee), and Medicare (1.45% each, plus an additional 0.9% withheld from the wages of an individual paid more than $200,000), are set by the IRS. However, each state specifies its own tax…
What Is a Net Operating Loss
A net operating loss (NOL) is when a business’s tax deductions exceed its income in a tax period. Tax rules allow owners to use losses incurred in one year to reduce income in other years and boost their refund. Presently, the NOL deduction is limited to 80% of taxable income, determined without regard for the…
Double Declining Balance Method: Formula & Free Template
The double declining balance (DDB) method (also called 200% declining balance method or 200DB) computes higher depreciation expense in the earlier years and then declines as it goes nearer the end of the useful life. It is called “double declining” because the depreciation rate is twice the straight-line rate. The double declining balance method formula…
Types of Cash Registers (& Why You Should Use a POS)
Cash registers are machines that businesses use to record transactions and accept payments from customers. Once just advanced versions of calculators that add sales totals, cash registers of today can perform many more functions, including generating reports, accepting multiple payment methods, and managing inventory. Some companies may still prefer electronic cash registers (ECRs), which can…
Two Weeks Notice: Can You Legally Require One?
While providing advance resignation notice may have become a customary practice in many organizations, there are no federal or state laws that prevent employees from quitting without two weeks notice. Given that, you cannot legally require one. This is mainly due to the at-will employment doctrine, a predominant employment agreement in the US that allows…