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…
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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…
Earnings Withholding Orders: What Employers Need to Know
An earnings withholding order is a court-issued wage garnishment requiring employers to withhold and remit money from an employee’s paycheck to pay a creditor for an unpaid debt. Some examples of such debt are past-due student loans, unpaid taxes, and other delinquent bills. (But what about spousal or child support? That’s technically an income withholding…
What Is Dynamic Pricing? Types, Examples & Benefits
Are you looking to maximize profits? When used appropriately, dynamic pricing can help. If executed poorly, it can harm the customer experience and your brand name.
Dynamic pricing is a pricing strategy where prices fluctuate based on certain market factors, like demand, customers, or competition. The idea is that these price fluctuations maximize profits by capitalizing on changing market conditions. Unlike fixed pricing, which you see at grocery stores and boutiques and will adjust over time, dynamic pricing is much more…
What Is Gamification in Retail & How to Use It
Gamification is the use of gaming elements and mechanics within sales and marketing to boost customer engagement and create buying incentive. Within retail, gamification can be used to attract new customers, strengthen relationships with existing customers, enhance the shopping experience, and increase overall conversion rates and sales. Retailers can use gamification in-store (with tools such…