A personal service corporation (PSC) is a type of C corporation (C-corp) where the owners provide service personally to people or groups. A qualified PSC is where employees providing substantially all the professional services own at least 95% of the stock. These services can be in various professional business fields, like accounting, law, counseling, and…
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What Is Tap to Pay & How Does It Work?
Tap to pay is a wireless method of making payments by tapping or waving a credit or debit card or a payment device (i.e., smartphone/smartwatch) near a contactless-enabled terminal. Contactless payment uses near-field communication (NFC) technology to transfer data between the card or device and the terminal. Square was one of the first payment processors…
Employee Suspension: Ultimate Guide for Small Businesses
Employee suspension is a disciplinary action taken against an employee who may have engaged in serious misconduct or policy violations. It serves as a temporary measure to separate an employee from their work environment following wrongdoing. The suspended employee is removed from their position and prohibited from accessing company premises or engaging in work-related activities….
What Are General Liability Insurance Class Codes in Business Insurance?
General liability insurance class codes, or classification codes, are numbers that insurers use to classify a business’ industry risk based on the primary type of work it performs. Insurance companies also use general liability class codes to determine the premium, offer the correct type of coverage, and decide on any exclusions, if necessary. How General…
What Is Training & Development? A Guide for SMBs
Training and development (T&D) is the strategic process of enhancing employees’ skills, knowledge, and abilities to improve their performance and keep them engaged. Investing in a robust T&D program is crucial for your company’s success as it directly leads to increased employee productivity and efficiency and gives you a competitive edge. It can also be…
Ultimate Guide to Compa Ratio: What It Is & How to Calculate It
Compa ratio, also called compa-ratio, is short for compensation ratio and is a formula (Current salary/market average * 100) used to assess the competitiveness of an employee’s pay. A compa ratio of 100 indicates you’re paying an employee their full market value. Determining the compa ratio for all of your employees allows you to know…
17 Employee Training Methods (+ Free Plan Template)
Employee training is essential for developing skills, increasing efficiency, and, ultimately, boosting productivity. Choosing the right employee training method for your small business will depend on the type of training needed and the learning style of each employee. The top training methods for employees include: Apprenticeship Blended Learning Case Studies Collaborative Learning Cross-training e-Learning /…
What Is an S-corp & How Are S-corps Taxed?
S corporations (S-corps) are pass-through entities that don’t pay federal income taxes. Rather, their profits, losses, deductions, and credits pass to their shareholders’ tax returns. The shareholders are then responsible for paying federal income taxes on their share of the S-corp’s income based on their individual income tax rates. Since S-corps are not taxed at…