A professional employer organization (PEO) is a co-employment solution for small businesses seeking HR, payroll, and employee benefits. Acting as the employer of record (EoR) for payroll and taxes, the PEO handles tax filings, unemployment insurance, and worker’s compensation. However, you retain full control over daily business operations, such as marketing and customer service. If…
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What Is Owner’s Equity in Accounting?
Owner’s equity is the amount left after subtracting all the company’s liabilities from the assets.
Think of owner’s equity like a leftover pie after everyone you owe has taken their slice—it’s what’s truly yours as the owner. Unlike a company’s fair market value, owner’s equity doesn’t reflect a company’s overall worth. Instead, it shows how much capital the owners have invested in the business and how much of the business’s…
What Is a Money Services Business? Types, Regulations & More
A money services business (MSB) is a non-bank financial institution, business, or person engaging in money transmission, money conversion, or money exchange. These include selling money orders, cashing checks, and exchanging foreign currency. MSBs are regulated by the Financial Crimes Enforcement Network (FinCEN), must follow all the regulations set by the Bank Secrecy Act (BSA),…
What Is Product Positioning? Examples & Importance
Product positioning is how you present your product to your audience to give them a specific impression. It is a strategy that motivates your target market to engage with your brand and eventually purchase your product. Proper product positioning also allows you to stand out from the (increasingly tough) competition. Importance of Product Positioning Product…
5 Alternative Funding for Startups
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…
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…