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ITINs: Use ‘em or Lose ‘em

Did you see the June 30, 2014, IRS announcement about ITINs? (And is it something that affects your small business?) The announcement. The IRS announced that an Individual Tax Identification Number (ITIN) that has not been used on a tax return for five consecutive years will be voided. In other words,

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keep an eye on profit and loss

Your Small Business Needs a Profit and Loss Statement!

As an owner of a small business, your understanding of the Profit and Loss Statement, or P&L, is absolutely crucial. The P&L is an important tool for all small business owners to possess, utilize, and maintain on a regular basis. By the end of this article, you should begin to comprehend how absolutely critical the […]

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Do You Pay Employees Per Diem?

If you have employees who travel away from home for business purposes, they may be eligible to be paid a per diem, or a daily rate to cover the expenses of traveling.  Covered expenses include lodging, and meals and incidental expenses (M&IE). There are maximum dollar limits allowed per day:

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What Is a Chart of Accounts (COA)?

As a business owner, it is important to keep accurate records of all of your company’s financial transactions. You want to record all of the money going into your business and all of the money that goes out of it. In general, you want to make sure that the money is broken down by categories […]

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What Is 401(k) Plan Testing?

This article was updated on 6/12/2014 from the original post 5/22/2012. According to Internal Revenue Service (IRS) requirements, annual testing of 401(k) plans is mandatory. The goal of these tests is to promote fairness and prevent discrimination between highly compensated employees (HCE) and non-highly compensated employees (NHCE). There are several types of 401(k) plan tests. […]

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4 Reasons Vacation Carryover Helps Your Business

In an attempt to retain loyal employees, many organizations have a vacation carryover policy in place that allows employees to carry over earned vacation time from one calendar year to the next. Among small businesses with fewer than 100 workers, 69% offer paid vacation to their workers (US Bureau of Labor Statistics, 2012). Employee vacation […]

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The Difference Between a Payroll Service and Payroll Software

This updated article was originally published on May 30, 2013. While small business owners have many options when considering how to pay employees, the complexity of payroll these days really makes old-fashioned ledgers and tax tables a poor solution. Even a small business needs a “payroll system” in order to satisfy all the regulatory requirements. […]

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taxable wages for payroll

4 Things You Need to Know About Taxable Wages

Small business owners need to understand taxable wages before they can run payroll and withhold the correct amount from an employee’s paycheck. Remember how surprised you were when you saw the chunk of cash that was taken out of your first paycheck and put aside for Uncle Sam? Fortunately for workers, not all wages are taxable […]

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5 Reasons You Shouldn’t Blow Off the Performance Review

As a business owner, you do a good job of juggling many different tasks, but it’s impossible to accomplish everything. Unfortunately,  the employee performance review can be one of the first items to fall off a business owner’s To-Do List. Writing an employee performance evaluation can be a tough assignment for any manager (even when you’re […]

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tip credit means paycheck plus tips must meet or exceed minimum wage

Tip Credit and Small Business Payroll

What does a small business owner need to know about tip credit? What does tip credit have to do with minimum wage? In some states, an employer can pay a lower hourly wage as long as the employee’s tips bring that wage up to or higher than the federal minimum wage. Tip Credit: Paycheck + tips […]

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