Author:

Mike Kappel

Mike Kappel, serial entrepreneur and CEO of Patriot Software, offers payroll advice from more than 30 years of experience to small business owners.

Small piggy banks on rising stacks of coins.

What Is FUTA Tax? Understanding the Federal Unemployment Tax Act

By Mike Kappel

The tax world is overflowing with funky-sounding acronyms, and FUTA might be the strangest one out there. You may be wondering, What is FUTA tax?

What Are Fringe Benefits for Employees? Guide for Employers

By Mike Kappel

Employers often want to offer attractive compensation packages to bring in good employees. But, compensation goes beyond an employee’s hourly or salary wages. It also includes additional small business employee perks, known as fringe benefits. So, what are fringe benefits? And, what are the types of fringe benefits?

What Is SUTA Tax? Overview of the Mandatory Payroll Tax

By Mike Kappel

When you become an employer, you add a lot of things to your plate, like running payroll. One of your employer responsibilities with payroll is withholding certain taxes, such as SUTA tax. But, what is SUTA tax?

What Is the EEO-1 Report, and Which Employers Need to File it?

By Mike Kappel

When your business grows, you may need to hire additional employees. But, hiring more employees comes with additional responsibilities. Depending on the number of employees you have and some other factors, you may be responsible for filing an EEO-1 report. So … what is EEO-1, anyways?

How to Pay Yourself from Your Business: Salary vs. Draw

By Mike Kappel

Running your own business doesn’t mean you sit around as stacks of cash come flooding into your office. Business owners are busy nonstop to keep up with operations. Since running a business is your full-time job, you need to know how to pay yourself from your business.

clock ticking with a bright yellow and blue background

What Is Time and a Half Pay, and Who Qualifies for It?

By Mike Kappel

If you have nonexempt employees, you have to pay them overtime, or time and a half, for any hours worked over 40 during the workweek. Learn all about time and a half, who qualifies for overtime, and how to calculate time and a half when running payroll.

Woman using cash-basis accounting online.

Pros and Cons of Cash-basis Accounting

By Mike Kappel

Choosing your accounting method is the first step in handling your company’s books. If you’re a small business owner, you may prefer the simplicity of cash basis as opposed to accrual or modified cash-basis accounting. But before solidifying your decision, learn the pros and cons of cash-basis accounting.

Yellow alarm clock on a yellow background.

Can Employees Donate PTO? How to Create a Leave Donation Program

By Mike Kappel

When it comes to running a business, you’re constantly looking for new ways to boost employee morale and increase employee retention. One solution? Letting employees donate PTO by creating a leave donation program. But, what is leave donation, exactly? And, how does it work when it comes to taxes?

Two HR professionals discuss EITC notice requirements.

Which States Require an EITC Notice (IRS Notice 797) for Employees?

By Mike Kappel

Several states require that employers give tax notices to employees regarding their possible eligibility for the Earned Income Tax Credit (EITC, or EIC). The tax notice is typically IRS Notice 797, although you can give alternative notifications.

Accrual vs. Cash-basis Accounting: A Comparison

By Mike Kappel

Business owners have a lot of decisions to make, especially in the beginning. One of the most important decisions is how to handle bookkeeping for your business. There are three methods of accounting to choose from: Cash-basis, modified cash-basis, and accrual accounting.