Category: Salary

Internal Revenue Service (IRS): What is it responsible for?

The Federal government utilizes the funds on federal purposes via federal taxation like roads, the military, education, and healthcare, among others. The Internal Revenue Service or IRS is tasked with the collection of the taxations and the regulation of the nation’s tax codes. Some of the functions of the Internal Revenue Service are to collect […]

Minimum wage: What is it? Why does it matter?

Minimum wage is one of the pillars of labor law to ensure that employees are given an equitable payment for the work that they do. First introduced for the U.S. under the Fair Labor Standards Act of 1938, minimum wage has been an economic and political issue of discussion ever since. Although the debate continues […]

Reimbursement: How does it work?

Good control over business expenditures is tantamount to financial health along with adherence. Reimbursement is one way to assist employees, along with businesses, to recover rightful expenditures without compromising good accounting procedures. Employees cover travel on the job, materials, or courses themselves, anticipating quick reimbursement by employers. Precise reimbursement policies enable employers to track expenses […]

Compensation: What is it? How to calculate it?

Compensation isn’t just about what shows up on a paycheck. It’s one of the clearest signals a company sends — to its employees, to the market, and to itself — about what and who it values. A well-structured compensation approach shapes culture, attracts the right people, and helps keep them engaged for the long haul. […]

Gross vs Net: What is the difference?

Paychecks aren’t just numbers on paper — they’re a reflection of everything behind the scenes: salary structures, tax codes, benefit deductions, and employee expectations. And one of the most common sources of confusion, even among long-tenured staff, is the difference between gross vs. net income. It’s not just a financial technicality — it affects how […]

Payroll: What is it? How does it work?

One such business process that impacts employee satisfaction, financial health, and compliance is payroll. Compensating workers in an accurate and timely manner is one of the drivers resulting in employee trust and employee motivation. Payroll is an expansive process that involves wage calculations, tax withholding, benefit withholding, and compliance in all areas – federal, state, […]

Annual income: What is it? How to calculate it?

An annual income is an essential number when budgeting, paying taxes, and calculating an individual’s overall financial situation. It is used to make a budget, qualify for loan purposes, plan for retirement, and invest. Whether one is working, an entrepreneur, or an investor, an annual income is crucial to make financial choices. Those which constitute […]

Applicant Tracking System (ATS): How does it work?

Handling huge numbers of job applications can be very time consuming to process for companies, which can very quickly end up causing massive delays, inefficiencies, and the loss of effective top notch talent. To prevent all this, most companies resort to Applicant Tracking Systems (ATS) to streamline the hiring process and make the process of […]

Federal minimum wage: What is it?

Minimum wage laws might seem straightforward on the surface, but anyone in HR knows they come with layers of nuance. At the center of it all sits the federal minimum wage—essentially the legal floor for hourly pay in the U.S. Established by the Fair Labor Standards Act (FLSA), it was designed to make sure workers […]

FICA: What is it? How is it calculated?

Social Security and Medicare might seem like far-off benefits until you realize you’re already paying into them with every paycheck. So where’s that money going? Enter FICA—the Federal Insurance Contributions Act. It’s not the most glamorous acronym, but it’s one that plays a major role in funding America’s safety net. Whether you’re in HR or […]