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.

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.

Barista cashing out a customer paying with their phone.

What Is Minimum Wage? 2025 Federal and State Minimum Wage

By Mike Kappel

The minimum wage law prevents employers from paying employees below a certain amount per hour. What is minimum wage? There is a federal minimum wage, but many states and localities set a higher wage. Comply with labor laws by learning what minimum wage your business may be subject to.

What Is Mileage Reimbursement, and How Does it Work?

By Mike Kappel

As a business owner, running errands is inevitable. But sometimes, you are too busy to make the run yourself. You might send an employee to pick up something or handle a task for you. If you find yourself counting on employees to use their personal cars for business, consider offering mileage reimbursement. So, what is […]

Bakery owner reviewing year-end payroll checklist.

A Year-end Payroll Checklist to Finish the Year Strong

By Mike Kappel

As the year comes to a close, you might be gung-ho about all the goals you want to achieve next year. But before you can get the ball rolling in the new year, you must wrap up some things in the current year—including your payroll.

Employer calculating post-tax deductions before writing paycheck.

What Are Post-tax Deductions from Payroll?

By Mike Kappel

Payroll isn’t as easy as handing checks to employees for the amount of time they worked. You also need to subtract deductions from payroll. Deductions include taxes, pre-tax deductions, and post-tax deductions from payroll.

The Employer’s Guide to Federal Income Tax Withholding

By Mike Kappel

When you run a business, the word “taxes” might fill you with dread—especially if you have employees. You pay some employment taxes (e.g., unemployment), while others are taxes you deduct from your employees’ wages and pay on their behalf. One of the taxes you must withhold is federal income tax. So, what is it, and […]