<p><a href="https://www.businessinsider.com/category/small-business-ingenuity"></a></p><div type="image" title="chris_carbo" height="955" width="1274" msid="79610546" hostid="261"></div><ul class="summary-list"><li><keyword id="486278" type="PERSON" weightage="60" keywordseo="payroll">Payroll</keyword> and benefits platform <keyword id="10394246" type="UNKNOWN" weightage="60" keywordseo="justworks">Justworks</keyword> recently launched a new look for its brand, including a fresh logo, updated colors, and an original typeface.</li><li>The company's senior product designer Chris Carbo explained how the company started the year-long process and gave his tips for other companies looking to freshen up their brand identity. </li><li>He said a rebrand should fit the personality of your company as well as how it has matured — don't rebrand until you're confident in who you are.</li></ul><p>If you've logged onto HR and payroll company Justworks lately you've probably noticed a change in the website's appearance. It's not too obvious, but feels crisper, like sipping a refreshing drink on a summer day. </p><p>Subtlety was one of the company's objectives in the brand refresh they completed this fall. Since launching in 2012 as a Professional Employer Organization (PEO), Justworks now has 100,000 co-employees, meaning Justworks disburses benefits and payroll on behalf of small businesses and mid-sized companies with two to 200 employees. Clients include Axios, TodayTix, and Ouai. With these milestones came a desire to reinvent the company's aesthetic. </p><p>Justworks' senior product designer, Chris Carbo, told Business Insider that the company had been talking about a rebrand since he started working there three and a half years ago. "We've grown quite a lot, so we wanted to make sure that our visual design and language system was coming through in the same way," he said. At the onset of the pandemic, the team was in the middle of fine-tuning the plan and putting together user guidelines for the new <keyword id="135160" type="ORGANIZATION" weightage="60" keywordseo="branding">branding</keyword> assets. In October, Justworks rolled out an updated logo, typeface, and colors.</p><p>Carbo walked us through the year-long process of Justworks' rebrand, from initial conversations to the final push into the internet universe. He explained important principles business owners should keep in mind if they're considering a rebrand of their own. </p><h2><strong>The steps to refreshing your brand</strong></h2><div type="image" title="Justworks - new logo, branding" height="2160" width="2880" msid="79610549" hostid="261"></div>Justworks started discussing the project around October 2019, Carbo said. Once it was approved, he and his team put together a request for proposal (RFP) to explain what they were looking for and what they wanted to achieve from the project. Then they interviewed design agencies and studios to hire. <p>They went with <a href="https://order.design/">Order</a>, a design studio based in Brooklyn, New York, with which Justworks had partnered for a previous project and also happens to be a customer. "We were really intrigued by what they had done and we connected really well based on what they had presented and what we were looking for," Carbo said.</p><p>By January, Order presented three different concepts for Justworks to choose from, followed by check-in meetings as their selected concept progressed. Order cofounder and partner Hamish Smyth said the companies were in constant contact and their previous knowledge and experience with the company gave them a leg up. </p><p>"Justworks works hard on their company culture, and it showed in how they treated a partner like us," Smyth said. "They really listened to our recommendations, but also pushed us at the right times."</p><p>The final touch was creating a unique typeface, or font, to represent Justworks' brand. Order suggested another collaborator, <a href="https://www.colophon-foundry.org/">Colophon Foundry</a>, a company that specializes in designing typefaces for retail and media. The resulting custom typeface was named "oatley" after Justworks' founder and CEO Isaac Oates. </p><p>"By designing a custom typeface, not only would they save on annual typeface licensing fees, but every employee would be able to create branded materials all by simply selecting the Justworks typeface in their software of choice," Smyth said.</p><h2><strong>Testing on digital and communicating throughout the process</strong></h2><div type="image" title="Justworks rebranding logo colors" height="3300" width="4401" msid="79610551" hostid="261"></div><p>As Order and Colophon sent files over, Justworks tested out the new design elements to ensure they translated on the technical side. Carbo's team was impressed with the visuals, but he said it was most important they worked on the backend. For example, a brand may like how a script font appears visually, but if it's difficult for customers to read on mobile, it could do more harm than good. Similarly, colors look different on a computer screen than on paper. Companies need to consider how visuals translate digitally when they're creating a brand identity.</p><p>Carbo's team of designers and engineers communicated updates through a feedback loop. Throughout the process, it was not only important to communicate between teams, but with the entire company.</p><p>"We kept up through Zoom calls and sharing that information with the rest of the company through Zoom," he said. "In terms of working with the engineers for implementation, it wasn't too much different than any other project."</p><p>Communication started from the top, signaling that leadership was firmly behind all these changes and keeping Justworks' stakeholders updated. </p><p>"They were really great because they trusted us," Carbo said. "They knew what we were doing and were fully behind our decisions, which was really empowering."</p><h2><strong>Plan to have extra time and release changes gradually</strong></h2><div type="image" title="Justworks first round options" height="738" width="984" msid="79610554" hostid="261"></div><p>Carbo said the project took longer than expected, so it's always good to plan for more time than you think you need. Justworks officially launched its new look in October, a year after the project was greenlit, and in the middle of a global pandemic. "We weren't really working against a deadline, so we were able to accommodate for that extra needed time," he said. </p><p>One of the most important parts of the process was releasing updates gradually, so as not to shock customers with drastic changes. Justworks didn't want to stray too far from the branding people already recognized, so the team made minor tweaks to the colors, for example. "Rather than just release everything all at once. It's been easier just to have those changes come through over time," he said. </p><p>Lastly, a rebrand should fit the personality of your company as well as how it has matured. Don't consider refreshing your branding until you're confident in who you are.</p><p>"If you're still trying to identify who you are as a company that's going to change and grow," Carbo said.</p>

How to refresh your business' branding for a virtual world, according to a senior product designer who led payroll company Justworks' rebrand

<ul class="summary-list"><li>46% of American workers take less paid time off than they are offered, per the Pew Research Center. </li><li>Respondents worry taking time off will slow down their career advancement, among other concerns.</li></ul><p>American workers are taking fewer paid vacation days than their employers offer, <a href="https://www.pewresearch.org/social-trends/2023/03/30/how-americans-view-their-jobs/?utm_source=AdaptiveMailer&amp;utm_medium=email&amp;utm_campaign=23-3-30%20Work%20Culture%20GRAL%20DISTRO%20-%20Press%20Release&amp;org=982&amp;lvl=100&amp;ite=11333&amp;lea=2338825&amp;ctr=0&amp;par=1&amp;trk=a0D3j00001334J7EAI" target="_blank" rel="noopener">according to new research from the Pew Research Center</a>. </p><p>Researchers surveyed 5,902 Americans who work either full or part-time jobs to understand what they think about their current jobs, including their workplace benefits like paid time off. </p><p>They found that nearly46% of American workers aren't taking all of their allotted paid time off.</p><p>52% of those who don't take all of their paid time off said they "don't feel they need to take more time off," according to the study, while 49% worry about falling behind at work.</p><p>Perceptions around paid time off were found to vary based on income level, Kim Parker, a researcher involved in the study, told Insider.</p><p>Lower-income workers said they were "more likely" to worry about losing their jobs for taking all of their time off than "middle and upper-income workers." However, higher-income workers are more concerned that they'll fall behind at work and don't want to offload additional tasks to their coworkers in their absence. </p><p>Workers under the age of 50, Parker said, cited concerns that taking more vacation days could hurt their chances of career advancement. 12% of workers say their managers or supervisors discourage them from taking time off. </p><p>Still, paid time off is an important benefit to most workers.</p><p>62% of workers said it's "extremely important" that jobs offer paid time off for doctor's appointments, minor illnesses, and vacations. </p><p>Parker called the findings "interesting" as they deviate from <a href="https://www.pewresearch.org/social-trends/2017/03/23/americans-widely-support-paid-family-and-medical-leave-but-differ-over-specific-policies/#:~:text=A%20new%20study%20conducted%20by,government%2C%20should%20cover%20the%20costs." target="_blank" rel="noopener">Pew's previous research</a> which found that workers "value flexibility" in how they spend their time off.</p><p>Workers "want to know they can take time off when they need it," she said, "but this new data shows us that many workers don't. " </p><p>The findings come as many companies like <a href="https://www.businessinsider.com/microsoft-will-stop-tracking-us-employee-vacation-time-2023-1">Microsoft</a> and <a href="https://www.cnn.com/2022/05/16/investing/goldman-sachs-unlimited-vacation/index.html" target="_blank" rel="noopener">Goldman Sachs</a> adopt unlimited paid-time-off policies amid <a href="https://www.businessinsider.com/gen-z-transforming-the-workplace-key-ways-mckinsey-execs-2023-1">changing workplace norms</a>.</p><p>But workplace experts say that unlimited vacation policies — which may sound great in theory — are limiting.</p><p>Workers may feel guilty for taking too much time off and worry that doing so will give their employers the impression that they are greedy or lazy, <a href="https://www.businessinsider.com/unlimited-pto-vacation-scam-time-off-managers-fight-burnout-culture-2023-1">according to experts</a>. In turn, refusing to take time off <a href="https://www.businessinsider.com/paid-sabbaticals-leave-company-productivity-employee-retention-wellbeing-loyalty-2023-1">can lead to dissatisfied employees and</a><a href="https://www.businessinsider.com/paid-sabbaticals-leave-company-productivity-employee-retention-wellbeing-loyalty-2023-1"> burnout.</a></p><p>PTO is "the scam of the century," Geoffrey James, the author of multiple business books, <a href="https://www.inc.com/geoffrey-james/scam-of-century-unlimited-paid-vacation.html">wrote in Inc</a>.</p><p>"Unlimited vacation time is classic bait-and-switch," <a href="https://www.inc.com/geoffrey-james/scam-of-century-unlimited-paid-vacation.html" target="_blank" rel="nofollow noopener">he wrote </a>in a piece detailing his experience at a company with this policy. "While you might daydream about taking a month off, chances are you won't have the chutzpah to actually do so." </p><p>For employees to break out of this mindset, employers may need to encourage them to take more time off, Allison Rutledge-Parisi, the senior vice president of people at Justworks, an HR-tech company, <a href="https://www.businessinsider.com/unlimited-pto-vacation-scam-time-off-managers-fight-burnout-culture-2023-1">previously told Insider</a>.</p><p>"Unlimited PTO can serve as a self-care and retention tool for employers and employees, respectively — but only if organizations are encouraging time off within the work culture," Rutledge-Parisi said. </p>

Nearly half of American workers don't take all of their PTO

<ul class="summary-list"><li>Companies like <a href="https://www.businessinsider.com/microsoft-is-giving-us-employees-unlimited-time-off-report-2023-1">Microsoft</a> and <a href="https://www.cnn.com/2022/05/16/investing/goldman-sachs-unlimited-vacation/index.html">Goldman Sachs</a> are adopting unlimited paid time off.</li><li>But it isn't what it seems, HR leaders and employees who have experience with the policy say.</li></ul><p>Unlimited paid time off conjures up images of vacations unfurling over slow-paced weeks at the beach. But in reality, this promise of unchecked time isn't boundless. </p><p>Instead, unlimited PTO lets businesses offload a costly liability from their books — unused vacation days that have to be paid out — and keeps many workers from feeling like they're owed more than a few days away each year.</p><p><a href="https://www.businessinsider.com/microsoft-is-giving-us-employees-unlimited-time-off-report-2023-1">Microsoft</a> and <a href="https://www.cnn.com/2022/05/16/investing/goldman-sachs-unlimited-vacation/index.html">Goldman Sachs</a> are part of a <a href="https://money.usnews.com/careers/slideshows/companies-that-offer-unlimited-vacation-days">growing list</a> of major employers to adopt the policy. While the growth of unlimited PTO might seem like a big win for workers, research and commentary from workplace experts suggest unlimited vacation is often, well, limiting.</p><p>Without bosses encouraging workers to take time off, the pressure to not appear greedy or lazy can keep employees from cashing in this benefit. For many workers, it can feel like borrowing time, rather than taking time you are owed.</p><p>That's why workers with "unlimited" time off often end up writing fewer out-of-office messages than those whose employers fork over a set number of days each year, according to <a href="https://fortune.com/2022/03/03/unlimited-paid-time-off-is-more-popular-than-salary/">employee accounts</a>, <a href="https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/4-lessons-about-unlimited-vacation.aspx">human-resources reports</a>, and a <a href="https://blog.namely.com/does-your-pto-plan-type-even-really-matter/">2022 review</a> by the platform Namely of 1,000 companies for which it provided HR services. </p><p>Leaders promising unlimited PTO need to give clear outlines on how employees should manage their time off and encourage their workers to take the days. Otherwise, employees are better off with the more-traditional limited vacation policy, according to HR leaders and business founders.</p><p>Geoffrey James, a contributing editor for Inc. and author of several business books, called unlimited PTO "the scam of the century." </p><p>"Unlimited vacation time is classic bait-and-switch," <a href="https://www.inc.com/geoffrey-james/scam-of-century-unlimited-paid-vacation.html">he wrote</a>, explaining his experience with having the benefit. "While you might daydream about taking a month off, chances are you won't have the chutzpah to actually do so." </p><h2><strong>Without a culture that prioritizes mental health, unlimited PTO falls short </strong></h2><p><strong></strong></p><div type="image" title="As the fallout from fall burnout hits office spaces, employers need to prepare to address their employees demands." height="2810" width="4015" msid="97029188" hostid="261" sizebytes="204262"></div><p>Employees with unlimited PTO often take less time than workers who get a set number of days and therefore see them as benefits meant to be used up, according to Neha Khurram, the founder of The Hiring Community, a networking community of founders and recruiters. </p><p>"Without a recommended minimum such as 4 weeks, reminders, and a culture of actually taking time off with access to email and instant messaging cut off, employees are unlikely to make use of their time off," Khurram told Insider via email.  </p><p>Allison Rutledge-Parisi, the senior vice president of people at Justworks, an HR-tech company, agreed. </p><p>"Unlimited PTO can serve as a self-care and retention tool for employers and employees, respectively — but only if organizations are encouraging time off within the work culture," she told Insider in an email.</p><p>Then there's the issue that workers can't trade vacation days for money, often called "cashing out," like one can sometimes do with a limited policy.</p><p>Some employers have learned about the shortcomings of unlimited vacation through experience and have walked back their policies. </p><p>Facet, an IT-networking and -recruiting company, ditched its unlimited-vacation policy after it found its <a href="https://www.facet.net/posts/why-we-ditched-our-unlimited-vacation-plan">workers were taking</a> less time off than before the company instituted the policy.</p><p>"Unlimited vacation is a scam," Facet CEO Robert Sweeney wrote in a <a href="https://www.facet.net/posts/why-we-ditched-our-unlimited-vacation-plan">2019 blog post</a> when the company made the change back to a traditional policy. "Vacation is not really unlimited. If you take too much time off, you will get fired."  </p><p>Unknown, a recruiting company in London, <a href="https://affiliate.insider.com?postID=63c1714faca7611152630c04&amp;site=bi&amp;u=https%3A%2F%2Fwww.linkedin.com%2Fposts%2Follie-scott-6b6b9b42_were-sacking-off-our-unlimited-holiday-at-activity-6932251711067598848-2SYp%2F%3Futm_source%3Dlinkedin_share%26utm_medium%3Dandroid_app">canceled unlimited PTO</a> in 2021 after it found workers felt guilty and took too little away from the office. The company instead allots 32 paid days off a year for all workers.</p><p>Unknown's CEO, too, slammed the policy. </p><p>"Humans work best when they're given clarity," the Unknown founder Ollie Scott wrote on LinkedIn. "So we're reverting back to a set amount of days." </p><p>He added: "Life is meant to be lived. Everyone in the business will have the same number."</p>

Unlimited vacation is a scam unless managers fight burnout culture

<ul><li><strong><keyword id="6367884" type="UNKNOWN" weightage="60" keywordseo="tpg" source="Orion">TPG</keyword> stock jumped as much as 14% in its debut on Thursday, becoming the biggest <keyword id="6354763" type="UNKNOWN" weightage="60" keywordseo="ipo" source="Orion">IPO</keyword> so far this year.</strong></li><li><strong>The private equity firm priced its IPO at $29.50 per share, giving it an initial valuation of about $9 billion.</strong></li><li><strong> TPG has $109 billion in assets under management and more than 280 portfolio companies.</strong></li><li id="recirc"><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell?utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_source=markets&amp;utm_source=markets&amp;utm_source=markets&amp;utm_source=markets&amp;utm_source=markets&amp;utm_source=markets&amp;utm_source=markets" target="_blank" rel="noopener"><strong>Sign up here for our daily newsletter, 10 Things Before the Opening Bell</strong><strong>.</strong></a></li></ul><hr /><p>Private equity giant <a href="https://markets.businessinsider.com/stocks/tpg-stock">TPG</a> surged as much as 14% in its <keyword id="6368158" type="UNKNOWN" weightage="60" keywordseo="trading" source="Orion">trading</keyword> debut on Thursday, giving the firm a valuation of more than $10 billion.</p><p>The firm <a href="https://www.businesswire.com/news/home/20220112006064/en/TPG-Announces-Pricing-of-Initial-Public-Offering">priced its IPO at $29.50 per share,</a> selling 33.9 million shares to raise about $1 billion in proceeds at a more than $9 billion valuation. That makes it the biggest IPO so far this year. The IPO price represented the midpoint of TPG's estimated price range between $28 and $31 per share.</p><p>Shares hit a high of $33.50 in its first minute of trades. The stock trades under the ticker symbol "TPG" on the Nasdaq exchange. </p><p>TPG was founded as Texas Pacific Group in 1992 and found its first big success when it bought Continental Airlines out of bankruptcy and turned around the company. From there, the company has invested in several companies that have since gone public like <a href="https://markets.businessinsider.com/stocks/abnb-stock">Airbnb</a> and <a href="https://markets.businessinsider.com/stocks/spot-stock">Spotify</a>, and has more than 280 active portfolio companies.</p><p>The IPO is being closely watched by investment bankers, as recent market weakness has put on hold what was a busy IPO market last year. On Wednesday, software firm <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fsoftware-platform-justworks-cites-market-conditions-in-postponing-ipo-11642019578%3Fmod%3Darticle_inline">Justworks postponed its IPO</a>, citing market conditions. </p><p>TPG has long toyed with the idea of going public and now joins private equity rivals <a href="https://markets.businessinsider.com/stocks/bx-stock">Blackstone</a>, <a href="https://markets.businessinsider.com/stocks/kkr-stock">KKR</a>, and <a href="https://markets.businessinsider.com/stocks/cg-stock">Carlyle Group</a>, among others, with stock listings. But TPG's size pales in comparison to the $731 billion managed by Blackstone and KKR's $459 billion.</p><p>Still, TPG's small size shouldn't stop it from being gobbled up by investors who may be hoping for the similar returns of other public private equity firms. Over the past year, Blackstone, KKR, and Carlyle Group outperformed the S&amp;P 500 by 75, 53, and 37 percentage points, respectively. </p>

TPG surges 14% in public debut after first major IPO of the year values the private equity giant at $10 billion

 <ul class="summary-list"><li>Gusto, a software firm known for its payroll product, has grown profits alongside its customer base.</li><li>Insider spoke to a Gusto cofounder and three investors about its winning strategy.</li></ul><p>Joshua Reeves, the contemplative CEO of the cloud-based payroll startup Gusto, couldn't have predicted the pandemic and the resulting ripple effects that nearly savaged his business and the public markets.</p><p>Shortly after the lockdowns, many of Gusto's customers, from coffee shops to florists, had to close or defer payments, and the company's revenue shrunk. "No one had a crystal ball," Reeves later <a href="https://www.forbes.com/sites/davidjeans/2021/08/10/gusto-10-billion-ipo-hr-software/?sh=1e5f1e2f6c92">told Forbes</a>.</p><p>And while the events of the last three years have tested the payroll provider in countless ways, Gusto now seems to be in peak shape<a href="https://www.businessinsider.com/gusto-200-million-funding-valuation-doubled-38-billion-2019-7"></a>. A quick-thinking team has launched new products and added others through acquisitions, increasing revenue by more than 50% annually through the Covid-19 pandemic, according to a source familiar. Gusto executives declined to share total revenue.</p><p>"They have for many years demonstrated consistent high growth with a very strong business model," Laela Sturdy, a general partner at CapitalG and a board observer at Gusto, said. While she wouldn't comment on the timing of a possible IPO, she said that with Gusto's discipline around balancing growth and profitability, "they'll be well-positioned when the time is right."</p><p>But for Gusto to find a warm reception on the public markets, it has to prove to potential investors it can keep up with the competition.</p><h2>Made for small businesses</h2><p>Founded in 2011, Gusto makes software that small and medium businesses use to manage their employee-related needs, including onboarding, payroll, health benefits, and retirement accounts. It runs on the cloud, so customers can collaborate with their teams and access their accounts at any time on smartphones or tablet devices.</p><div type="image" title="Gusto grew to more than 1,400 employees in offices in Denver, San Francisco, and New York." height="1504" width="2000" msid="94500110" hostid="261"></div><p>Gusto's flagship product is a payroll system geared for companies with 100 employees or fewer and counts <a href="https://www.forbes.com/sites/davidjeans/2021/08/10/gusto-10-billion-ipo-hr-software/?sh=3b9fa22d6c92">more than 200,000 customers</a>. That's a drop in the bucket compared to legacy payroll providers like ADP and Paychex, which, according to <a href="https://filecache.mediaroom.com/mr5mr_adp/178376/ADP_Factsheet_03-08-2022.pdf">company</a> <a href="https://investor.paychex.com/company-information#:~:text=Backed%20by%20more%20than%2045,12%20American%20private%2Dsector%20employees.">statements</a>, have 1.6 million clients between them.</p><p>Still, tools for small businesses is a huge market — one that a tech industry that has focused on the more lucrative enterprise market has largely ignored. According to the Small Business Administration, there are <a href="https://cdn.advocacy.sba.gov/wp-content/uploads/2021/08/30144808/2021-Small-Business-Profiles-For-The-States.pdf">32 million</a> small businesses in the US employing about 61 million people, nearly half of the country's private workforce.</p><p>Gusto's hyperfocus on small businesses sets it apart from other payroll providers, Shalini Rao, a growth-equity partner at <a href="https://www.businessinsider.com/al-gore-sustainability-generation-1-billion-growth-equity-fund-2019-5">Generation</a>, an investment-management firm and a Gusto investor, said. As companies grow and chase larger enterprises as customers, they lose sight of the discrete needs of small businesses, she said.</p><div type="image" title="Shalini Rao, a Gusto investor and director of growth equity at Generation, likened the company's payroll product to a Trojan horse because it's how Gusto gets into so many businesses." height="768" width="1024" msid="94500112" hostid="261"></div><p>Gusto now offers a suite of products and services adjacent to payroll, which Rao likened to a Trojan horse because it's how Gusto gets most of its customers. The startup hopped on pandemic-era workplace trends, adding products for small businesses to <a href="https://gusto.com/about/news/corporate/ppp-loan-application-gusto">apply for government loans</a> and for employees to <a href="https://www.businessinsider.com/gusto-launches-salary-early-service-for-small-business-clients-2020-10">access their wages</a> between paychecks. It also helps customers register employees across state lines and pay international contractors, with the number of clients paying international contractors up twentyfold since the start of this year.</p><p>"From a product perspective, we're here alongside businesses as they swerve with every curve that comes at them, helping them thrive and ultimately grow. And when they grow, so does Gusto," Eddie Kim, a Gusto cofounder and the company's chief technology officer, said.</p><p>Gusto has also expanded through strategic acquisitions. Last year, it bought three companies across the tax compliance and remote work spaces — <a href="https://techcrunch.com/2021/06/17/gusto-makes-first-acquisition-buying-ardius-to-expand-into-rd-tax-credits/">Ardius</a>, <a href="https://www.businessinsider.com/gusto-acquiring-tax-startup-symmetry-fintech-dealmaking-payroll-tax-software-2021-7">Symmetry</a>, and <a href="https://techcrunch.com/2021/10/26/gusto-buys-remoteteam-com-in-bid-to-support-more-international-hiring/">Remote Team</a> — and <a href="https://www.businessinsider.com/gusto-acquiring-tax-startup-symmetry-fintech-dealmaking-payroll-tax-software-2021-7">it's indicated</a> that those firms will continue to run independently. And Noyo, a startup designed to automate employee benefits, recently raised <a href="https://www.businessinsider.com/noyo-raises-series-b-norwest-and-gusto-health-benefits-2022-5">$45 million</a> in funding from investors like Norwest and Gusto, which uses Noyo.</p><p>In this way, Gusto aims to be the scaffolding of the HR-tech stack, with services bolted on through acquisition and investment.</p><p>"We spent a lot of time and energy on building out our own internal-development capabilities. That has to be the foundation," Jason Green, a founding partner of Emergence Capital and a board observer at Gusto, said. "But then there were some interesting opportunities that came up that were adjacent but not necessarily ones that we would have wanted to distract ourselves internally."</p><div type="image" title="Nearly half of Gusto's workforce clocks in from home, while 30% of senior leadership is fully remote." height="2000" width="2666" msid="94500113" hostid="261"></div><p>Gusto has ruthlessly prioritized areas like payroll and tax-filing that small businesses need to run. But from the beginning, Gusto has "thought carefully" about not just the employers buying its software, but about the employees using it, Sturdy said. It offers retirement accounts and budgeting tools to help employees "live a better life," she said. And it could still tap into more consumer-focused products for employees, a massive category on its own, she said.</p><h2>Setting a course for an IPO</h2><p>Gusto has deep coffers — and <a href="https://www.businessinsider.com/gusto-hires-github-cfo-mike-taylor-tesla-takeovers-acquisitions-2022-1">a new chief financial officer</a> from GitHub and Tesla — to go after its growth ambitions. It has raised nearly $700 million in total funding, according to PitchBook data, and hit a valuation of <a href="https://www.businessinsider.com/fintech-crypto-startups-expected-ipo-vc-investors-2022-4">$9.5 billion</a> in 2021. For comparison, Gusto's closest competitor, Rippling, also has <a href="https://www.forbes.com/sites/amyfeldman/2022/05/11/parker-conrads-rippling-hits-1125-billion-valuation-as-former-zenefits-ceo-rebounds-with-hr-software/?sh=1238a55e7068">$700 million</a> in funding but is valued at $11.25 billion. The startup — Parker Conrad's <a href="https://www.forbes.com/sites/amyfeldman/2020/05/28/the-comeback-of-a-fallen-tech-unicorn-ceo/?sh=7708f7e1100a">second act</a> after his previous firm, Zenefits, blew up — booked over <a href="https://www.forbes.com/sites/amyfeldman/2022/05/11/parker-conrads-rippling-hits-1125-billion-valuation-as-former-zenefits-ceo-rebounds-with-hr-software/?sh=1238a55e7068">$100 million</a> in annual recurring revenue, according to a Forbes report.</p><p>For years, Reeves <a href="https://www.businessinsider.com/gusto-200-million-funding-valuation-doubled-38-billion-2019-7">has said</a> that selling Gusto is out of the question. He intends to take the firm public. Now it's a matter of timing. The window for tech firms to go public slammed shut this year. For instance, another large payroll provider, Justworks, <a href="https://www.cnbc.com/2022/07/13/ipo-market-stays-dormant-as-justworks-and-fresh-market-withdraw-their-filings.html">withdrew</a> its IPO filing in July.</p><p>But Gusto has years of runway and can afford to wait for market conditions to improve, Green, an <a href="https://techcrunch.com/2015/04/06/google-capital-leads-a-60-million-series-b-round-to-help-zenpayroll-serve-larger-businesses/">early</a> Gusto investor, said.</p><p>"I don't see any cap to the upside in terms of the market potential for the business, and you've got a team that maybe by the time this company goes public has got 15 years of excellence," he said. "Public-market investors — when they move from fear to greed again — will find this to be a pretty unique asset and opportunity."</p>

How the cloud-software startup Gusto won over investors and small businesses by breaking away from the pack

<p>Welcome back, readers. A judge has ruled the FTC can move forward with <a href="https://www.reuters.com/legal/litigation/us-judge-rejects-facebook-request-dismiss-ftc-antitrust-lawsuit-2022-01-11/">an antitrust lawsuit against Facebook</a>, and we compared Ford's F-150 Lightning and Chevy's Silverado EV to figure out <a href="https://www.businessinsider.com/ford-electric-f150-lightning-vs-chevy-silverado-ev-range-price-2022-1">which one reigns supreme.</a> </p><p>Let's get started. </p><hr /><p><em>If this was forwarded to you, </em><a href="https://www.businessinsider.com/subscription/newsletter/10-things-in-tech"><em>sign up here</em></a><em>. Download Insider's app – click </em><a href="https://apps.apple.com/app/apple-store/id554260576"><em>here for iOS</em></a><em> and </em><a href="https://play.google.com/store/apps/details?id=com.freerange360.mpp.businessinsider"><em>here for Android</em></a><em>.</em></p><hr /><p><a href="https://www.reuters.com/legal/litigation/us-judge-rejects-facebook-request-dismiss-ftc-antitrust-lawsuit-2022-01-11/"><strong></strong></a></p><p><strong>1. A judge has rejected Facebook's request to dismiss an antitrust lawsuit. </strong>The US Federal Trade Commission has been working to prove that Facebook abuses a monopoly position in social media. Yesterday, a US judge dealt the FTC a win by rejecting Facebook's motion to dismiss the lawsuit, and allowing the case to move forward.</p><ul><li>This isn't the first time the FTC has tried coming for Facebook. The agency filed the first version of its antitrust case in 2020, which sought to unravel Facebook's acquisitions of WhatsApp and Instagram. </li><li>But last summer, the judge dismissed its first complaint, ruling there was insufficient evidence for the FTC's primary claim: that Facebook has monopoly power. The FTC was allowed to amend its complaint and try again. </li><li>In <a href="https://www.documentcloud.org/documents/21177063-memorandum-opinion">an opinion</a> issued yesterday, the judge determined the FTC's case now offers facts that are "more robust and detailed than before" — allowing the agency to continue its case against the <keyword id="6358815" type="UNKNOWN" weightage="60" keywordseo="tech" source="Orion">tech</keyword> giant.</li></ul><p><a href="https://www.reuters.com/legal/litigation/us-judge-rejects-facebook-request-dismiss-ftc-antitrust-lawsuit-2022-01-11/">Here's what you should know about the lawsuit. </a></p><hr /><p><u><strong>In other news:</strong></u></p><p><a href="https://www.businessinsider.com/amazon-faces-second-union-vote-bessemer-alabama-warehouse-workers-nlrb-2022-1"></a></p><div type="image" title="clerk at amazon prime warehouse" height="4000" width="5333" msid="88855898" hostid="261"></div><p><strong>2. Amazon faces a second union vote next month.</strong> After the NLRB determined the company interfered with the first election, 6,000 workers at Amazon's Bessemer, Alabama warehouse will be able to vote again. Voting will begin on Feb. 4. <a href="https://www.businessinsider.com/amazon-faces-second-union-vote-bessemer-alabama-warehouse-workers-nlrb-2022-1">More on that here.</a></p><p><strong>3. Elizabeth Holmes' conviction casts a shadow on female health startup founders. </strong>After the Theranos founder's conviction on four counts of fraud, female founders are facing questions about her case during investment meetings. <a href="https://www.businessinsider.com/female-health-startup-founders-response-elizabeth-holmes-theranos-2022-1">Founders explain how such high-profile fraud cases "make it harder for us."</a></p><p><strong>4. Facebook will require COVID-19 vaccine boosters. </strong>All of Facebook's in-person employees must receive a booster by late March, making it one of the largest companies to implement such a requirement. Plus, the company has delayed its reopening until March. <a href="https://www.businessinsider.com/facebook-require-covid-19-boosters-for-all-in-person-employees-2022-1">See the company's latest COVID-19 protocols.</a></p><p><strong>5. Reef is closing about one-third of its ghost kitchens. </strong>Leaked documents reveal the startup is temporarily closing 95 of its underperforming food trailers, though they didn't say when the trailers would reopen. <a href="https://www.businessinsider.com/reef-ghost-kitchens-abruptly-closes-nearly-100-locations-2022-1">More on the decision.</a></p><p><strong>6. Web3 startups are poaching staff from some of tech's biggest names in the US. </strong>Now, the same trend is about to kick off in Europe as the prospect of a decentralized internet and inflated pay packages lure staff away. <a href="https://www.businessinsider.com/web3-projects-europe-starting-lure-staff-from-big-tech-firms-2022-1">Here's why tech talent is defecting to Web3.</a></p><p><strong>7. AWS plans to "completely re-imagine" how its network is managed. </strong>According to a new job posting, Amazon Web Services is searching for someone to rework how its network is managed with new control plane services — a project the company expects <a href="https://www.businessinsider.com/amazon-web-services-new-project-reimagine-network-job-posting-2022-1">will be critical to "Amazon as a whole."</a></p><p><strong>8. Video game developers weigh in on unrealistic metaverse expectations.</strong> Many metaverse aficionados are anticipating a future where users can seamlessly take things — like costumes purchased for avatars — from one video game to another. But game makers are warning that it won't be that simple. <a href="https://www.businessinsider.com/video-game-makers-explain-why-main-metaverse-promise-is-false-2022-1">They explain why that's an unrealistic fantasy.</a></p><p><strong>9. A former Google CEO paid $65 million for a vacant lot in Beverly Hills. </strong>Eric Schmidt purchased the "Enchanted Hill," a vacant site that once belonged to Microsoft's Paul Allen. Spanning 120 acres, the property has room for multiple guest houses, a sports complex, and luxury facilities like a winery. <a href="https://www.businessinsider.com/paul-allen-beverly-hills-property-for-sale-photos-2019-10">Take a look at the lot.</a></p><p><strong>10. Chevy's Silverado EV vs. Ford's F-150 Lightning.</strong> We compared the two electric pickups to see which one reigns supreme, and found the Silverado EV beats the F-150 Lightning in range, power and price — but only slightly. <a href="https://www.businessinsider.com/ford-electric-f150-lightning-vs-chevy-silverado-ev-range-price-2022-1">See how the trucks stack up.</a></p><hr /><p><u><strong>What we're watching today:</strong></u></p><ul><li>Micromobility World, a virtual summit exploring how small vehicles <a href="https://micromobility.io/mmworld">can improve the world</a>, takes place today. </li><li>Justworks is expected to announce final IPO pricing. </li><li>It's Jeff Bezos' birthday, and Amazon workers and activists are expected to call on Amazon to recognize unions. </li></ul><hr /><p><strong>Event invite: </strong>Join Insider for our live webinar, <a href="https://www.businessinsider.com/how-marketers-are-preparing-for-the-metaverse-2021-12">"Marketing in the Metaverse,"</a> taking place on Jan. 18 at 11 a.m. EST. <a href="https://www.businessinsider.com/how-marketers-are-preparing-for-the-metaverse-2021-12">Register here.</a></p><hr /><p><em>Curated by Jordan Parker Erb in New York. (Feedback or tips? Email </em><a href="mailto:jerb@insider.com"><em>jerb@insider.com</em></a><em> or tweet </em><a href="https://twitter.com/jordanparkererb?lang=en"><em>@jordanparkererb</em></a><em>.) Edited by </em><em>Michael Cogley </em><em>in London.</em></p>

10 things in tech you need to know today

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5594287f6da8111f5251e624-1000-1000/isaac-oates.jpg" border="0" alt="isaac oates justworks"><p class="source"><span>Courtesy of Justworks</span></p><p class="caption">Justworks CEO and founder Isaac Oates. </p></img></div><p></p></div></div>Isaac Oates manages a team of 42 people at <a href="http://www.justworks.com/">Justworks</a>, an HR and payroll management startup that he founded in 2012.</p><p>Justworks wants to take the pain out of starting a business by making it easy to get employees enrolled in a benefits plan. </p><p>Oates is pretty familiar with operations: He spent 12 years in the Army Reserve, enlisting with the help of a parent's note at the ripe young age of 17.</p><p>"The army has a certain style of leadership that people find attractive," Oates said. "Anyone who knows me well knows that I like doing things in a very clear, specific way. Also, treating people like family is important to me." </p><p>He did ROTC during college and became an officer upon graduation.</p><p>He soon got a full-time software engineering job at Amazon, but he continued to take <span style="line-height: 1.5em;">weekend shifts with the National Guard and Army Reserve. </span><span style="line-height: 1.5em;">He also worked on counterterrorism analysis and commanded his own team.</span></p><p>"It kind of became a hobby while I was working full-time," Oates told Business Insider. "Those are really useful skills for any job." </p><p>He ended up having two separate stints at Amazon between 2002 and 2009: nearly three years as a software engineer, then, after a short break for business school, a year and a half as a product manager. <span style="line-height: 1.5em;">He worked with the National Guard for that entire stretch of time, though he did have to take a six month-leave from Amazon during officer training.</span></p><p><span style="line-height: 1.5em;">Amazon had a similar focus and rigor to the army. Oates described the Amazon experience </span><a href="http://blog.justworks.com/just-a-note-isaac-oates">in a blog post</a><span style="line-height: 1.5em;"> that was shared widely earlier this year: </span></p><blockquote class="blockquote"><p><span style="line-height: 1.5em;">When you go to a meeting with Jeff Bezos at Amazon, you spend time preparing a document. It could be called a narrative, a 1-pager, or something else - the name doesn't really matter. The document is an articulation of what you are trying to accomplish and your understanding of what it will take to get there. The document is long, thorough, and written in prose.</span></p><p>When you present to Jeff for an hour, you spend the first 20 minutes while he reads your narrative, making notes in the margins. Everyone else waits. It sounds like a waste of time, except that the following 40 minutes is pure gold. For 40 minutes, you have a strategic discussion where everyone in the room is on the same page, has the same context and access to detail.</p><p>I believe that those meetings, along with Jeff's intellect, are Amazon's true competitive advantage. They think better than their competition. Great decision-making and execution follow.</p></blockquote><h2><span style="line-height: 1.5em;">Into the startup world</span></h2><p><span style="line-height: 1.5em;">Oates left Amazon in 2008 and started his own company, an ad platform called Adtuitive. </span><span style="line-height: 1.5em;">The five-person startup was acquired by Etsy in 2009. </span></p><p><span style="line-height: 1.5em;">The difficult experience of getting Adtuitive off the ground would serve as inspiration for Oates' current project: Justworks. </span></p><p>"When we were trying to set up health care for our employees, we found that it was really complicated, and all of the forms and laws for benefits were different in other states," Oates said. "We just kept thinking, 'How do we make this better?'" </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5595675669beddfa1a7caa20-1200-924/justworks.jpg" border="0" alt="justworks"><p class="source"><span>Courtesy of Justworks</span></p></img></div><p></p></div></div></p><p>To set up benefits through Justworks, a business owner only needs to set up an account and invite employees to the system. Employees then choose from various benefits packages. Everything from medical insurance and payroll to commuter benefits and 401(k) accounts can be managed through Justworks. <span style="line-height: 1.5em;">Casper, Trello, and Ringly are among the startups who have signed on to use the service.</span></p><p>"The product definitely appeals to companies that are run by younger people," Oates said. "We also work with lots of agencies and creative people, as well as some doctors and dentists." </p><p>Oates' experiences definitely influence how he runs Justworks today. As he wrote about his time at Amazon:</p><p style="padding-left: 30px;">To this day, I avoid laptops in meetings and encourage presenters to participate as best they can. It's tough. There's a lot of pressure to be online and available all the time, much more so even than in 2009. I'm hopeful that by creating a place where distractions like email, social media, and Google can be avoided, I can get my team's best thinking.</p><p><span style="line-height: 1.5em;">Justworks <a href="https://www.crunchbase.com/organization/justworks">has raised $20 million</a> in venture funding to date. Their most recent round was a $13 million Series B led by Bain Capital Ventures. Earlier investors Thrive Capital and Index Ventures also contributed to the round. </span></p><p class="tagline">Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/gen-mcchrystal-on-leadership-and-advice-for-20-year-old-self-2015-7">Retired Gen. Stanley McChrystal on leadership and advice for his 20-year-old self</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="lsMzN5dTokIoy3EsX8PsntOoctXBgJLx" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'lsMzN5dTokIoy3EsX8PsntOoctXBgJLx',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

This founder used to split his time between Amazon and the army, and it shows

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd"><html><body><p><div class="KonaFilter image-container display-table float_right"><div><div class="image"><a href="http://www.justworks.com/?utm_source=business_insider&amp;utm_medium=sponsored_post&amp;utm_campaign=33-startups-get-fined-april" target="_blank"><img src="https://static-ssl.businessinsider.com/image/55196ebb6bb3f72154bf9822-1200-924/young-girl-doing-taxes.jpg" border="0" alt="Young girl doing taxes" /></a></div></div></div>Running a business is stressful enough. But on top of that, one-third of all small-business owners get slapped with payroll penalties every year.</p><p>The main problem is that many of them do their payroll manually. 46% don't have an accountant, according to a survey from GoDaddy, and that means they don't always comply with all the various local, state, and <a href="http://blog.justworks.com/federal-requirements-for-setting-up-payroll-in-a-new-business" target="_blank">federal requirements</a>.</p><p>Unfortunately, it's <a href="http://www.nsba.biz/wp-content/uploads/2014/04/NSBA-Tax-Survey-2014.pdf" target="_blank">costing them</a>. In fact, the IRS issued a staggering total of $4.5 billion in penalties to US businesses in 2013 - all because of payroll errors.</p><p>It's easy to see how mistakes are made. For starters, there are more than 15,000 tax codes in the US, many of which change frequently. Tax regulations, such as overtime, vary from state to state. Companies need to factor in variable salaries, commissions, and performance-based bonuses. And taxes need to be filed with different authorities, all of which have their own deadlines.</p><p>So how do you protect your business from payroll fines? Most importantly, don't try to handle payroll on your own. Instead, hire an accountant or outsource payroll to a specialist like <a href="http://www.justworks.com/?utm_source=business_insider&amp;utm_medium=sponsored_post&amp;utm_campaign=33-startups-get-fined-april" target="_blank">Justworks</a>, a New York-based startup that manages payroll, benefits, and compliance for a range of companies across the tech, legal, and financial sectors. (It also offers extremely competitive medical insurance rates in New York City.)</p><p>Through Justworks, you can hire employees across multiple states without needing to register for state or local withholding tax. If you are fined for a compliance issue, Justworks will cover the fine. </p><p>In addition to avoiding penalties, another huge advantage of using a payroll specialist like Justworks - and its streamlined, easy-to-use platform - is saving time, which is crucial if you're trying to grow your business. Qubit, a customer of Justworks, actually <a href="http://cdn2.hubspot.net/hub/438036/file-2628419017-pdf/blog-files/QubitCaseStudy.pdf?t=1428010323964?utm_source=business_insider&amp;utm_medium=sponsored_post&amp;utm_campaign=33-startups-get-fined-april" target="_blank">reduced its time spent on payroll by 75%</a>.</p><p>Generally speaking, successful business owners recognize their weaknesses and know when to ask for help. They tend to focus on the big picture and leave the nitty gritty, like taxes and payroll, to those with the time and expertise to take care of them.</p><p><strong><a href="http://www.justworks.com/?utm_source=business_insider&amp;utm_medium=sponsored_post&amp;utm_campaign=33-startups-get-fined-april" target="_blank">Sign up for a free demo of Justworks and save 20% off your first year with the code "Insider."</a><br /></strong></p><p><em>This post is sponsored by <a href="http://www.justworks.com/?utm_source=business_insider&amp;utm_medium=sponsored_post&amp;utm_campaign=33-startups-get-fined-april" target="_blank">Justworks</a>.</em></p><p>Find out <a href="http://www.businessinsider.com/sponsor-posts">more about Sponsored Content</a>.</p></body></html><p class="tagline"><strong>Follow BI Studios on <a href="https://twitter.com/bi_studios_" target="_blank">Twitter</a> and <a href="https://www.facebook.com/BusinessInsiderStudios" target="_blank">Facebook</a>.</strong></p>

33% of startups get fined for the same reason

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d5ecf65cd97842d4b5744dd-927/office-coworkers-listening-thinking.jpg" border="0" alt="office coworkers listening thinking" data-mce-source="Jacob Lund/Shutterstock.com" /><p class="source"><span>Jacob Lund/Shutterstock.com</span></p><p class="caption">No matter the size of your company, certain laws apply when considering laying someone off.</p></div><p></p></div></div></p><ul class="summary-list"><li>Firing someone when you're a founder of a company and manage a very small team - oftentimes without any HR support - can be tricky.</li><li>We asked several industry leaders, including Perch co-founder Phil DeGisi, an HR expert, and an employment attorney, the best way to handle terminating an employee.</li><li>Besides getting familiar with the legal landscape around letting an employee go, you should try to keep the conversation neutral and focus on the person's past performance rather than their "culture fit."</li><li>It can also be helpful to seek out help, whether from a professional employment organization, a consultant, or your board or investors.</li><li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories.</a></li></ul><p>Some months ago, <a href="https://perch.com/">Perch</a> co-founder Phil DeGisi was hiring for a new position pivotal to his company's growth. Without a head of people on staff, he fielded as many as 20 interviews himself before settling on a final candidate. </p><p>But when it became clear that the new hire wasn't meeting expectations, DeGisi scheduled a meeting to review the person's performance goals and talk about how they could reach those goals within the next 45 days. </p><p>"You want to see the person be successful," says DeGisi. "If you're going to give someone the opportunity to improve you have to believe they can." In this case, things didn't improve. After running the decision by outside counsel, DeGisi determined the best course of action was to let the employee go. </p><p>When you're a small shop working without full-time HR support or formalized reporting structures, parting ways with a team member comes with a unique set of challenges. Business Insider spoke with industry experts about best practices around firing an employee on a small team, and how to avoid landmines while shaping your expanding workforce. </p><h1>Seek help to manage your HR responsibilities.</h1><p>"Small businesses often don't know what they don't know," says Moses Balian, the manager of HR consulting at <a href="https://justworks.com/features">JustWorks</a>, a platform that helps employers manage payroll, benefits, and other administrative needs. For that reason, ideally "you should engage some degree of human resources support as soon as you start to run payroll," he adds. This might mean working with a professional employment organization (PEO) like JustWorks, ADP, or TriNet, which can typically cost between $500 and $1,500 per employee per year, depending on the size of your business and the support resources you require. </p><p>Or, you might consider hiring a small business or startup consultant, who can institute things such as regular reviews and performance documentation to help you objectively evaluate employees' contributions over time. Expert consultants can also help companies develop offer letters and contracts that clearly stipulate the terms of employment, a factor that smoothens the departure if eventually an employee is being shown the door. </p><p>If leaning on outside HR resources isn't an option at the moment, it can be helpful to turn to your board or talk to investors or other experienced counsel who can help coach you through the situation. </p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d5ef46146552c3f355e8148-1179/polly rodriguezf 7.jpg" border="0" alt="Polly Rodriguez headshot" data-mce-source="Courtesy of Polly Rodriguez" data-mce-caption="Polly Rodriguez." /><p class="source"><span>Courtesy of Polly Rodriguez</span></p><p class="caption">Polly Rodriguez.</p></div><p></p></div></div></p><p>Polly Rodriguez, a co-founder at the sexual wellness startup Unbound Babes, has leaned on advisors to make hiring and firing decisions in the past. She recalls texting with one of them when an employee was tipped off to a termination scheduled to take place on a Monday morning. "She said: 'You should never let a weekend go by if someone knows they're being fired,'" Rodriguez recalls. The conversation was rescheduled for that Sunday.</p><p>Beyond advisors, Rodriguez also counts fellow founders among her cadre of consultants: "You've got to find people outside your office and team to vent to." </p><h1>Get to know the legal landscape in your state.</h1><p>"In 49 states and Washington, DC, employment is 'at will,' and you can terminate at any time with or without notice," Balian says. Montana is the only outlier, where employers must demonstrate that they have "good cause" to fire an employee. ("Good cause" usually means that the decision is based on one or several incidences of poor performance or workplace etiquette - examples include a hostile or rude email to a client, sexual harassment, or grossly misquoting the budget for a client project.) </p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d5f089badbcf83e0c0df658-1521/moses-balian-justworks.jpg" border="0" alt="Moses Balian Justworks headshot" data-mce-source="Courtesy of Moses Balian" data-mce-caption="Moses Balian." /><p class="source"><span>Courtesy of Moses Balian</span></p><p class="caption">Moses Balian.</p></div><p></p></div></div></p><p>It's essential to <a href="https://www.dol.gov/whd/state/state.htm">understand the employment laws</a> that apply to the state where you're operating, no matter if you're a company of five or 500. For example, says Balian, "A handful of states require [a company] to hand an employee paperwork before they leave."</p><h1>Develop and document review processes to protect yourself.</h1><p>In an at-will environment, explains <a href="https://www.outtengolden.com/lawyer-attorney/wendi-s-lazar">Wendi Lazar</a>, a partner at employment law firm Outten and Golden in NYC, you can fire anyone for any reason, so long as that reason isn't discriminatory. </p><p>So being able to demonstrate why an employee is being let go with clear, consistent documentation can help shield employers from allegations of discrimination. "It's very important to be consistent when doling out performance reviews, metrics, and rewards," says Lazar. "You can't cherry pick who gets reviewed and what criteria for success that review captures."</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57042b9c910584155c8bab9b-1500/phil_cropped (3).jpg" border="0" alt="Phil DeGisi" data-mce-source="Phil DeGisi" /><p class="source"><span>Phil DeGisi</span></p><p class="caption">Phil DeGisi.</p></div><p></p></div></div></p><p>On top of that, says Perch's DeGisi: "If it's a performance-related firing, it should never be a surprise to the person walking into the room. If it is, you have failed as a manager." Regular reviews and check-ins serve as an opportunity to get on the same page. "No one should go six months and think they're doing just fine and then get put on a performance improvement work plan for 30 days - that's just not right," he goes on. "That's why it's very important that people are getting feedback so they know either 'yes I am delivering and doing well' or 'no, I am not.'"</p><p>Balian says that reviews should be done at least quarterly. And in the event that you do need to let someone go, the upshot is that you'll have a paper trail that backs up the decision to pursue termination. </p><h1>Understand statutory laws to reframe your feedback.</h1><p>"No matter where you work, if you are an employee, you have statutory protections through federal, state, and local laws," says Lazar. Protected classes - race, gender, sexual orientation, among other categories - are defined at both <a href="https://www.eeoc.gov/laws/types/">federal</a> and <a href="http://www.ncsl.org/research/labor-and-employment/discrimination-employment.aspx">state</a> levels; they also may vary by local jurisdiction.</p><p>"You have to be very careful these days about what you say in terms of someone's physical appearance, as well as the reasons they're not performing," Lazar says. It's also important to be consistent. "If you treat 10 workers one way but you treat that one woman, or that one man, or that one pregnant worker, or that one older worker differently, that's going to open you up to liability," she adds.  </p><h1>And watch your language - even if it's well-intended.</h1><p>A termination conversation is, in many ways, not a conversation at all: The subject matter is not up for debate, and you never want to leave yourself open to rebuttals. </p><p>That means avoiding phrases like, "You're so great, I'm really sorry we have to let you go" or "I wish we didn't have to do this." Even when you feel that way, it muddies the reasons for termination. "The employee is left to wonder: If you wish you didn't have to do this, then on what basis are you making the decision?" explains Balian.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d5ef4f723f19c3ade164fa1-2400/wendi-lazar-color.jpg" border="0" alt="wendi lazar headshot" data-mce-source="Courtesy of Wendi Lazar" data-mce-caption="Wendi Lazar." /><p class="source"><span>Courtesy of Wendi Lazar</span></p><p class="caption">Wendi Lazar.</p></div><p></p></div></div></p><p>That question could potentially open the door to a wrongful discharge claim. Comments about "culture fit" or self-presentation are also a no-go zone, says Lazar. </p><p>The bottom line? Refrain from expressing regret or remorse and mentioning non-performance-related specifics. "It can sound cold, but the best practice is to stick to the facts," says Balian. For example, you could start by saying:  "The decision has been made to terminate your employment with the organization."</p><p>At the same time, he says, "Employment law doesn't leave a whole lot of room for empathy, but there is room for dignity, and you can always express gratitude." When circumstances allow it, telling the person that their work and presence has been appreciated is absolutely fine, as is giving them flexibility about how they would like to leave or pack up their desk. "Make sure [you] maintain eye contact, maybe shake their hand - there's a lot of room to re-emphasize the culture when it comes to termination. Offboarding is super important," Balian adds. </p><p>One easy way to show your appreciation is to simply say: "Thank you for your service to the company" Balian explains: "After all, they gave the business their most valuable asset - their time!"</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/taylor-swift-net-worth-singer-millionaire-makes-spends-money-wealth-2019-4">Taylor Swift is dropping a new album. Here's how the world's highest-paid celebrity makes and spends her $360 million.</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/xPKNAYF8-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

How to handle letting an employee go when you're the founder of a small startup - while keeping everyone's dignity intact

<img src="https://static-ssl.businessinsider.com/image/5e960a1bdcd88c09fb294799-1468/gettyimages-1212953197.jpg" alt="small business owner restaurant" /><ul class="summary-list"><li><strong>Two tax provisions of the <a href="https://www.businessinsider.com/forgivable-loans-avoid-layoffs-coronavirus-cares-paycheck-protection-economic-injury-2020-3">$2 trillion stimulus package</a> could put cash back into small business owners' pockets almost immediately. </strong></li><li><strong>Most businesses will be eligible to defer payroll taxes and receive tax credits for keeping employees.</strong></li><li><strong>However, businesses may <a href="https://www.businessinsider.com/coronavirus-stimulus-loan-tax-relief-loans-tax-better-your-business-2020-3">not be eligible for tax relief if they receive a forgiveable loan</a> through the Paycheck Protection Program.</strong></li><li><strong>To understand how business owners can take advantage of these programs Business Insider reviewed IRS guidelines and spoke with a small business advisor at Wiss &amp; Co. accounting firm. </strong></li><li><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime content.</a></strong></li></ul><p>Businesses that have been forced to close, limit operations, and lay off employees during the coronavirus pandemic have several lifelines available to them, two of which are tax-related and could put cash back in their pockets almost immediately. </p><p>Rather than waiting to be approved for emergency loans and grants, most businesses will be eligible to defer payroll taxes and receive tax credits for keeping employees on payroll. These provisions are part of the $2 trillion stimulus package the US government signed into law to assuage the economic fallout from COVID-19. </p><p>Designed for private businesses of all sizes, the tax provisions could especially benefit small businesses that have difficulty getting SBA loans.</p><p>For example, many <a href="https://www.businessinsider.com/how-venture-backed-startups-can-apply-coronavirus-relief-loans-grants-2020-4">venture-backed startups won't be able to access emergency loans</a> and grants from the federal government because the SBA's affiliation rule ties them to other companies and thus increases their employee count. But startups would still be eligible for tax deferment and credits through the IRS. </p><p>Business Insider reviewed IRS guidelines and spoke with Travis Miskowitz, a small business and CFO advisor at Wiss &amp; Co. accounting firm, to understand how these programs work. </p><p>Here's everything you need to know about getting tax deferment and credits to help your business maintain payroll and increase cash flow. </p><h2><strong>Payroll-tax deferment</strong></h2><p>Employers will not need to pay Social Security payroll taxes this calendar year. Instead, they'll pay 50% by the end of 2021 and the other 50% by the end of 2022. As reported by <a href="https://www.cnbc.com/2020/03/25/companies-may-get-payroll-tax-relief-under-coronavirus-stimulus-bill.html">CNBC</a>, the IRS will continue to collect worker's share through paycheck withholding. </p><p>This provision is meant to free up cash flow during the current crisis, but those payments aren't going away. Keep in mind that 2020's taxes will be due in addition to full tax payments for the next two years, so you'll essentially have to pay a total of 1.5 times your normal taxes each year. Begin planning and saving for those larger payments as soon as possible so they don't sneak up on you. </p><p><strong>How much money:</strong> By not paying payroll taxes this year, a business could retain 6.2% of employee wages. </p><p><strong>Eligibility:</strong> As long as you do not have a loan forgiven under the Paycheck Protection Program, you are eligible for payroll-tax deferral. You can participate in both programs, however you must resume tax payment as soon as your lender deems your loan forgiven. <a href="https://www.businessinsider.com/coronavirus-stimulus-loan-tax-relief-loans-tax-better-your-business-2020-3">Here's how to decide which option is the best for your business.</a></p><p><strong>How to get it:</strong> There's no application process since it's essentially an extension on your 2020 tax-payment deadline. However, Miskowitz said businesses might have to remit those taxes to the IRS on their own and not through their payroll provider. He advises business owners to document everything and keep track of the filing deadlines. </p><p>However, some payroll companies have already added tax deferral into their systems. A representative for Justworks told Business Insider that its Social Security tax-deferral tool has returned more than $454,000 in working capital to small businesses which can be used to pay employees as early as their next payroll cycle. </p><h2><strong>Employee-retention credit</strong></h2><p>Businesses can receive a 50% refundable tax credit on employee wages after March 12, 2020 and before January 1, 2020. These taxes include federal income tax withholding, the employee's share of Social Security and Medicare taxes, and the employer's share of Social Security and Medicare taxes. </p><p>"That's designed with the intention to encourage employers to keep most of their employees on payroll to the extent that they can," Miskowitz said. But since the benefits are based on the number of employees you have, he said it most benefits companies with 100 or fewer employees.</p><p><strong>How much money: </strong>Your total tax credit will depend on your average employee count in 2019. </p><p>Companies with 100 or fewer employees will calculate the wages and health care costs paid to any employee during economic hardship, whether or not they are providing services. </p><p>Companies with more than 100 full-time employees will calculate the wages and health care costs that would have been paid to employees who are not working, up to 30 days immediately after the period of economic hardship. </p><p>All employers can receive no more than $10,000 per employee. </p><p><strong>Eligibility: </strong>Your business is eligible if you've been forced to partially or fully suspend operations or if you've seen a significant drop in revenue during the pandemic. However, your business is not eligible if you receive a loan through the Paycheck Protection Program. </p><p>Miskowitz said that a business must see at least a 50% decline in revenues compared to the equivalent quarter of the prior year - which could mean some companies won't benefit right away. "They may not have experienced that 50% decline in the first quarter, but they'll most certainly experience that 50% decline in the second quarter," he said. </p><p><strong>How to get it: </strong>To claim the credit, employers will need to report their total qualified wages and health insurance costs on their quarterly employment tax returns, starting with the second quarter of 2020. Most companies will use IRS form 941. </p><p>Your business can get immediate access to the credit by retaining your anticipated amount, minus any deposits your company is receiving for <a href="https://www.businessinsider.com/coronavirus-paid-leave-bill-hr6201-means-employees-businesses-2020-3">paid sick and family leave credit</a> through the Families First Coronavirus Response Act (FFCRA). If your employment tax deposits do not cover the credit in full, the IRS may send an advance payment. </p><p>"If they are eligible for an advance payment, essentially a refund of any already paid payroll taxes, they can complete form 7200," Miskowitz said. "The IRS will send them a direct deposit for the amount of that advanced payment if they're eligible."</p><p><em>Editor's note: A previous version of this article stated that a business may not participate in both the Paycheck Protection Program and defer payroll taxes. It has been updated to reflect that businesses may participate in both programs, however a business must resume paying taxes once their PPP loan is forgiven. </em></p>

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