1099 employees
A "1099 employee" is not a recognized classification under U.S. labor law. Instead, the term "1099 employee" is often a misnomer that refers to individuals who are classified as independent contractors for tax purposes.
Independent contractors are self-employed individuals who provide services to businesses or clients. They are not considered employees, so they do not receive a W-2 form at the end of the year. Instead, they may receive a Form 1099-NEC (Nonemployee Compensation) or Form 1099-MISC, which reports their earnings to the IRS.
Differences between full-time employees and independent contractors
Full-time employees maintain a formal employment relationship with an employer. In contrast, independent contractors function as self-employed individuals or businesses within a contractual work arrangement.
When it comes to tax responsibilities, full-time employees have their income taxes, social security, and medicare taxes withheld by their employers. Independent contractors, on the other hand, shoulder the responsibility for paying their own income taxes, including self-employment taxes.
Full-time employees enjoy eligibility for a range of employer-provided benefits, including health insurance and retirement plans. In contrast, independent contractors don’t receive these traditional employee benefits from clients or businesses.
Regarding legal protections, full-time employees benefit from labor laws that grant them rights such as minimum wage and overtime pay. Independent Contractors have fewer legal protections under labor laws compared to employees.
Full-time employees often operate within the parameters of their employer's control regarding work hours, tasks, and conditions, while independent contractors maintain a higher level of autonomy and control over their work methods and schedules.
Paid time off, such as vacation and sick leave, is typically offered to full-time employees as part of their compensation package. At the same time, independent contractors don’t have entitlement to employer-provided paid time off.
While employers may make contributions to retirement accounts or offer financial incentives for full-time employees, independent contractors typically handle their own business expenses, which may be deductible for tax purposes.
What are the common 1099 jobs?
Some common types of jobs where you might encounter Form 1099 income include freelance writing, consulting (in various fields, including management, finance, marketing, and IT), graphic design, photography, web development, digital marketing, real estate agents, contractors and construction workers, delivery and rideshare drivers (drivers for services like Uber or Lyft are considered independent contractors and receive income reported on Form 1099-NEC or 1099-K), fitness instructors, event planning, IT and tech services, healthcare professionals, musicians and performers, and online content creators (Youtubers) among others.
Why should you hire a 1099 employee?
Hiring a 1099 employee, or an independent contractor, can offer several advantages for employers. For example, this approach can save costs, as employers don’t have to provide independent contractors with employee benefits, such as health insurance, retirement contributions, or paid time off.
1099 employees are also great for short-term tasks or specialist roles, as hiring one doesn’t create a long-term employment relationship. Once the project or contract is completed, the business isn’t obligated to provide ongoing work or benefits.
Independent contractors are also easier to hire from abroad, as they can be located anywhere, allowing businesses to tap into a global pool of talent without the need for physical relocation or geographical constraints.
Paperwork for independent contractors
Hiring independent contractors in the United States involves specific paperwork and documentation to establish the working relationship, outline terms, and ensure compliance with tax and legal requirements. These are key documents you will have to fill out to work with the 1099 employee in the US.
Independent contractor agreement. It outlines the terms and conditions of the working relationship between the business and the independent contractor. The agreement should specify project details, compensation, payment terms, deadlines, and any other relevant terms. It often includes clauses addressing confidentiality, non-compete agreements, and intellectual property rights.
W-9 Form. Before payment can be made to an independent contractor, the business requires the contractor to complete a Form W-9. The completed W-9 is used to report payments to the IRS.
Certificate of Insurance (COI). Depending on the nature of the work, businesses may request a Certificate of Insurance from the independent contractor. This document demonstrates that the contractor carries liability insurance, which can help protect both parties in case of accidents or damage during the project.
Invoice. Independent contractors provide invoices to bill clients for their services. Invoices typically include the contractor's contact information, a description of the services rendered, the agreed-upon rate or fee, the total amount due, payment instructions, and payment terms.
Receipts and expense reports. These records may include receipts for materials, supplies, equipment, travel, and other expenses that may be deductible for tax purposes.
1099-MISC or 1099-NEC. If the independent contractor earns $600 or more in a tax year from a single client or business, the client is required to report these payments to the IRS using either a Form 1099-MISC (for miscellaneous income) or a Form 1099-NEC (for nonemployee compensation).
If this sounds too difficult for you or you want to hire an independent contractor from abroad (which means a bunch of other documents), consider getting help from MWDN. We will hire the best tech talent for you and take care of all the legal and tax paperwork.
Agent of Record (AOR)
An Agent of Record is a designated individual or entity given the authority to represent and manage specific aspects of a client's interests, typically in insurance or advertising sectors. Essentially, the AOR acts as the intermediary, liaising between the client and third-party providers like insurers or media outlets.
AOR in different sectors
While AORs are prominent in the insurance world, where they manage policy placements and renewals, they're also pivotal in the advertising sector. Here, an advertising agency, as the AOR, manages a brand's media purchases, placements, and overall advertising strategy, ensuring consistency and optimal impact.
Key functions of an AOR
Representation. The AOR stands as the primary contact between a client and third-party providers. All communications, negotiations, and transactions are funneled through the AOR.
Administration. From handling paperwork to ensuring timely renewals and compliance, the AOR manages administrative tasks, allowing clients to focus on core business activities.
Expertise. Given their specialized knowledge, AORs offer strategic insights and advice, ensuring clients get the best deals, coverage, or placements.
Negotiation. The AOR can leverage its relationships and understanding of the industry to negotiate favorable terms for clients.
When to reconsider your AOR?
At some point, you might need to sign an AOR or broker of record (BOR) letter, especially in the following situations.
You appoint your first-ever AOR or broker.
You switch your current broker due to high premiums or inadequate service.
You seek a more proactive AOR.
You’re dissatisfied with the current agent's service.
There’s a communication gap with your existing AOR.
You discover an agency with more expertise tailored to your sector.
For instance, if you're in the tech industry and discover an agent specializing in cybersecurity and dedicated tech services, switching might be beneficial.
More about AOR letter
Clients retain the freedom to change their AOR, reflecting shifts in their strategic needs or dissatisfaction with current services. Such a switch often involves an official letter detailing the transition and ensuring that all parties are on the same page.
An AOR letter is an official declaration made by the business owner, designating their chosen representative for insurance matters. It authorizes this agent to negotiate terms, manage policies, and oversee other insurance-related tasks on behalf of the company. Importantly, when a new AOR letter is signed, it typically ends the association with the previous agent.
Key points before signing an AOR letter
While appointing a new AOR is straightforward, careful consideration of the agreement is crucial. Key points to remember are:
Signing a new AOR means ending the relationship with your current agent.
Be vigilant; brokers might not always be upfront about certain terms.
Understand potential servicing fees, especially if you change AORs mid-term.
The AOR transition process
The procedure to appoint a new AOR typically spans around ten days:
The proposed agent drafts an AOR letter mentioning the necessary details.
You, the policyholder, review, sign, and return the letter.
The agent forwards the signed AOR to the insurance provider.
The transition is finalized in approximately 5-10 days, barring any interventions.
Upon the insurance company's approval of the AOR letter, the old agent's involvement concludes, and the new association begins.
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An AOR offers a streamlined, expert-backed approach to managing your interests. Businesses keen on maximizing outcomes and minimizing hassles would do well to leverage the power of a dedicated AOR.
Agile methodology
Agile methodology is a set of principles and practices for software development and project management that emphasizes flexibility, collaboration, customer-centricity, and iterative progress. Agile methodologies are designed to address the challenges of traditional, linear project management approaches and are particularly well-suited for complex and rapidly changing environments.
Key characteristics of Agile methodology
Iterative and incremental development. Agile projects are broken down into small, manageable increments or iterations. Each iteration results in a potentially shippable product increment, allowing for continuous improvement and adaptation.
Customer-centricity. Customers or stakeholders are involved throughout the development process, ensuring that the product meets their evolving needs and expectations.
Cross-functional teams. Agile teams are typically cross-functional, composed of individuals with a range of skills necessary to complete the project.
Adaptability. Agile teams are adaptable and open to changing requirements, even late in the development process. This flexibility allows for adjustments in response to shifting priorities or emerging insights.
Frequent deliveries. Agile teams aim to deliver value in short cycles, often in two- to four-week iterations known as sprints.
Continuous feedback. Regular feedback loops, such as daily stand-up meetings and sprint reviews, help teams identify issues, address challenges, and make real-time improvements.
Transparency. Agile promotes transparency in all aspects of the project, ensuring that everyone involved has access to relevant information, progress updates, and decision-making processes.
Self-organizing teams. Agile teams are empowered to make decisions and organize their work. This autonomy fosters a sense of ownership and responsibility.
Prioritization. Agile methodologies use techniques like user stories and product backlogs to prioritize work based on customer value and business impact.
What is the Agile Manifesto?
The Agile Manifesto is a foundational document that outlines the core values and principles of Agile software development. It was created by a group of software developers and thought leaders who gathered at the Snowbird ski resort in Utah in February 2001. The Agile Manifesto responded to the need for a more flexible and customer-centric approach to software development, moving away from traditional, rigid methodologies. It consists of four key values and twelve principles.
Agile Manifesto values
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
Agile Manifesto principles
Satisfy the customer through early and continuous delivery of valuable software.
Welcome changing requirements, even late in development.
Deliver working software frequently, with a preference for shorter timescales.
Collaborate with customers and stakeholders throughout the project.
Build projects around motivated individuals and give them the environment and support they need, and trust them to get the job done.
Use face-to-face communication as much as possible.
Working software is the primary measure of progress.
Maintain a sustainable pace for the team and promote work-life balance.
Strive for technical excellence and good design.
Keep things simple and focus on what adds value.
Allow self-organizing teams to make decisions and adapt to changing circumstances.
Reflect at regular intervals on how to become more effective and adjust behavior accordingly.
Agile frameworks
Common Agile frameworks and methodologies include Scrum, Kanban, Extreme Programming (XP), and Lean, among others. These frameworks provide specific guidelines and practices for implementing Agile principles in various contexts. Let’s take a look at the most popular frameworks.
Scrum is one of the most widely adopted Agile frameworks, basically, it’s an epitome of Agile. It emphasizes iterative development in sprints, while Scrum teams hold daily stand-up meetings, maintain a prioritized backlog of work items, and conduct regular sprint reviews and retrospectives.
Kanban is a visual management system that focuses on continuous, flow-based delivery. Teams use Kanban boards to visualize work items, track progress, and optimize workflow. Kanban is often used for maintenance and support teams and software development.
Extreme Programming (XP) places a strong emphasis on engineering practices. It includes test-driven development (TDD), pair programming, continuous integration, and frequent releases. XP aims to improve software quality and responsiveness to changes.
Lean software development focuses on eliminating waste, optimizing processes, and delivering value to customers efficiently. It emphasizes principles like minimizing work in progress (WIP) and continuous improvement.
Dynamic systems development method (DSDM) is particularly suitable for projects with fixed timeframes and budgets. It provides a structured approach to project management and delivery and emphasizes user involvement throughout the project.
Disciplined Agile delivery (DAD) is a process decision framework that integrates various Agile and lean approaches, allowing teams to tailor their processes to specific situations. It provides guidance for the entire delivery lifecycle.
Whatever framework you choose, remember that the core goal of all Agile methodologies is to deliver value to customers in an adaptive, collaborative, and customer-centric manner.
Agile rituals
Agile is very much about processes and rituals. These are the key ones, used through all frameworks.
Sprint planning is a meeting that occurs at the beginning of each sprint in Scrum. The team reviews the product backlog, selects a set of items to work on during the sprint, and defines the tasks needed to complete them. Sprint planning sets the sprint's goals and scope.
Daily stand-up is a brief daily meeting where team members stand in a circle (or meet virtually) and share updates on their progress, challenges, and plans for the day. It promotes transparency, collaboration, and identifies potential issues early.
Sprint review. At the end of each sprint, the team holds a sprint review meeting to demonstrate the work completed during the sprint to stakeholders. This provides an opportunity for feedback and validation of the product's progress.
Sprint retrospective. After the sprint review, the team conducts a retrospective to reflect on the sprint's process and outcomes. Team members discuss what went well, what could be improved, and develop action items for process enhancement in the next sprint.
Grooming is an ongoing process that involves reviewing, prioritizing, and refining items in the product backlog to ensure they are well-defined, properly estimated, and ready for inclusion in upcoming sprints.
Why do companies choose Agile?
Among dozens of benefits and advantages of Agile methodology, these are four key factors that make it so popular among modern software development teams.
Faster time-to-market. Agile's focus on delivering valuable increments of a product quickly can lead to faster time-to-market, which is the main advantage in competitive industries, like software development.
Empowered teams. Agile encourages self-organizing and cross-functional teams. Team members have a sense of responsibility, which can lead to increased motivation and innovation.
Quality and continuous improvement. Most Agile frameworks incorporate practices that prioritize software quality and continuous improvement. Techniques like test-driven development (TDD) and pair programming enhance code quality.
Reduced risk. Agile's iterative and incremental approach allows for early identification and elimination of project risks. Projects can adapt to changing circumstances, reducing the risk of costly failures.
What are the possible downfalls of Agile?
It’s not all roses, though. As good as it is, Agile can also lead to new challenges.
Lack of structure for some projects
Agile's flexible and adaptive nature can be a disadvantage when dealing with projects that require a high degree of upfront planning, detailed documentation, or strict regulatory compliance. In such cases, the relative lack of structure in Agile can lead to uncertainty and difficulties in meeting compliance requirements.
Limited predictability
Agile's iterative and incremental approach can make it challenging to predict project timelines and budgets. This unpredictability can be a concern for organizations with strict deadlines or budget constraints.
Scope creep
Agile's willingness to accommodate changing requirements can lead to scope creep – Frequent changes can disrupt project focus, extend timelines, and impact project success.
Resource allocation
Agile teams require a significant commitment from team members, including product owners, Scrum Masters, and team members. This can strain resource availability, especially in organizations with limited resources.
Customer involvement
While customer collaboration is a core Agile principle, it can be challenging to secure consistent and meaningful customer involvement. Stakeholder availability and commitment may vary, affecting the quality of feedback.
Documentation debt
Agile prioritizes working software over comprehensive documentation. However, inadequate documentation can lead to documentation debt, making understanding the project's history and codebase quite challenging for new team members.
Learning curve
Agile adoption may require a cultural shift within an organization, so you will need training and learning for teams and stakeholders. This learning curve can slow down the initial implementation of Agile practices.
Team dynamics
Self-organizing teams might encounter challenges related to roles and responsibilities, decision-making, and conflict resolution.
Overemphasis on tools
Agile methodologies are about principles and practices, not just tools. Overreliance on Agile tools without a deep understanding of Agile principles can hinder effective Agile implementation.
Risk of "cargo cult" Agile
Superficial adoption of Agile practices without a genuine commitment to Agile principles can lead to what's sometimes called "Cargo Cult" Agile. This means going through the motions without reaping the full benefits of Agile.
Summing up
Agile is highly adaptable to changing requirements, making it an excellent choice for projects where the scope or objectives are not well-defined upfront or are expected to evolve over time. With their focus on delivering small increments of working software quickly, Agile frameworks are ideal for projects that require rapid deployment or getting a product to market as soon as possible.
Meanwhile, projects with a high degree of risk or uncertainty can benefit from Agile's ability to adapt to changing circumstances and requirements.
Is there anything more Agile, than hiring remote teammates globally to boost your project in the short or in the long term? Contact MWDN to find out why outstaffing is the most agile practice in software development and see the perspectives of your project with our company.
API
Imagine you're at a restaurant. You don't need to know how the kitchen operates or where the food comes from. You simply look at the menu (the API) and order what you want. The waiter (the API) takes your order, communicates it to the kitchen (the system), and brings you the food (the data).
In simpler terms, an API is a set of rules that allows different software programs to talk to each other. It's like a messenger that carries information between two applications. This makes it easier for developers to build new things without having to start from scratch.
For example, a weather app uses an API to get data from a weather service or a social media app uses an API to share content on other platforms. Essentially, APIs allow different software applications to work together seamlessly.
API definition
API (Application Programming Interface) is a set of protocols, routines, and tools for building software applications. It specifies how software components should interact. Essentially, an API acts as an intermediary, allowing different software applications to communicate and share data without requiring knowledge of each other's internal implementation.
How does API work?
An API is a mediator between two software applications, enabling them to communicate and exchange data. This interaction occurs through a request-response cycle.
Request. A client application (like a mobile app or website) sends a request to an API server. The request typically includes specific parameters or data.
Processing. The API server receives the request, processes it based on predefined rules, and accesses the necessary data or performs required actions.
Response. The API server sends a response back to the client, containing the requested data or a status indicating the outcome of the request.
What are the key components of an API?
An API consists of several key components that work together to facilitate communication between software applications. Here are some of them:
Endpoints. These are specific URLs that represent the resources or data accessible through the API. For example, https://api.example.com/users might be an endpoint for retrieving user information.
HTTP methods. These dictate the type of action to be performed on a resource. Common methods include:
GET: Retrieve data
POST: Create new data
PUT: Update existing data
DELETE: Delete existing data
Headers. Additional information sent with the request, such as authentication credentials, content type, and request parameters.
Request body. Data sent to the API server for processing, often in JSON or XML format.
Response. The data returned by the API server, typically in JSON or XML format, along with a status code indicating the success or failure of the request.
Documentation. Detailed information about the API's capabilities, endpoints, parameters, and expected responses.
How do you use API in practice?
Every modern application you use uses APIs. Weather apps use APIs to fetch weather data for different locations. An e-commerce website integrates payment gateways using their APIs to process transactions, and a mapping application incorporates maps and directions using Google Maps API.
Using an API typically involves several steps.
Finding a suitable API. Identify an API that offers the data or functionality you need. Popular platforms like Google, Twitter, and many others provide public APIs.
Understanding the API documentation. Carefully read the API documentation to learn about endpoints, parameters, request formats, and expected responses.
Obtaining necessary credentials. Some APIs require authentication, so you'll need to obtain API keys or tokens.
Making API calls. Use programming languages (like Python, JavaScript, or Java) to construct HTTP requests to the API's endpoints.
Parsing the response. Process the data returned by the API to extract the desired information.
Handling errors. Implement error handling mechanisms to gracefully handle unexpected responses or API failures.
Remember that most APIs have usage limits, so be mindful of your request frequency. Handle sensitive data securely, comply with relevant regulations, and be prepared for API changes and updates.
Artificial Intelligence
AI is no longer science fiction. It's a rapidly evolving reality that's transforming our world at an unprecedented pace. From its humble beginnings as a theoretical concept, AI has become an indispensable tool across diverse industries, fundamentally changing how we live, work, and interact with the world around us.
Content:
AI concepts and functionality
Typization of AI: Weak and Strong AI
AI applications
Ethical issues of using AI
The road ahead: Responsible development for a sustainable future
AI concepts and functionality
At its core, AI mimics human cognitive processes through machines. This vast field encompasses various subfields, each crucial in achieving intelligent machines.
Machine Learning. Algorithms learn and improve from experience without explicit programming, enabling them to identify patterns and make data-driven predictions.
Deep Learning. Inspired by the structure and function of the human brain, DL utilizes artificial neural networks to process complex data, like images and speech, with remarkable accuracy. A prominent example is DeepMind's AlphaFold, which can predict protein structures in a fraction of the time it takes traditional methods, potentially revolutionizing drug discovery.
Natural Language Processing. This branch allows machines to understand and process human language, enabling applications like chatbots, virtual assistants, and machine translation. For instance, LaMDA, a factual language model from Google AI, can engage in open-ended, informative conversations, pushing the boundaries of human-computer interaction.
AI's ability to process massive amounts of data and identify patterns enables it to perform complex tasks and make intelligent decisions. This functionality is facilitated by sophisticated algorithms that continuously learn and improve based on the data they are fed.
Typization of AI: Weak and Strong AI
Narrow AI (Weak AI). Narrow AI is designed to perform specific tasks with a high level of proficiency and is the predominant form of AI in use today. These systems are programmed to carry out a particular function and do not possess consciousness or self-awareness. Examples of Narrow AI include:
Self-driving cars. They utilize AI algorithms to navigate and avoid obstacles.
Spam filters. They identify and filter out spam emails from users' inboxes.
Recommendation systems. They tailor suggestions to users on platforms like Netflix, Amazon, and Spotify based on their previous interactions and preferences.
Narrow AI systems are highly efficient at the tasks they are designed for but lack the ability to perform beyond their pre-programmed capabilities.
General AI (Strong AI). General AI refers to a theoretical form of AI that would have the ability to understand, learn, and apply its intelligence to any intellectual task that a human being can. It would possess self-awareness, consciousness, and the ability to use reasoning, solve puzzles, make judgments, plan, learn, and communicate in natural language.
As of now, General AI remains a hypothetical concept with no existing practical implementations. Researchers and technologists are making progress in AI, but the creation of an AI with human-level intelligence and consciousness is still a subject of theoretical research and debate.
The distinction between Narrow and General AI highlights the current capabilities and future aspirations within the field of artificial intelligence. While Narrow AI has seen widespread application and success, the quest towards achieving General AI continues to push the boundaries of technology, ethics, and philosophy.
AI applications
AI's versatility and transformative potential are evident across various domains. Here are just several examples of how it is used today.
Everyday applications. AI is seamlessly integrated into our daily lives, from virtual assistants like Siri and Alexa to personalized recommendations on Netflix and Spotify.
Business and industry. AI streamlines operations by automating repetitive tasks, optimizing logistics, and providing valuable insights through data analysis. For example, companies like Amazon and Walmart leverage AI to automate inventory management and warehouse operations, leading to significant cost reductions and increased efficiency.
Healthcare. AI is revolutionizing the healthcare sector by assisting with medical diagnosis, drug discovery, and personalized medicine. IBM's Watson, for instance, analyzes medical data to identify potential treatment options and improve patient outcomes.
Finance. AI plays a crucial role in fraud detection, risk assessment, and algorithmic trading, leading to more secure and efficient financial systems.
Transportation. AI is at the forefront of developing autonomous vehicles, with companies like Tesla and Waymo investing heavily in this technology. Additionally, AI optimizes logistics and transportation networks, improving efficiency and reducing costs.
Creative fields. AI generates art, music, and poetry. For instance, Google AI's Magenta project explores the potential of AI in artistic creation, producing pieces that range from musical compositions to paintings.
Ethical issues of using AI
As AI becomes increasingly integrated into society, critical ethical considerations come to the forefront.
1/ Job displacement. Automation through AI raises the question of job displacement, particularly in sectors with repetitive tasks.
2/ Privacy. AI's reliance on vast amounts of data raises concerns about individual privacy and potential misuse of personal information.
3/ Bias. AI algorithms can perpetuate or even exacerbate societal biases if trained on biased data.
The road ahead: Responsible development for a sustainable future
As we embark on this journey with AI, responsible development and ethical considerations must remain at the forefront. By fostering transparency, addressing biases, and prioritizing human well-being, we can ensure that AI serves as a force for good, shaping a brighter future for generations to come.
AR/VR
AR (Augmented Reality) and VR (Virtual Reality) are technologies that enhance or replace the real world with a computer-generated one. AR overlays digital information on the real world, like a heads-up display in a car. VR creates a completely immersive digital environment, blocking out the real world, like a virtual reality headset. Think of AR as adding to reality, while VR replaces reality.
AR definition
Augmented Reality is a technology that overlays digital information onto the physical world, creating an enhanced perception of reality. It combines real-world elements with computer-generated sensory input, such as sound, video, graphics, or GPS data.
VR definition
Virtual Reality is a computer-generated simulation of a three-dimensional image or environment that can be interacted with in a seemingly real or physical way by a person using special electronic equipment, such as a helmet with a screen inside or gloves fitted with sensors.
How does AR work?
AR technology overlays digital information onto the real world through devices like smartphones, tablets, or smart glasses. This involves several key components:
Camera. Captures the real-world environment.
Sensors. Detect the device's orientation, movement, and location.
Processor. Analyzes the captured data and generates digital content.
Display. Presents the augmented reality experience to the user.
The system processes the camera input in real-time, recognizing objects and spaces. Digital elements, such as images, text, or 3D models, are then superimposed on the real-world view, creating an enhanced experience.
How does VR work?
VR immerses users in a completely computer-generated environment. This is achieved through:
Head-mounted display (HMD). Covers the user's eyes and often ears, creating a virtual world.
Motion tracking. Monitors the user's head and body movements to adjust the virtual environment accordingly.
Controllers. Allow users to interact with the virtual world.
VR systems often employ advanced graphics, sound, and haptic feedback to create a sense of presence and immersion. Both AR and VR rely on advanced computer vision, graphics, and sensor technology to deliver their respective experiences.
What is the practical use of AR and VR?
AR and VR have found applications across various industries. AR is used in retail for virtual try-ons for clothing, furniture, and accessories, in gaming to overlay digital elements onto real-world environments (e.g., Pokémon Go), in education for interactive learning experiences, such as anatomy lessons with 3D models overlaid on real bodies, in navigation for real-time directions and information overlaid on the user's view, and in maintenance to provide step-by-step instructions for repairing machinery.
VR is a top technology for gaming. It creates Immersive gaming experiences with realistic environments and interactions. You can also find it in training – simulating real-world scenarios for training purposes (e.g., flight simulators, medical simulations). Real estate uses it for virtual property tours, while therapy benefit from VR for exposure therapy for phobias and PTSD.
What kind of specialists work with AR/VR?
The AR and VR industry requires a diverse skill set. Here are some of the technical roles you will need for the niche:
AR/VR developers. They build the core functionalities and experiences within AR/VR applications.
3D modelers and animators. They create the visual assets for AR/VR environments.
Game developers. They design interactive experiences within VR, often leveraging game engines like Unity or Unreal Engine.
Software engineers. They develop the underlying software architecture and infrastructure.
UX/UI designers. They create intuitive and engaging user interfaces for AR/VR experiences.
What is the future of AR/VR?
The future of AR and VR is poised for significant growth and innovation. What should we expect in 2024 and above?
Increased realism. Advancements in hardware and software will lead to more realistic and immersive experiences.
5G and beyond. Faster networks will enable real-time data transfer and support complex AR/VR applications.
Integration with AI. AI will enhance AR/VR experiences by enabling intelligent interactions and personalized content.
Mass adoption. AR glasses and VR headsets are expected to become more affordable and accessible, leading to wider adoption.
New applications. AR and VR will expand into new industries and use cases, such as remote collaboration, education, and healthcare.
As AR and VR become more integrated into daily life, addressing privacy, safety, and addiction concerns will be crucial. Overall, AR and VR are on the cusp of transforming how we interact with the world and each other.
Backend
The backend is like the kitchen. You don't see it, but it's where all the magic happens. The chefs prepare your food (process data), the kitchen staff manages ingredients (stores data), and the dishwasher cleans up (data management). The waiter (frontend) brings you the food (information), but the real work happens behind the scenes in the kitchen (backend).
Backend definition
Backend refers to the server-side of a software application or website, responsible for business logic, data management, and application functionality. It encompasses the underlying infrastructure and processes that support the user interface.
Backend components
The server is the backbone of a backend system. It's a powerful computer that handles requests from clients (like web browsers or mobile apps), processes them, and sends back responses. Imagine it as a receptionist directing visitors and providing information.
A database is where information is stored and organized. It's like a digital filing cabinet for the application. There are different types of databases (relational, NoSQL) to suit various data storage needs.
Application logic is the brain of the application. It defines how the application should respond to different inputs and requests. It's the set of rules and calculations that determine the output. For example, calculating the total cost of a shopping cart or verifying user login credentials.
API (Application Programming Interface) is a set of rules for building and interacting with software applications. It's like a contract defining how different parts of the system communicate. For example, a mobile app might use an API to fetch data from a backend server.
These components work together to create a functional backend system. The server handles requests, the database stores data, the application logic processes information, and the API facilitates communication between different parts of the system.
Backend processes examples
Backend processes encompass a wide range of activities that ensure the smooth functioning of a web application. Here are some examples:
User authentication and authorization
Verifying user credentials (username, password) against a database.
Generating and managing session tokens.
Enforcing access controls based on user roles and permissions.
Data management
Storing and retrieving user data (profiles, preferences, purchase history).
Managing product information, inventory, and pricing.
Processing transactions (payments, orders, refunds).
API management
Defining endpoints for accessing application data and functionalities.
Handling API requests and responses.
Implementing API security measures.
Error handling and logging
Detecting and handling exceptions to prevent application crashes.
Recording system events and errors for troubleshooting and analysis.
Performance optimization
Caching frequently accessed data.
Load balancing to distribute traffic across multiple servers.
Database query optimization.
Technologies used for backend development
Backend development involves using a combination of languages, frameworks, and databases to build an application's server-side logic.
Programming languages and frameworks
Python. Known for its readability and versatility, used extensively in web development, data science, and machine learning. Django is a high-level framework for rapid web development.
Java. A robust language for enterprise-level applications, offering strong typing and performance. Spring Boot simplifies Java-based application development.
JavaScript is primarily used for frontend development. However, Node.js enables building scalable backend applications and Express.js is a minimalist framework for Node.js.
Ruby. Emphasizes developer happiness and productivity, popularized by Ruby on Rails framework. Ruby on Rails provides a structured approach to building web applications.
PHP. Widely used for web development, known for its simplicity and ease of learning. Laravel is its most popular framework for building web applications.
C#. Often used in Microsoft-centric environments, offering strong typing and performance.
Databases
Relational Databases: Store data in structured tables (MySQL, PostgreSQL, SQL Server).
NoSQL Databases: Handle unstructured or semi-structured data (MongoDB, Cassandra, Redis).
The choice of technologies depends on factors like project requirements, team expertise, and performance needs.
Who are backend developers? What stack of skills should they have?
Backend developers are the unsung heroes of the digital world, responsible for the technical infrastructure that powers websites and applications. They focus on the server-side logic, handling data management, and ensuring seamless application performance. Backend developers often collaborate with frontend developers, database administrators, and DevOps engineers to create robust and scalable applications.
Essential skill set
To excel in backend development, devs usually have a strong foundation in:
Languages: Python, Java, JavaScript (Node.js), Ruby, PHP, or C#.
Databases: Relational databases (MySQL, PostgreSQL, SQL Server) and NoSQL databases (MongoDB, Cassandra).
Server-side frameworks: Django, Ruby on Rails, Node.js, Express.js, Laravel, Spring Boot.
API development: RESTful and GraphQL APIs.
Data structures and algorithms: Efficient data handling and problem-solving.
Version control: Tools like Git for managing code changes.
Cloud platforms: AWS, Azure, or GCP for deploying and managing applications.
Big Data
Big data is a massive amount of information that is too large and complex for traditional data-processing application software to handle. Think of it as a constantly flowing firehose of data, and you need special tools to manage and understand it.
Big data definition in simple words
Big data encompasses structured, unstructured, and semi-structured data that grows exponentially over time. It can be analyzed to uncover valuable insights and inform strategic decision-making.
The term often describes data sets characterized by the "three Vs": Volume (large amounts of data), Velocity (rapidly generated data), and Variety (diverse data types).
How does big data work?
Big data is processed through a series of stages.
Data generation → Data is produced from sources, including social media, sensors, transactions, and more.
Data capture → This involves collecting data and storing it in raw format.
Data storage → Data is stored in specialized data warehouses or data lakes designed to handle massive volumes.
Data processing → Raw data is cleaned, transformed, and structured to make it suitable for analysis.
Data analysis → Advanced analytics tools and techniques, like machine learning and artificial intelligence, are applied to extract valuable insights and patterns.
Data visualization → Results are presented in visual formats like graphs, charts, and dashboards for easy interpretation.
What are the key technologies used in big data processing?
Big data processing relies on a combination of software and hardware technologies. Here are some of the most prominent ones.
Data storage
Hadoop Distributed File System (HDFS). Stores massive amounts of data across multiple nodes in a distributed cluster.
NoSQL databases. Designed for handling unstructured and semi-structured data, offering flexibility and scalability.
Data processing
Apache Hadoop. A framework for processing large datasets across clusters of computers using parallel processing.
Apache Spark. A fast and general-purpose cluster computing framework for big data processing.
MapReduce. A programming model for processing large data sets with parallel and distributed algorithms.
Data analysis
SQL and NoSQL databases. For structured and unstructured data querying and analysis.
Data mining tools. For discovering patterns and relationships within large data sets.
Machine learning and AI. For building predictive models and making data-driven decisions.
Business intelligence tools. For data visualization and reporting.
What is the practical use of big data?
Big data has revolutionized the way businesses operate and make decisions. In business, it helps with customer analytics, marketing optimization, fraud detection, supply chain management, and risk management. But that’s not all!
Big data in healthcare
Analyzing data helps identify potential disease outbreaks and develop prevention strategies. It became an important tool for virologists and immunologists, who use data to predict not only when and what kind of disease can outbreak, but also the exact stamm of a virus or an infection.
Big data helps create personalized medicine by tailoring treatments based on individual patient data. It also accelerates the drug development process by analyzing vast amounts of biomedical data.
Big data for the government
Big data can help create smart cities by optimizing urban planning, traffic management, and resource allocation. It can help the police to analyze crime patterns and improve policing strategies and response times. For disaster-prone regions, big data can help predict and respond to natural disasters.
Essentially, big data has the potential to transform any industry by providing insights that drive innovation, efficiency, and decision-making. That includes
finance (fraud detection, risk assessment, algorithmic trading),
manufacturing (predictive maintenance, quality control, supply chain optimization),
energy (smart grids, energy efficiency, demand forecasting), and even
agriculture (precision agriculture, crop yield prediction, and resource optimization).
What kinds of specialists work with big data?
The world of big data requires a diverse range of professionals to manage and extract value from complex datasets. Among the core roles are Data Engineers, Data Scientists, and Data Analysts. While these roles often intersect and collaborate, they have distinct responsibilities within big data.
Data engineers focus on building and maintaining the infrastructure that supports data processing and analysis. Their responsibilities include:
Designing and constructing data pipelines.
Developing and maintaining data warehouses and data lakes.
Ensuring data quality and consistency.
Optimizing data processing for performance and efficiency.
They usually need strong programming skills (Python, Java, Scala) and be able to work with database management, cloud computing (AWS, GCP, Azure), data warehousing, and big data tools (Hadoop, Spark).
A data analyst’s focus is on extracting insights from data to inform business decisions. Here’s exactly what they’re responsible for:
Collecting, cleaning, and preparing data for analysis.
Performing statistical analysis and data mining.
Creating visualizations and reports to communicate findings.
Collaborating with stakeholders to understand business needs.
Data analysts should be pros in SQL, data visualization tools (Tableau, Power BI), and statistical software (R, Python).
Data scientists apply advanced statistical and machine-learning techniques to solve complex business problems. They do so by:
Building predictive models and algorithms.
Developing machine learning pipelines.
Experimenting with new data sources and techniques.
Communicating findings to technical and non-technical audiences.
Data scientists need strong programming skills (Python, R), knowledge of statistics, machine learning, and data mining, and a deep understanding of business problems.
In essence, Data Engineers build the foundation for data analysis by creating and maintaining the data infrastructure. Data Analysts focus on exploring and understanding data to uncover insights, while Data Scientists build predictive models and algorithms to solve complex business problems. These roles often work collaboratively to extract maximum value from data.
Along with this trio, there are also other supporting roles. A Data Architect will design the overall architecture for big data solutions. A Database Administrator will manage and maintain databases. A Data Warehouse Architect will design and implement data warehouses. A Business Analyst will translate business needs into data requirements. These roles often overlap and require a combination of technical and business skills. As the field evolves, new roles and specializations are also emerging.
What is the future of big data?
The future of big data is marked by exponential growth and increasing sophistication. These are just some of the trends we should expect in 2024 and beyond.
Quantum computing promises to revolutionize big data processing by handling complex calculations at unprecedented speeds.
Processing data closer to its source will reduce latency and improve real-time insights.
AI and ML will become even more integrated into big data platforms, enabling more complex analysis and automation.
As data becomes more valuable, regulations like GDPR and CCPA will continue to shape how data is collected, stored, and used.
Responsible data practices, including bias detection and mitigation, will be crucial.
Turning data into revenue streams will become increasingly important.
The demand for skilled data scientists and analysts will continue to outpace supply.
Meanwhile, big data is not without its challenges. Ensuring its accuracy and consistency will remain a challenge and an opportunity for competitive advantage.
Blockchain
Blockchain technology is a decentralized digital ledger that records transactions across many computers so that the registered transactions cannot be altered retroactively. This technology is the backbone of cryptocurrencies, but its applications extend far beyond just serving as the infrastructure for digital currencies.
Content:
Key concepts of blockchain
Applications beyond cryptocurrency
How does blockchain impact the IT sphere?
What are the possible future and challenges of blockchain technology?
Summing up
Below is a breakdown of the basic concepts, applications beyond cryptocurrency, and its impact on the IT industry.
Key concepts of blockchain
Decentralization. Unlike traditional centralized systems, blockchain operates on a distributed network of computers (nodes), eliminating a single point of control and failure.
Transparency. All transactions on the blockchain are visible to participants, ensuring transparency while maintaining privacy through cryptographic techniques.
Immutability. Once a transaction is recorded on the blockchain, it cannot be altered or deleted, guaranteeing the integrity of the transaction history.
Consensus mechanisms. Blockchain employs various consensus methods (e.g., Proof of Work, Proof of Stake) to validate transactions, ensuring all participants agree on the ledger's state without needing a trusted third party.
Applications beyond cryptocurrency
Blockchain's potential extends far beyond cryptocurrencies like Bitcoin and Ethereum. Where else can it become a game changer?
In supply chain management. Blockchain improves transparency and traceability in supply chains, enabling more efficient tracking of goods and authentication of product authenticity.
In smart contracts. Self-executing contracts with the terms directly written into code, automating and enforcing agreements without intermediaries, applicable in finance, real estate, and legal processes.
In healthcare. Secure and immutable records can enhance patient data management, ensuring privacy and enabling more efficient and accurate treatment and research.
In identity verification. Blockchain can offer a secure and unforgeable means of managing digital identities, applicable in voting systems, online authentication, and more.
In decentralized finance. Beyond traditional cryptocurrencies, blockchain supports the development of DeFi platforms, offering financial services without central financial intermediaries.
How does blockchain impact the IT sphere?
Blockchain introduces a new data management, security, and collaboration paradigm, massively affecting the whole IT sphere. Here are the trends we see in 2024:
1. Enhanced security and trust
Blockchain enhances data security and integrity through its decentralized nature and cryptographic hash functions. It provides a tamper-proof system where modifications to the data are virtually impossible without consensus, significantly reducing the risk of fraud and cyber-attacks. This has led IT sectors to adopt blockchain for secure transactions, data management, and identity verification, fostering trust in digital interactions.
2. Shift in skill sets and job opportunities
The rise of blockchain technology has created a demand for professionals with specialized skills in blockchain development, smart contract programming, and blockchain system design. This demand extends beyond technical roles to include legal, regulatory, and business strategy positions focused on blockchain applications. IT professionals are now seeking education and certification in blockchain technology to meet the growing need for expertise in this field.
3. Decentralization of applications and services
Blockchain enables the development of decentralized applications that operate on a peer-to-peer network rather than being controlled by a single entity. This shift challenges traditional centralized IT architectures and business models, prompting companies to explore decentralized solutions for enhanced transparency, security, and efficiency.
4. Innovation in infrastructure
The deployment and management of blockchain applications require new types of IT infrastructure, including distributed computing resources, specialized storage solutions, and enhanced network capabilities. This has led to innovation in cloud services, edge computing, and other IT infrastructure technologies to support the scalability, performance, and security needs of blockchain systems.
5. Regulatory and compliance challenges
As blockchain technology becomes more prevalent, IT departments must navigate an evolving regulatory landscape. Compliance with data protection regulations, understanding the legal implications of smart contracts, and managing cross-border data flows in a decentralized network are complex challenges that IT professionals must address.
6. Emergence of new business models
Blockchain technology supports new business models and revenue streams, such as tokenization, DeFi, and blockchain-as-a-service offerings. IT companies are exploring these models to provide innovative services to their customers, requiring shifts in business strategy, service delivery, and customer support.
7. Data management and interoperability
Blockchain offers new ways to manage and share data across organizations and systems securely. This potential for enhanced interoperability and data exchange is driving IT initiatives to leverage blockchain for supply chain management, healthcare records, and cross-industry data platforms.
What are the possible future and challenges of blockchain technology?
The future of blockchain technology is promising, yet it faces challenges that need to be addressed. Here’s a look at the prospective future developments and the hurdles blockchain technology faces.
Possible future of blockchain technology
Widespread adoption. Beyond finance and cryptocurrencies, blockchain is poised to revolutionize supply chain management, healthcare, real estate, and even government operations by providing transparent, secure, and efficient ways to record transactions and manage data.
Integration with other technologies. Blockchain is expected to increasingly integrate with other emerging technologies, such as IoT and AI, creating more secure and efficient systems for data exchange and automation.
Advancement in DeFi and DAOs. The finance sector may see a shift towards more decentralized platforms, reducing reliance on traditional financial institutions and promoting financial inclusion. DAOs could redefine organizational structures, with blockchain enabling truly decentralized and democratic decision-making processes.
Enhanced privacy and security features. Ongoing developments in blockchain technology will likely produce more sophisticated privacy-preserving technologies, enabling transactions and data management with enhanced security and anonymity.
Regulatory evolution and standardization. As blockchain becomes more mainstream, regulatory frameworks worldwide will evolve to better accommodate and facilitate its growth, including standards for interoperability, security, and privacy.
Challenges facing blockchain technology
Scalability issues. One of the major challenges blockchain faces is scalability. Many blockchain networks struggle to process transactions at scale, which is crucial for widespread adoption.
Energy consumption. Particularly for blockchains that use PoW consensus mechanisms, the energy consumption is significant, raising environmental concerns. There is a growing push towards more energy-efficient consensus mechanisms like PoS.
Regulatory and legal hurdles. The decentralized nature of blockchain poses regulatory challenges, including issues related to compliance with existing financial regulations, data privacy laws, and cross-border transactions.
Interoperability. As more blockchain networks emerge, the need for interoperability between different blockchains becomes critical to enable seamless exchange of information and value.
Public perception and understanding. Misunderstandings and the complex nature of blockchain technology can hinder its adoption. Clearer communication and educational efforts are needed to improve public perception and understanding.
Summing up
While blockchain technology holds transformative potential for numerous sectors, realizing this potential depends on overcoming technical, regulatory, and societal challenges. The future will likely see a combination of technological advancements, regulatory adjustments, and broader cultural shifts as blockchain technology matures and becomes more integrated into everyday business and society.
CI&CD
Imagine you're writing a novel. CI is like sending your manuscript to an editor every time you finish a chapter. The editor checks for errors, inconsistencies, and overall quality. CD is like sending your finished book to the printer. Every time you make significant improvements, a new version of the book is printed and distributed.
Together, CI/CD ensures your book (or software) is always up-to-date, error-free, and ready for readers (users).
CI/CD definition
CI/CD (Continuous Integration and Continuous Delivery) is a software development methodology that automates the build, testing, and deployment of code. It emphasizes frequent integration of code changes from multiple developers into a shared repository and the automated build and testing of the resulting codebase.
What is a CI/CD delivery pipeline?
A CI/CD delivery pipeline is an automated process that moves software from development to production. It encompasses a series of steps, including building, testing, and deploying code.
Continuous Integration (CI). Developers frequently merge code changes into a shared repository, triggering automated builds and tests.
Continuous Delivery (CD). Builds and tests the code, preparing it for deployment to a production-like environment.
Continuous Deployment (CD). Automatically deploys code changes to production after successful testing.
A CI/CD pipeline consists of several sequential stages that automate the software development process.
Commit. Developers commit code changes to a version control system (e.g., Git).
Build. The code is compiled, packaged, and prepared for deployment.
Test. Automated tests (unit, integration, and acceptance) are executed to ensure code quality.
Deploy. The tested code is deployed to a staging or production environment.
Release. The software is made available to end-users.
Monitor. The application's performance and user feedback are monitored in production.
Alternatives to CI/CD
While CI/CD is the dominant approach to modern software development, there are alternatives that you might be considering.
Traditional Waterfall model
A linear sequential design process where each phase depends on the deliverables of the previous one. Less flexible and adaptable compared to CI/CD.
Agile development without CI/CD
While Agile promotes iterative development, it doesn't inherently require CI/CD. Manual testing and deployment can be more error-prone and time-consuming.
Manual deployment
Relies on human intervention for each deployment, which is inefficient and prone to errors. It lacks automation and standardization.
These alternatives generally offer less efficiency, speed, and quality compared to CI/CD. In today's tech environment, CI/CD is the preferred approach for most companies.
Specialists involved in CI/CD
Creating, integrating, and managing a CI/CD pipeline requires a collaborative effort from various specialists. Some of them are:
DevOps engineers. They are at the core of CI/CD, responsible for designing, implementing, and maintaining the pipeline.
Software developers contribute to the pipeline by writing code and committing changes to the version control system.
QA engineers define test cases and integrate them into the pipeline.
Release managers oversee the deployment process and manage releases.
IT operations manage the underlying infrastructure and ensure the pipeline runs smoothly.
Cloud computing
Cloud computing is the delivery of computing services, including servers, storage, databases, networking, software, analytics, and more, over the internet (the cloud) to offer faster innovation, flexible resources, and economies of scale. Cloud computing enables users to access and utilize various IT resources and services on demand without needing to own or manage physical hardware or infrastructure.
Five key characteristics of cloud computing
On-demand self-service. Users can provision and manage computing resources as needed, often through a self-service portal, without requiring human intervention from the service provider.
Broad network access. Cloud services are accessible over the internet from a wide range of devices, including laptops, smartphones, tablets, and desktop computers.
Resource pooling. Cloud providers pool and allocate resources dynamically to multiple customers. Resources are shared among users but are logically segmented and isolated.
Rapid elasticity. Cloud resources can be rapidly scaled up or down to accommodate changes in demand. This scalability ensures that users can access the resources they need without overprovisioning or underutilization.
Measured service. Cloud usage is often metered and billed based on actual usage, allowing users to pay for only the resources they consume. This "pay-as-you-go" model offers cost efficiency and flexibility.
Service models of cloud computing
There are three primary service models of cloud computing: IaaS, PaaS, and SaaS. Let’s break them down.
IaaS
Infrastructure as a Service provides virtualized computing resources over the internet. Users can access virtual machines, storage, and networking components, allowing them to deploy and manage their software applications and services.
Description: IaaS provides users with virtualized computing resources over the internet. These resources typically include virtual machines, storage, and networking components. Users can provision and manage these resources on demand, giving them control over the underlying infrastructure.
Use Cases: IaaS is suitable for users who need flexibility and control over their computing environment. It's commonly used for hosting virtual servers, running applications, and managing data storage.
Examples: Amazon Web Services (AWS) EC2, Microsoft Azure Virtual Machines, Google Cloud Compute Engine.
PaaS
Platform as a Service offers a higher-level development and deployment environment. It includes tools and services for building, testing, deploying, and managing applications. Developers can focus on writing code while the platform handles infrastructure management.
Description: PaaS offers a higher-level development and deployment environment that abstracts much of the underlying infrastructure complexity. It includes tools, services, and development frameworks that enable users to build, test, deploy, and manage applications without worrying about the infrastructure.
Use Cases: PaaS is ideal for developers who want to focus solely on coding and application logic without managing servers or infrastructure. It accelerates application development and deployment.
Examples: Heroku, Google App Engine, and Microsoft Azure App Service.
SaaS
Software as a Service delivers fully functional software applications over the internet. Users can access and use software applications hosted in the cloud without the need for installation or maintenance. Common examples include email services, customer relationship management (CRM) software, and office productivity suites.
Description: SaaS delivers fully functional software applications over the internet. Users can access and use these applications through a web browser without the need for installation or maintenance. SaaS providers handle everything from infrastructure management to software updates.
Use Cases: SaaS is widely used for various business applications, including email, collaboration tools, customer relationship management (CRM), human resources management, and more.
Examples: Salesforce, Microsoft 365 (formerly Office 365), Google Workspace, Dropbox.
These three cloud computing service models represent a spectrum of offerings, with IaaS providing the most control over infrastructure and SaaS offering the highest level of abstraction and simplicity for end-users. Organizations can choose the service model that best aligns with their specific needs, resources, and expertise.
How are cloud services hosted and delivered?
Public Cloud. Services are offered to the general public by cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Resources are shared among multiple customers.
Private Cloud. Cloud infrastructure is exclusively used by a single organization. It can be hosted on-premises or by a third-party provider. Private clouds offer more control and customization options.
Hybrid Cloud. A combination of public and private clouds, allowing data and applications to be shared between them. Hybrid clouds provide flexibility, enabling organizations to leverage the scalability of public clouds while maintaining sensitive data on private infrastructure.
Multi-Cloud. Companies use services from multiple cloud providers to avoid vendor lock-in and exploit each provider's strengths. Multi-cloud strategies often involve managing resources and applications across various cloud environments.
Cloud computing providers
These are some of the most popular and widely recognized cloud computing providers.
Amazon Web Services (AWS)
AWS is one of the largest and most widely used cloud service providers globally. It offers a vast array of cloud services, including computing, storage, databases, machine learning, and analytics
Notable services: Amazon EC2 (Elastic Compute Cloud), Amazon S3 (Simple Storage Service), AWS Lambda, Amazon RDS (Relational Database Service).
Website: AWS
Microsoft Azure
Azure is Microsoft's cloud computing platform, providing a comprehensive suite of cloud services, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).
Notable services: Azure Virtual Machines, Azure App Service, Azure SQL Database, Azure AI and Machine Learning.
Website: Microsoft Azure
Google Cloud Platform (GCP)
GCP offers cloud services for computing, data storage, machine learning, and data analytics. Google's expertise in data and AI is a standout feature of GCP.
Notable services: Google Compute Engine, Google Kubernetes Engine (GKE), BigQuery, Google Cloud AI Platform.
Website: Google Cloud
IBM Cloud
IBM Cloud provides cloud computing and AI services with a focus on hybrid and multi-cloud solutions. It offers a variety of cloud deployment options, including public, private, and on-premises.
Notable services: IBM Virtual Servers, Watson AI services, IBM Cloud Object Storage, Red Hat OpenShift on IBM Cloud.
Website: IBM Cloud
Oracle Cloud
Oracle Cloud offers cloud infrastructure and services, including databases, applications, and cloud-native technologies. It is designed to support enterprise workloads and applications.
Notable services: Oracle Cloud Infrastructure (OCI), Oracle Autonomous Database, Oracle Cloud Applications.
Website: Oracle Cloud
Alibaba Cloud
Alibaba Cloud is a leading cloud service provider in Asia and offers a wide range of cloud computing services, data storage, and AI capabilities.
Notable services: Elastic Compute Service (ECS), Alibaba Cloud Object Storage Service (OSS), Alibaba Cloud Machine Learning Platform.
Website: Alibaba Cloud
Salesforce (Heroku)
Salesforce provides a cloud-based platform known for its CRM solutions. Heroku, a subsidiary of Salesforce, is a cloud platform for building, deploying, and managing applications.
Notable services: Salesforce CRM, Heroku Platform as a Service (PaaS).
Website: Salesforce, Heroku
Custom software development
Custom software development is like building a tailor-made suit. Instead of buying something off the rack, you design and create a garment that fits perfectly. This involves understanding the client's specific needs, creating a design, and then crafting the software to match those requirements precisely.
Stages of custom software development
1. Requirement gathering
This is the foundational stage where the software's purpose is defined. It involves identifying client needs and goals, conducting feasibility studies, and creating detailed functional specifications.
2. Design
The design phase outlines the software's architecture, user interface, and database structure. Key activities include creating wireframes and prototypes, defining data models and relationships, and designing the software's overall structure.
3. Development
This stage involves writing the actual code for the software. Activities include building the user interface, developing the backend logic, integrating databases and APIs, and writing unit tests.
4. Testing
Rigorous testing ensures the software functions as intended. This includes unit testing individual components, integration testing to check how components interact, system testing to evaluate the overall system, and user acceptance testing to get client feedback.
5. Deployment
The software is released into the production environment. This involves installing the software on servers, configuring the environment, and deploying the database.
6. Maintenance
Ongoing support and updates are provided. This includes bug fixing, performance optimization, adding new features, and providing technical support.
Options for custom software development
There are several models for developing custom software, each with its own advantages and disadvantages. Here's a breakdown:
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Many organizations combine elements of these models to create a customized approach that best suits their needs. For example, they might build a core team in-house and outsource specific components or augment their team with external experts.
Factors affecting custom software development cost
The cost of custom software development can start from several hundreds to millions of dollars. It is determined by several key factors.
Project complexity. The number and intricacy of features directly influence development time and cost.
Team size and expertise. Larger teams with higher skill levels generally equate to higher costs.
Technology stack. The specific tools and languages used can affect project budget.
Location. Development costs vary significantly based on geographic location.
Timeline. Accelerated development often requires additional resources, increasing costs.
Change requests. Frequent alterations to project requirements can impact budget and timeline.
Licensing and legal fees. Additional expenses for software licenses and legal compliance.
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What is the future of the custom software development?
The future of custom software development is marked by rapid technological advancements and evolving customer expectations. Key trends shaping the industry include AI/ML, low-code/no-code development, cloud-native architecture, cybersecurity, blockchain technology, IoT integration, as well as AR and VR. Overall, custom software development is poised for significant growth as businesses increasingly rely on technology for competitive advantage.
What are the alternatives to custom software development?
While custom software offers tailored solutions, there are other viable options. You can try off-the-shelf software. These are pre-built software packages designed for general use. These solutions offer faster implementation but might not perfectly align with specific business needs.
Software as a Service (SaaS) is another option you can try. These are cloud-based applications accessed through a web browser. They provide scalability and reduced upfront costs but might have limited customization options.
You can also combine custom development with off-the-shelf or SaaS components to create a hybrid solution that balances cost, time, and functionality.
Cutoff date
In financial reporting, the term "cut-off date" denotes the deadline for incorporating transactions into a financial report for a designated accounting period. Within the United States, this date often coincides with the conclusion of the business day (5 p.m. EST).
Why does the cutoff date bear significance?
Precision. This date enables firms to categorize and document transactions within the appropriate timeframe.
Chronology. The cut-off date influences the sequence of revenues and expenditures. If an entity logs a transaction post this date, it will be designated to the subsequent accounting cycle, potentially leading to variances in the profit and loss statement. This might complicate the juxtaposition of fiscal outcomes across different periods. Consequently, the reliability of financial documents might be compromised as they may not portray the latest data.
Regulatory adherence. The selected cut-off period can modulate a firm's tax obligations. An prematurely chosen cut-off might bypass potential tax deductions, while a belated one could result in taxation on unaccrued revenues.
Stature. A judicious selection of the cut-off date can shape commercial affiliations. Suppliers might withhold credit or rebates if a cut-off seems too premature, given their outstanding dues. Conversely, an overly delayed cut-off might lead to clientele dissatisfaction due to the delivery of services or goods based on obsolete data.
What advantages does a cut-off date offer?
Several merits accompany a cut-off date, such as:
Assurance of transaction recording within the apt fiscal window, fostering accurate financial oversight, pragmatic budget formulation, and informed resource deployment.
Aiding nascent and established entities in optimizing cash flow through punctual revenue acquisition and expense settlements.
Mitigating fraudulent activities by mandating transactional documentation prior to the period's culmination.
Guaranteeing timely transaction execution, precluding any eleventh-hour hustles or postponements.
Bolstering organizational methodicalness. Adhering to cut-off dates aids in systematic task completion, forestalling any task-related ambiguity or duplicity.
How might one instate a cut-off date?
Operating cycles. Aligning the cut-off with operational rhythms is a commendable approach. For inventory-centric entities, a post-receipt yet pre-sale cut-off might be optimal, ensuring comprehensive inventory accountability during audits.
Monthly designation. Companies might opt for a month's end as their cut-off. For instance, if a fiscal year concludes on December 31, that would serve as the cut-off, with transactions prior to this being attributed to the ongoing year and those after – to the ensuing year.
Rolling framework. Here, the cut-off consistently follows a set duration after the preceding period's culmination. If a fiscal year terminates on December 31, a 30-day rolling framework would signify transactions up to January 30 for the current fiscal year and post this date for the next.
Monthly and rolling hybrid. Entities might employ a dual approach with a month-end cut-off, supplemented by a 30-day rolling framework. This implies transactions up to a month's end are for the ongoing month, while those post the month-end but within 30 days of the month's end are for the succeeding month.
***
It's imperative for business proprietors to opt for a consistent cut-off mechanism to ensure the veracity of their financial declarations.
Cybersecurity
What is cybersecurity? Cybersecurity encompasses the techniques and processes aimed at protecting computer systems, networks, and data from digital threats, unauthorized access, or damage. It involves deploying security measures, including firewalls, antivirus software, and intrusion detection systems, coupled with user education and stringent security policies.
With hybrid wars that include cyber attacks today, the importance of cybersecurity, common threats, and best practices for protection is essential.
What does cybersecurity do?
Protecting sensitive data. Cybersecurity shields personal and corporate data from theft, damage, or unauthorized modification. According to Verizon's 2023 report, data breaches have increased by 33% over the past year, emphasizing the need for robust data protection.
Preventing unauthorized access. Cybersecurity practices involve implementing measures like multi-factor authentication and access controls. A study by IBM found that unauthorized access was a primary cause of 43% of data breaches.
Maintaining privacy. This function of cybersecurity is essential for safeguarding user data against illicit tracking and collection. Privacy laws like GDPR in the EU have put a spotlight on the importance of privacy in cybersecurity.
Ensuring continuity of business operations. Cybersecurity prevents disruptions caused by cyberattacks. For example, the WannaCry ransomware attack of 2017 caused an estimated $4 billion in worldwide losses.
Legal and regulatory compliance. Non-compliance with laws like HIPAA can lead to heavy fines. For example, HIPAA violations can cost up to $1.5 million per incident.
Building trust. Effective cybersecurity practices enhance customer confidence. Surveys indicate that 85% of consumers value privacy and data protection when choosing companies to do business with.
Cybersecurity is integral to modern business operations, offering protection against a wide range of digital threats and ensuring compliance with legal standards. It safeguards data and plays a vital role in maintaining business continuity and building customer trust.
Common cybersecurity threats
These are some of the most common threats modern companies have to face.
Malware encompasses various forms of harmful software, including viruses that can replicate themselves, worms that spread across networks, trojans that disguise themselves as legitimate software, and ransomware that locks users out of their systems until a ransom is paid. The impact of malware can be severe: for example, the WannaCry ransomware attack we mentioned above affected more than 200,000 computers across 150 countries.
Phishing attacks involve deceptive emails or websites that trick individuals into revealing sensitive information like passwords or credit card numbers. The FBI’s Internet Crime Report noted that phishing was the most common type of cybercrime in 2020.
Man-in-the-middle attacks (MitM). This form of eavesdropping intercepts communication between two parties to steal or alter the data. A common example is a hacker intercepting data on an unsecured Wi-Fi network.
Denial of service (DoS) attacks flood systems, servers, or networks with traffic to exhaust resources and bandwidth, rendering the service unusable. One of the most notorious DoS attacks was against Dyn, a major DNS provider, in 2016, disrupting internet platforms and services.
SQL injection involves inserting malicious code into SQL-using databases via a vulnerable website, which can then be used to access and manipulate confidential data. For example, in 2019, a SQL injection attack exposed the data of over 1 million customers of an Australian telecommunications company.
Zero-day exploits target unknown vulnerabilities in software or hardware, making them particularly dangerous as they occur before the vendor becomes aware and fixes the issue. The Stuxnet worm, discovered in 2010, is one of the most famous examples of a zero-day exploit.
Best practices for IT and cyber protection
Here are some things you can do as an individual or as a business owner to protect your personal and sensitive data from the simplest attacks and cyber threats.
1/ Strong passwords and multi-factor authentication. Strong, unique passwords, coupled with MFA, significantly heighten security. According to Verizon's Data Breach Investigations Report, 81% of hacking-related breaches leveraged either stolen and/or weak passwords.
2/ Regular software updates. Consistently updating software and systems helps patch security vulnerabilities. Microsoft reported that updating systems could prevent 85% of targeted cyberattacks.
3/ Employee training and awareness. Training staff on cybersecurity risks is essential. IBM’s Cyber Security Intelligence Index found that 95% of cybersecurity breaches are due to human error.
4/ Firewalls and antivirus software. These tools are fundamental in safeguarding against various cyber threats. The use of antivirus software can detect and block nearly 100% of known malware.
5/ Data encryption. Encrypting sensitive data, both in transit and at rest, is critical. A study by the Ponemon Institute showed that encryption can significantly reduce the cost of a data breach.
6/ Regular backups. Backing up data ensures recovery in the event of an attack. Companies that regularly back up and encrypt their data can reduce the impact of data breaches significantly.
7/ Incident response plan. An effective response plan can reduce the cost of a data breach by as much as 40%, according to IBM’s Cost of a Data Breach report.
8/ Secure Wi-Fi networks. Securing wireless networks is vital. A survey by Symantec revealed that 60% of consumers believe their Wi-Fi networks are secure, but only 50% have taken steps to secure them.
9/ Vulnerability assessments and penetration testing. Regular testing and patching of vulnerabilities are key. Cisco’s Annual Cybersecurity Report highlighted that 42% of organizations faced public scrutiny after a security breach.
10/ Limiting user access. Implementing the principle of least privilege can significantly reduce risks. A study by Forrester found that 80% of security breaches involve privileged credentials.
What kind of specialists provide IT and cyber protection?
As cybersecurity is so complex and varied, it demands many skills from its providers. What used to be done by one person today is covered by five specialists and more. Here are some of the job positions you can find in cybersecurity and a short explanation of what these people do.
Cybersecurity Analyst monitors networks for security breaches, investigates violations, and implements protection solutions.
Network Security Engineer designs, implements, and maintains network security solutions to protect against cyber threats.
Information Security Manager oversees and coordinates the company’s information security policies and procedures.
Chief Information Security Officer (CISO) is a high-level executive responsible for the overall strategy and direction of information security in an organization.
Ethical Hacker/Penetration Tester simulates cyber attacks to identify and fix security vulnerabilities.
Security Software Developer develops security software, such as encryption technologies and firewall programs.
IT Security Consultant advises on best practices for protecting companies’ IT infrastructure and data.
Data science
The history and evolution of data science began as a concept in statistics and data analysis, gradually evolving into a distinct field.
In the 1960s, John Tukey wrote about a future "data analysis," which combined statistical and computational techniques.
By the 1990s, the term "data science" was used as a placeholder for this emerging discipline.
The growth of the internet and digital data in the early 2000s significantly accelerated its development.
Machine learning, big data platforms, and increased computational power have since transformed data science into a key driver of innovation across so many industries.
What is data science?
Data science is an interdisciplinary field that utilizes scientific methods, processes, algorithms, and systems to extract knowledge and insights from structured and unstructured data. It combines aspects of statistics, data analysis, machine learning, and related methods to understand and analyze actual phenomena with data. This field applies theories and techniques from many fields within the context of mathematics, statistics, computer science, domain knowledge, and information science.
The scope of data science
Data science's interdisciplinary nature, blending computer science, statistics, mathematics, and specific domain knowledge, makes it a cornerstone in modern decision-making processes. Below are areas where data science is key.
1/ Data analysis and exploration involves dissecting datasets to identify patterns, anomalies, and correlations. For example, retailers analyze customer data to identify purchasing trends and optimize inventory management.
2/ Predictive modeling is utilized in fields like weather forecasting or stock market analysis, where models predict future trends based on historical data.
3/ ML and AI development. In healthcare, algorithms diagnose diseases from medical images. In finance, they predict stock performance or detect fraudulent activities.
4/ Data engineering is critical for managing and preparing data for analysis. For example, data engineers in e-commerce companies ensure data from various sources is clean and structured.
5/ Data visualization. Tools like Tableau or PowerBI transform complex data sets into understandable graphs and charts, aiding in decision-making processes.
6/ Big data technologies. Platforms like Hadoop or Spark manage and process data sets too large for traditional databases and are used extensively in sectors handling massive data volumes like telecommunications.
7/ Domain-specific applications. In marketing, data science helps in customer segmentation and targeted advertising; in urban planning, it aids in traffic pattern analysis and infrastructure development.
The role of data science in business
Data science aids in understanding customer behavior, optimizing operations, and identifying new market opportunities. It encompasses tasks like predictive modeling, data analysis, and the application of machine learning to uncover insights from large datasets. All these capabilities make data science an innovation driver every business wants to use. One of the key business-oriented capabilities of data science is predictive analytics.
What is predictive analytics?
Predictive analytics is a branch of advanced analytics that uses historical data, statistical algorithms, and ML techniques to identify the likelihood of future outcomes. This approach analyzes patterns in past data to forecast future trends, behaviors, or events.
It is widely used in finance for risk assessment, marketing for customer segmentation, healthcare for patient care optimization, and more. In retail, for example, companies like Target use data science to analyze shopping patterns, thus predicting customer buying behaviors and effectively managing stock levels. Predictive analytics enables businesses to make proactive, data-driven decisions.
Case studies across industries
Retail. Walmart integrates data science for sophisticated inventory management, optimizing both stock levels and distribution logistics.
Finance. American Express employs data science in fraud detection, analyzing transaction data to identify unusual patterns indicative of fraudulent activity.
Healthcare. Institutions like the Mayo Clinic use data science to predict patient outcomes, aiding in personalized treatment plans and preventive healthcare strategies.
E-Commerce. Amazon utilizes data science for personalized product recommendations, enhancing customer experience, and increasing sales.
Transportation. Uber applies data science for dynamic pricing and optimal route planning, improving service efficiency.
Manufacturing. General Electric leverages data science for predictive maintenance on industrial equipment, reducing downtime and repair costs.
Entertainment. Netflix uses data science to tailor content recommendations, increasing viewer engagement and retention.
Telecommunications. Verizon uses data science for network optimization and customer service enhancements.
Sports. Major sports teams employ data science for player performance analysis and injury prevention.
How does data science impact business strategy and operations?
Data science's impact on business strategy and operations is extensive and multifaceted. It enhances operational efficiency and supports informed decision-making, leading to the discovery of new market opportunities.
In marketing, data science helps create more precise and effective advertising strategies. Google, for example, uses data science to refine its ad personalization algorithms, resulting in more relevant ad placements for consumers and higher engagement rates. Data science also assists in risk management and optimizing supply chains, contributing to improved overall business performance and competitive advantage.
These applications demonstrate how data science can be integral in optimizing various aspects of business operations, from customer engagement to strategic marketing initiatives.
What are the key tools and technologies of data science?
Here are the tools and technologies which form the backbone of data manipulation, analysis, and predictive model development in data science.
Python and R as programming languages. Python’s simplicity and vast library ecosystem, like Pandas and NumPy, make it popular for data analysis. It is used by companies like Netflix for its recommendation algorithms. R is favoured for statistical analysis and data visualization, widely used in academia and research.
Machine learning libraries. TensorFlow, developed by Google, is used in deep learning applications like Google Translate. PyTorch is known for its flexibility and is used in Facebook’s AI research, while scikit-learn is ideal for traditional machine learning algorithms.
Big data platforms. Apache Hadoop is used by Yahoo and Facebook to manage petabytes of data, and Spark, known for its speed and efficiency, is used by eBay for real-time analytics.
SQL databases are essential for structured data querying and are widely used in all industries for data storage and retrieval.
Data visualization tools like Tableau, PowerBI, and Matplotlib are used for creating static, animated, and interactive visualizations.
What’s the difference between data science and data analytics?
Data science and data analytics are similar but have different focuses. Data science is about creating new ways to collect, keep, and study data to find useful information. It often predicts future trends or uncovers complex patterns using machine learning.
Data analytics is more about examining existing data to find useful insights and patterns, especially for business use. In simple terms, data science develops new methods for working with data, while data analytics applies these methods to solve real-life problems.
How do you start using data science in business?
Here’s a simplified step-by-step guide on how you should start using data science for your business goals:
Define objectives. Identify what you want to achieve with data science, like improving customer experience or optimizing operations.
Data collection. Gather data relevant to your objectives. For instance, an e-commerce business might collect customer purchase history and browsing behavior.
Build a data team. Hire or train data professionals, including data scientists, analysts, and engineers.
Data cleaning and preparation. Organize and clean your data.
Analysis and modeling. Use statistical methods and machine learning algorithms to analyze the data. For example, a retailer could use predictive modeling to forecast sales trends.
Implement insights. Apply the insights gained from the analysis to make informed business decisions. For example, a logistics company might optimize routes based on traffic pattern analysis.
Monitor and refine. Continuously monitor the outcomes and refine your models and strategies for better results.
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Make sure to contact MWDN whenever you need assistance with finding and hiring data scientists for your company. Our staff augmentation expertise will help you reinforce your team with some unique and valuable specialists from Eastern Europe.
Dedicated development teams
Dedicated development team is like hiring a skilled team of craftsmen to build your custom furniture. Instead of hiring individual workers or buying ready-made furniture, you get a dedicated team focused solely on creating your piece. They work exclusively for you, understanding your vision and bringing it to life.
What’s the difference between staff augmentation and dedicated teams?
Staff augmentation is like borrowing tools from a neighbor to complete a home improvement project. You have your core team but require additional expertise for specific tasks. You manage these external resources.
A dedicated team is akin to hiring a specialized construction crew. They focus solely on your project, working as an extension of your team. You have greater control over the team and its direction.
Key differences lie in control, commitment, and team dynamics. Dedicated teams offer more control and long-term commitment, while staff augmentation provides flexibility for specific needs.
What are the benefits of dedicated teams?
Dedicated teams offer several advantages.
Focused expertise. Tailored skills for specific project needs.
Stronger communication. Direct interaction for better understanding.
Accelerated timelines. Faster project completion.
Greater control. Influence over the development process.
Intellectual property protection. Safeguarding sensitive information.
Long-term partnerships. Building trust and fostering innovation.
Potential cost-efficiency. Long-term value compared to other models.
How do you hire a dedicated team?
Building a dedicated development team involves several key steps.
Firstly, you need to define your needs. Clearly outline project scope, required skills, and team size.
→ Then, research potential providers. Explore different companies offering dedicated team services. Evaluate the top providers you’ve chosen. Consider factors like experience, portfolio, communication, and pricing.
→ Think of the team composition. Determine the specific roles and skills needed.
→ Now, it’s time for contract negotiation. Finalize terms, including payment, intellectual property, and confidentiality.
→ Next stop, onboarding. Introduce the team to your project and company culture.
Effective communication and collaboration are essential for a successful partnership.
DevOps
DevOps is a set of principles, practices, and tools that aims to bridge the gap between software development and IT operations. It promotes collaboration, automation, and continuous integration and delivery to streamline the software development and deployment lifecycle. Essentially, DevOps seeks to break down silos and foster a culture of collaboration between development and operations teams.
Why use DevOps?
Faster delivery – DevOps accelerates the software delivery process, allowing organizations to release updates, features, and bug fixes more rapidly.
Enhanced quality – By automating testing, code reviews, and deployment, DevOps reduces human error, leading to more reliable and higher-quality software.
Improved collaboration – DevOps promotes cross-functional collaboration, enabling development and operations teams to work together seamlessly.
Efficient resource utilization – DevOps practices optimize resource allocation, leading to cost savings and more efficient use of infrastructure and human resources.
What are the DevOps Tools?
DevOps relies on a wide array of tools to automate and manage various aspects of the software development lifecycle. Some popular DevOps tools include:
Version control: Git, SVN
Continuous integration: Jenkins, Travis CI, CircleCI
Configuration management: Ansible, Puppet, Chef
Containerization: Docker, Kubernetes
Monitoring and logging: Prometheus, ELK Stack (Elasticsearch, Logstash, Kibana)
Collaboration: Slack, Microsoft Teams
Cloud services: AWS, Azure, Google Cloud
What are the best DevOps practices?
Continuous Integration. Developers integrate code into a shared repository multiple times a day. Automated tests are run to catch integration issues early.
Continuous Delivery. Code changes that pass CI are automatically deployed to production or staging environments for testing.
Infrastructure as code (IaC). Infrastructure is defined and managed through code, allowing for consistent and reproducible environments.
Automated testing. Automated testing, including unit tests, integration tests, and end-to-end tests, ensures code quality and reliability.
Monitoring and feedback. Continuous monitoring of applications and infrastructure provides real-time feedback on performance and issues, allowing for rapid response.
Collaboration and communication. Open and transparent communication between development and operations teams is essential for successful DevOps practices.
What is the DevOps role in software development?
DevOps is rather a cultural shift that involves collaboration between various roles, including developers, system administrators, quality assurance engineers, and more. DevOps encourages shared responsibilities, automation, and continuous improvement across these roles. It fosters a mindset of accountability for the entire software development lifecycle, from code creation to deployment and beyond.
What are the alternatives to DevOps?
While DevOps has gained widespread adoption, there are alternative approaches to software development and delivery.
Waterfall is a traditional linear approach to software development that involves sequential phases of planning, design, development, testing, and deployment.
Agile methodologies, such as Scrum and Kanban, emphasize iterative and customer-focused development but may not provide the same level of automation and collaboration as DevOps.
NoOps is a concept where organizations automate operations to the extent that traditional operations roles become unnecessary. However, it may not be suitable for all organizations or situations.
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DevOps is a transformative approach to software development that prioritizes collaboration, automation, and continuous improvement. By adopting DevOps practices and tools, you can enhance your software delivery, improve quality, and stay competitive. Give us a call if you’re looking for a skilled DevOps engineer but fail to find them locally.
Employer of Record (EOR)
An Employer of Record is an organization that legally employs workers on behalf of another company. Essentially, the EOR becomes the official employer for tax, insurance, and compliance purposes while the worker performs tasks for the client company. This partnership allows businesses to expand their operations into new regions without setting up a legal entity in that country.
How does the EOR model work?
When a company partners with an EOR, the latter takes on the responsibility of hiring, payroll, benefits administration, tax compliance, and ensuring adherence to local labor laws. This includes:
Official employment for global and remote teams
Drafting employment contracts that comply with local laws
Background checks for new hires
Processing international payrolls and compensations
Tax documentation and proper filing based on local laws
Employee benefits and intellectual property protection
Recruitment
Onboarding
Legal compliance
Risk management
Contract terminations
How it works
EORs create a presence in various countries either through local entities or by hiring subcontractors. They partner with benefit providers to offer health insurance, pensions, and more. Businesses can hire from countries where the EOR operates. The EOR manages all employment-related tasks, while businesses handle daily work assignments and scheduling.
Benefits of using an EOR
Faster and cost-effective international hiring
Avoid legal complications and penalties
Access to a broader talent pool
Reduced HR workload
Enhanced data security
Better and localized employee benefits
Easier talent integration post-mergers
Quick market entry
Flexibility – companies can test new markets with a smaller team before deciding to establish a larger presence.
EOR vs PEO: Clearing the confusion
People often confuse EOR with Professional Employer Organizations (PEO). While both provide HR and payroll services, there are notable differences. A PEO co-employs workers with client companies, sharing employment responsibilities. In contrast, an EOR becomes the primary employer, shouldering all employment-related responsibilities and liabilities.
EOR vs GEO
Global Employer of Record (GEO) is essentially another term for EOR. When hiring internationally, the term 'GEO' often comes into play.
Independent Contractors
Typically, EORs specialize in facilitating full-time and part-time employment. Hiring independent contractors doesn't usually require an EOR, as there are fewer regulatory obligations involved.
When should you consider an EOR?
Here are some typical situations when cooperation with an EOR might be a cost-efficient solution for your business needs.
Pilot programs. Before fully investing in a new market, companies can use an EOR to hire a small team for pilot projects.
Short-term projects. For projects with a definitive end date, an EOR can be a more viable solution than setting up a full business entity.
Remote workforce expansion. As remote work becomes more prevalent, EORs allow companies to hire talent from anywhere without legal constraints.
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The Employer of Record model offers a strategic solution for businesses looking to tap into global talent pools without the administrative and legal burdens that come with international hiring. As companies continue to expand their boundaries in search of growth and talent, EORs will play an increasingly vital role in shaping the future of global employment.
FinTech
FinTech is a combination of two words: “Finance" and "Technology." It refers to software, apps, and other technologies that improve and automate financial services for individuals and businesses. Think of it as using technology to make money management easier and more efficient.
FinTech examples
Fintech encompasses a wide range of applications and services that are reshaping the financial industry. Here are several examples to make the notion clearer:
Payment systems
Mobile payments. Using smartphones for transactions (e.g., Apple Pay, Google Pay).
Peer-to-peer payments. Transferring money between individuals (e.g., Venmo, Zelle).
Cryptocurrencies. Digital currencies operating on blockchain technology (e.g., Bitcoin, Ethereum).
Lending and borrowing
Crowdfunding. Raising funds from a large number of people (e.g., Kickstarter, Indiegogo).
Peer-to-peer lending. Connecting borrowers and lenders directly (e.g., Prosper, LendingClub).
Digital wallets. Storing and managing digital payments (e.g., PayPal, Alipay).
Investment and wealth management
Robo-advisors. Automated investment platforms (e.g., Betterment, Wealthfront).
Crowdfunding platforms. Investing in startups and projects (e.g., Kickstarter, Indiegogo).
Cryptocurrency exchanges. Platforms for trading cryptocurrencies (e.g., Coinbase, Binance).
Financial management
Personal finance apps. Budgeting, saving, and tracking expenses (e.g., Mint, YNAB).
InsurTech. Using technology to improve insurance services (e.g., Lemonade, Coverage).
FinTech is one of our favorite domains! MWDN has been hiring specialists for FinTech projects for many years. Today, our portfolio includes some well-known cases like VatBox, an app to manage your taxes, and Charge, a popular wallet with benefits.
How does a FinTech app work?
Let’s get to know how FinTech works with the example of a banking app. A banking app typically functions by connecting to a user's bank account through secure APIs. This allows the app to access account information, initiate transactions, and provide various financial services.
These are some of the key components and processes involved in the work of a FinTech banking app:
User authentication. Strong security measures are essential to protect user data. This often involves multi-factor authentication (MFA) like fingerprint or facial recognition.
Account linking. Users connect their bank accounts to the app using secure APIs provided by financial institutions.
Transaction processing. The app facilitates fund transfers, bill payments, and other transactions through secure connections to the user's bank.
Data security. Robust encryption and security protocols are implemented to protect sensitive financial data.
User interface. A user-friendly interface allows customers to easily navigate and perform various financial tasks.
Push notifications. Real-time alerts for transactions, low balances, or other important notifications.
Additional features may include budgeting tools, investment options, and other financial management features.
What technologies are used in FinTech projects?
Fintech is a technology-driven industry that leverages various tools and platforms. Its core technologies include blockchain, which underpins cryptocurrencies and provides secure, transparent, and decentralized transaction recording; AI and ML, which are used for fraud detection, risk assessment, algorithmic trading, and personalized financial advice; cloud computing, which provides scalable infrastructure for fintech applications; big data to processes vast amounts of financial data for insights and predictions, and cybersecurity to protects sensitive financial information from cyber threats.
Among the most popular programming languages and frameworks developers use to create FinTech apps are Python, which is popular for data analysis, machine learning, and backend development, Java, robust for enterprise-grade applications and financial systems, JavaScript, which is essential for front-end development and web applications, C#, which is used in various fintech applications, especially in the Microsoft ecosystem, and Ruby on Rails, known for rapid development and web applications.
Other technologies might include biometrics for secure authentication (fingerprint, facial recognition), API integration to connect different financial systems and services, and data analytics for extracting insights from financial data. The choice of technologies depends on the specific fintech product or service being developed.
What kind of specialists do you need for a FinTech project?
Building a successful fintech product requires a diverse team of specialists. You will need both technical and business specialists. Among them:
Software engineers to develop the core functionalities of the fintech application.
Data scientists to analyze financial data to extract insights and build predictive models.
Blockchain developers for projects involving cryptocurrencies or distributed ledger technology.
Security experts to ensure the protection of sensitive financial data.
UI/UX designers to create user-friendly interfaces.
Financial analysts to understand financial markets and products.
Product managers to define product vision and roadmap.
Compliance officers to ensure adherence to financial regulations.
Risk managers to assess and mitigate financial risks.
Full-Time Equivalent (FTE)
Full-Time Equivalent (FTE) is a metric to gauge the total working hours of employees in a company. It's sometimes called Whole-Time Equivalent (WTE).
How to Calculate FTE?
Determine the total hours worked by all employees, divide by 40, and round to two decimal points:
Total hours by all employees ÷ 40 = FTE
E.g.: If seven employees work a combined 170 hours weekly, the FTE is: 170 ÷ 40 = 4.25
Essentially, your company operates with the equivalent of 4.25 full-time employees.
Applications of FTE
Business planning. HR departments use FTE to strategize staffing. By assessing the total hours needed for the company or a project, FTE provides a clearer picture of staffing requirements.
Government program eligibility. In the U.S., programs like the Paycheck Protection Program (PPP) use FTE to determine if businesses qualify for them. The metric also helps businesses ascertain if they're considered an Applicable Large Employer (ALE) and if they're eligible for certain tax credits.
FTE employee criteria
Typically, an FTE employee works 40 hours weekly (or 2,800 hours annually). While many businesses recognize a 40-hour week as full-time, the IRS (the Internal Revenue Service) views 30 hours weekly (or 130 hours monthly) as the threshold. Some businesses set a 37.5-hour week, excluding the daily half-hour break.
Understanding FTE percentages
FTE 100% (or FTE 1.0) represents a full-time worker. This can be one person working 40 hours or several part-timers together, equating to 40 hours.
E.g.: An ice cream truck operating 20 hours weekly needs 0.5 FTE. If it runs daily, it requires 0.875 FTE. Two trucks running simultaneously need 1.75 FTEs.
0.5 FTE refers to a part-time position, roughly 20 hours weekly. Such roles might include project leads or supervisors who don't need to work full weeks.
Special FTE considerations
ALE (Applicable Large Employer) status. For determining ALE status in the U.S., the Internal Revenue Service sets a 30-hour work week as the standard.
Small business tax credit. For U.S. companies, this credit assists in covering employee health benefits costs. Eligibility criteria include having fewer than 25 FTEs.
FTEs for this purpose can be calculated in three ways: (1) actual hours worked, (2) days-worked equivalency, or (3) weeks-worked equivalency, with the final FTE count determined by dividing total hours by 2,080.
PPP eligibility. For the Paycheck Protection Program, FTE helps in loan amount determination. FTEs are averaged over specific past periods to determine the figure.
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Summing up, FTE is a versatile metric used by businesses for diverse purposes, ranging from staffing to regulatory compliance. It's crucial to understand its nuances and apply the appropriate calculation method based on context.
Full-time hours
Across the globe, the definition of "full-time" employment varies significantly, influenced by cultural norms, economic conditions, and labor regulations. While the 40-hour workweek is a standard benchmark in countries like the United States, other nations, such as France, lean towards a 35-hour week. Furthermore, some countries in Asia are known for longer working hours, whereas Nordic countries often prioritize work-life balance with shorter work weeks.
This diverse tapestry of work-hour norms is a testament to the wide-ranging approaches to productivity, leisure, and well-being in different cultural and economic contexts. Let's explore how "full-time" is defined across various nations and the implications of these variations.
Full-time hours in the US
In the US, a typical workweek is 40 hours – five days a week, eight hours a day. However, definitions vary. Some employers see 37.5 hours as full-time, accounting for a 30-minute lunch daily, while for others, 35 hours, including a one-hour lunch, is full-time. Though the common benchmark is 40 hours, other factors might influence this number.
Benefits of working full-time
Eligibility for benefits such as health and dental insurance.
Access to paid vacation and sick days.
Generally, there is more job security compared to part-time roles.
A routine that offers a structured lifestyle.
What perks come with full-time work? Often, full-time positions come with:
Paid vacations.
Sick leave.
Health and dental insurance.
Retirement plans with matching contributions.
Stock ownership opportunities.
Beyond federal requirements, companies can customize their benefit packages.
How is full-time defined by employers?
In the US, most employers see 40 hours a week as full-time. But, some base it on shifts rather than hours, which is less usual.
The IRS provides guidance on this. A full-time employee, according to them, works at least 30 hours weekly or 130 hours monthly. They suggest two methods to assess this:
Monthly measurement – check if an employee's service reaches 130 hours every month.
Look-back measurement – evaluate an employee's status during a "stability period" based on their service hours in the prior "measurement period."
What about salaried workers?
Usually, salaried employees work a minimum of 40 hours weekly. However, the Fair Labor Standards Act (FLSA) doesn't specify full-time for them, allowing employers to set their criteria. Some salaried roles, due to their specialized nature, are exempt from typical hourly tracking and overtime rules under the FLSA.
Even if deemed full-time, an employee might not get all the perks. A worker putting in 35 hours might miss out on health benefits if the company's threshold is 40 hours.
Notably, in the European Union, the Working Time Directive caps the average working week at 48 hours. Yet, individual countries can have variations. For instance, France's standard workweek is 35 hours.
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As your outstaffing partner, MWDN analyzes the norms of full-time hours and full-time employee benefits in countries where you hire to make sure that your dedicated developers work according to your agreement and get all the benefits they deserve based on their type of employment.
Gross income
The concept of "gross income" can differ slightly in its composition and definition across countries, primarily because of differences in taxation structures, income reporting standards, and cultural variations in what is considered taxable income.
In essence, while the general idea of gross income—as the total income earned before any deductions or taxes—are somewhat universal, the specifics can vary based on a myriad of factors rooted in a country's legal, economic, and cultural landscape.
For individuals, gross income signifies their earnings before any taxes or other deductions. This can include wages, interest, dividends, pensions, and rent.
For businesses, gross income, also termed as gross profit or margin, is the revenue minus the cost of goods sold (COGS).
Breaking down gross income
Individuals. Apart from wages, gross income encompasses pensions, interest, dividends, and rent. It's the foundation for tax returns. After accounting for deductions and exemptions, the result is the adjusted gross income (AGI), which then helps calculate taxable income.
Businesses. Gross income is obtained by deducting COGS from total revenue. It gives a snapshot of a product's performance and the company's overall profitability. Typically, this figure appears on a company's income statement.
Gross income vs net income
Gross income and net income are two fundamental financial terms that are often used in the context of individual earnings and business finances. While we explained what gross income is for individuals and businesses, here is a couple of words about net income.
Net income for individuals is the amount of money an individual takes home after all deductions have been accounted for. It's often called "take-home pay" or "net pay." This is the money an individual has available to spend, save, or invest.
Net income for businesses is the total profit remaining after all expenses have been deducted from the gross income. This includes operating expenses, interest, taxes, and other relevant costs. Net income gives a comprehensive view of a company's profitability over a specified period.
In essence, while gross income provides an initial understanding of earning potential, net income offers a clearer picture of actual earnings (for individuals) or profitability (for businesses) after all expenses and deductions are considered.
Calculating gross income for individuals
For individuals, gross income encompasses all of their earnings before any deductions or expenses are subtracted.
Wages and salaries. Begin with the total amount earned from work. This includes hourly wages, salaries, overtime, bonuses, and commissions. For those who receive regular paychecks, the gross income will often be listed as the total amount before taxes and other deductions.
Self-employment and freelance income. For those who are self-employed or freelance, gross income is determined by taking the total revenue from goods sold or services provided and then subtracting any direct business expenses, like the cost of goods sold. It does not account for other business expenses like marketing, utilities, or rent.
Rental income. If you earn money from renting out a property, add the total amount you receive from tenants. Don't deduct expenses like mortgage interest or maintenance costs at this point.
Dividends and interest. Include any dividends from stocks or interest from savings accounts, CDs, or other financial investments.
Retirement distributions. Include any money taken out from retirement accounts, unless it's a return of contributions from a Roth IRA, which is not taxable.
Alimony and child support. If you receive alimony or child support, this may also be included, though the rules can vary depending on jurisdiction.
Other income. Include any other sources of income, such as lottery winnings, gains from the sale of assets, or cash prizes.
Sum up all of the above components to arrive at your total gross income. After summing these, subtract tax deductions to get AGI. In the US, this total is typically reported on the W-2 or 1099 form.
Note that some incomes, like inheritance or social security benefits, aren't taxable. What’s more, the specific components of gross income and whether certain types of income are taxable can vary based on the country's tax laws and regulations where the individual resides.
Calculating gross income for businesses
Calculating gross income for a business is distinct from calculating it for individuals. For a business, gross income represents the total sales revenue minus the cost of goods sold (COGS). Here's how you can determine it:
Begin with the total revenue from all sales. This is the total amount of money brought in from selling products or services before any expenses are deducted.
Determine the Cost of Goods Sold. COGS represents the direct costs associated with the production of the goods sold by a company. This includes raw materials, direct labor, and other direct costs but does not include indirect expenses such as sales, marketing, and distribution.
For retailers or wholesalers, COGS includes the cost of inventory that was sold during the period. For manufacturers, it includes raw material costs, labor costs, and manufacturing overhead.
COGS can be determined using the formula “COGS=Beginning Inventory+Purchases−Ending Inventory”
Once you have both figures, subtract the COGS from the total sales revenue:
Gross Income=Total Sales Revenue−COGS
The result is the gross income or gross profit. This number gives an idea of how efficiently a business is producing its goods. It doesn't account for other operating expenses, taxes, or interest.
For example: If a company has total sales of $500,000 and COGS of $300,000, its gross income is $200,000.
Calculating monthly gross income
If you’re an individual, check your pay stub for pre-tax monthly earnings. For hourly workers, multiply the hourly rate by monthly hours. You can also divide the annual salary by 12. This method is relevant for employees, freelancers, and contractors. Remember to consider other earnings, like from investments or side jobs.
If you’re a business, use gross income = Gross revenue - COGS, focusing on monthly data.
Gross-to-Net (GTN)
Gross-to-Net is a financial calculation that delineates the transformation of an individual's or entity's gross income, which represents the total earnings or revenue generated before any deductions or adjustments, into net income, which signifies the actual amount of money retained after factoring in various deductions, taxes, contributions, and expenses.
This process is crucial for assessing the true financial impact of income, considering the multitude of financial obligations and regulatory requirements that may affect the final disposable income or profit. Gross-to-Net calculations encompass a range of deductions, including but not limited to income taxes, social security contributions, healthcare expenses, insurance premiums, retirement fund contributions, and other fiscal and operational outlays, ultimately yielding a precise representation of one's net financial position. This financial analysis is integral to both individual financial planning and business financial management, facilitating an accurate assessment of available resources and liabilities.
Ten reasons why GTN calculations are important
Financial planning. GTN calculations help individuals and businesses plan their finances effectively. They can budget and allocate resources accordingly by understanding how much of their gross income or revenue will be deducted for taxes, contributions, and other expenses.
Tax compliance. Accurate GTN calculations are essential for complying with tax laws and regulations. Failing to calculate and pay the correct amount of taxes can result in penalties, fines, and legal consequences. GTN ensures that the appropriate taxes are withheld or paid.
Legal requirements. In many countries, there are legal obligations to deduct and contribute to social security, healthcare, and other programs. GTN ensures that these obligations are met, helping individuals and businesses stay in compliance with the law.
Employee compensation. For employers, GTN is crucial for accurately calculating employees' take-home pay. It ensures that employees receive the correct amount of compensation after all deductions and contributions are accounted for, which is essential for employee satisfaction and retention.
Financial transparency. Businesses must often report their financial results to investors, shareholders, and regulatory authorities. Accurate GTN calculations provide transparency by showing how gross revenues are transformed into net profits, allowing stakeholders to assess the company's financial health.
Budgeting and cost management. For businesses, GTN calculations are essential for budgeting and cost management. They help estimate the costs of employing staff, including salaries, benefits, and taxes, which is vital for maintaining profitability.
Retirement and benefits planning. Individuals and businesses use GTN calculations to plan for retirement and other benefits. Contributions to retirement funds, healthcare plans, and other employee benefits are typically deducted from gross income, affecting an individual's or company's long-term financial security.
Investment decisions. Investors and financial analysts rely on GTN calculations to assess the profitability of investments. Accurate net income figures help evaluate investment opportunities' potential returns and risks.
Economic analysis. Economists and policymakers use GTN calculations to analyze the impact of taxation and social programs on the economy. It helps make informed decisions about tax policies, social spending, and economic growth strategies.
Cross-border transactions. In the case of international business and cross-border transactions, GTN calculations ensure that taxes and other obligations are properly accounted for in compliance with local and international tax laws.
GTN in different countries
Gross-to-Net calculations can vary significantly among different countries due to variations in tax systems, social security programs, deductions, and regulations. Here's a general overview of how GTN differs in the US, EU, Ukraine, China, and India.
US
In the US, Gross-to-Net calculations involve federal income tax, state income tax, Social Security (FICA) and Medicare taxes, and potentially local taxes. Deductions and credits can include items like mortgage interest, student loan interest, and charitable contributions. The US also has a progressive income tax system, where higher earners pay a higher percentage of their income in taxes.
European Union members
EU member countries each have their own tax systems and social security programs. Income taxes are generally levied at both the national and local levels. The EU also has rules that allow for the free movement of workers and coordination of social security benefits across member states.
Ukraine
In Ukraine, the GTN calculation involves deductions and contributions that are applied to an individual's or business's gross income to determine their net income. Among the key details about Gross-to-Net in Ukraine are:
Personal income tax. The tax rates generally range from 5% to 18% or more for higher-income individuals.
Social security contributions. In Ukraine, employees and employers must make social security contributions. These contributions fund pensions and healthcare. Social security contributions are typically withheld from an employee's salary by the employer.
Healthcare contributions. Ukraine also has a separate healthcare contribution that is deducted from an individual's gross income. Like social security contributions, healthcare contributions are calculated as a percentage of income. The funds collected from healthcare contributions go toward financing the country's healthcare system.
Local taxes. Depending on the location within Ukraine, individuals and businesses may be subject to local taxes, which can further reduce net income.
Deductions and exemptions. Ukraine allows for various deductions and exemptions. These may include deductions for education expenses, mortgage interest, and contributions to certain retirement savings plans.
China
In China, GTN calculations involve national and local income taxes, as well as social security contributions. The tax rates can vary depending on income levels and the region where the income is earned. China has specific deductions and allowances, and the tax system may offer preferential tax rates to certain industries or activities.
India
India has a progressive income tax system with various income slabs and corresponding tax rates. Deductions and exemptions are available for items such as home loan interest, education expenses, and charitable donations. Social security in India includes schemes like the Employee Provident Fund (EPF) and Employee State Insurance (ESI).
Examples of deductions (US legislation)
Federal Income Tax – Depends on the employee's earnings, tax bracket, filing status, and dependents. Employers must withhold and remit this tax to the IRS.
State Income Tax – Varies based on the employee's location and similar factors as federal tax.
FICA – Includes Social Security and Medicare taxes. Funds retirement, disability, and medical benefits.
Health Insurance – Varies based on the chosen plan and coverage level. It's a pre-tax deduction.
Retirement Contributions – Can be for 401(k) or IRA, often matched by employers.
Union Dues – Supports union activities; the amount is determined by the union agreement.
Wage Garnishments – Court-ordered deductions to pay debts like child support, taxes, or student loans.
Calculating Gross-to-Net
Subtract all deductions from the gross salary to get the net pay.
Example: An employee with a bi-weekly gross pay of $2,500 has total deductions of $700 (taxes, FICA, insurance). The net pay would be $2,500 - $700 = $1,800.
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Internet of Things (IoT)
The Internet of Things (IoT) is a network of physical objects embedded with sensors, software, and other technologies that connect and exchange data with other devices and systems over the Internet. This enables autonomous operation, real-time monitoring, and data collection to improve efficiency and enable new services.
IoT represents a transformative phase in the digital revolution, marking the convergence of the physical and digital worlds. It encompasses a vast network of connected devices, from everyday household items to sophisticated industrial tools, all communicating and exchanging data.
How does IoT connect the physical with the digital?
The core principle of the IoT lies in connecting physical objects to the internet through embedded sensors, software, and other technologies. These "things" – ranging from wearables and smart appliances to industrial machinery and even agricultural sensors – can then collect, transmit, and analyze data, fostering real-time communication and automated actions. Here is how exactly everything happens:
Physical to digital
Sensors and actuators. Physical devices are equipped with sensors that gather data about their environment (temperature, pressure, motion, etc.). Actuators, which can be controlled digitally to perform actions in the physical world (turning on lights, adjusting thermostats, opening valves), are also used.
Data acquisition and conversion. Sensor data is collected and converted into digital signals that can be understood by computers. This may involve analog-to-digital converters (ADCs) for continuous data or digital signal processing (DSP) techniques for complex signals.
Communication protocols. Devices communicate with each other and gateways using standardized protocols like Wi-Fi, Bluetooth, Zigbee, or cellular networks. These protocols define how data is formatted, transmitted, and received.
Digital to physical
Data processing and analysis. The collected data is sent to cloud platforms or local processing units. Here, the data is analyzed, filtered, and aggregated to extract meaningful insights.
Decision-making and control. Based on the analyzed data, automated decisions can be made. This could involve sending commands to actuators to control physical devices or triggering pre-programmed actions.
User interfaces and feedback. Users can interact with the IoT system through mobile apps, dashboards, or voice assistants. This allows for monitoring system performance, issuing commands, and receiving feedback from connected devices.
Key technical components
Embedded systems. Small, low-power computers are embedded within devices, allowing them to collect data, communicate, and perform basic processing tasks.
Connectivity infrastructure. Networks like Wi-Fi, cellular, or specialized low-power wide-area networks are crucial for data transmission between devices and gateways.
Cloud platforms. Cloud computing offers centralized data storage, processing power, and analytics capabilities to manage large-scale IoT deployments.
Security measures. Robust security protocols are essential to protect data privacy, ensure device authentication, and prevent unauthorized access to the network.
Applications of IoT
The applications of the IoT are far-reaching and constantly evolving, impacting various aspects of our lives. Here are 10 prominent examples:
Smart homes. Thermostats that adjust the temperature based on your habits (Nest by Google).
Wearable fitness trackers. Monitor activity, heart rate, and sleep patterns (Fitbit).
Smart appliances. Refrigerators that reorder groceries when supplies run low (Samsung Family Hub).
Connected cars. Provide real-time traffic updates and remote diagnostics (OnStar by General Motors).
Industrial asset tracking. Sensors monitor the location and condition of equipment in factories (Honeywell).
Precision agriculture. Sensors optimize irrigation and fertilizer using real-time soil data (John Deere).
Smart cities. Traffic lights adjust based on congestion, and waste bins indicate fullness (Siemens).
Remote patient monitoring. Track vitals and health data for elderly or chronically ill patients (Philips).
Retail inventory management. Monitor stock levels and automate reordering for optimal inventory control (Amazon Go stores).
Connected security systems. Cameras and sensors provide real-time security monitoring and alerts (Ajax).
How do we safeguard the connected world?
While the potential benefits of the IoT are undeniable, security concerns remain a pressing issue. As more devices become interconnected, the potential attack surface expands, making them vulnerable to hacking and data breaches. What security challenges associated with the IoT do we face today?
Device vulnerability. Many IoT devices have weak security protections, making them easy targets for hacking and malware attacks.
Data privacy. The vast amount of data collected by IoT devices can include sensitive personal information, raising significant privacy concerns if not properly protected.
Network security. IoT devices can serve as entry points to wider networks, potentially allowing attackers to access critical systems and data.
Software updates. Some IoT devices lack the capability for automatic updates, leaving known vulnerabilities unpatched.
Lack of standardization. The IoT industry lacks uniform security standards, leading to inconsistent security practices and increased risk.
DDoS attacks. IoT devices can be hijacked to form botnets, which are then used to launch DDoS attacks, overwhelming networks with traffic.
By implementing robust security measures, using strong encryption, and keeping devices updated, the risks associated with IoT can be mitigated. Among companies working on improving IoT security are:
The Internet of Things Security Foundation (IoTSF) – a global industry consortium focused on developing best practices and standards for IoT security.
The Open Web Application Security Project (OWASP) – provides resources and guidance on securing web applications, which can be relevant to some IoT devices, and
National Institute of Standards and Technology (NIST) – develops cybersecurity frameworks and recommendations that can be applied to IoT deployments.
The future of the connected world
The IoT is here to stay, shaping a future where the physical and digital worlds converge seamlessly. By embracing its potential, addressing security concerns, and fostering responsible development, we can ensure that the IoT serves humanity and paves the way for a more sustainable and interconnected future.
As we move forward, we should remember that the true power of the IoT lies not just in connecting things, but also in connecting people and fostering collaboration to build a brighter future for all.
IRS form 1099-MISC
The IRS, or the Internal Revenue Service, is the tax collection agency of the United States federal government. Form 1099-MISC is a U.S. tax document used to report certain payments above $600 to the IRS. Its name, "MISC," stands for miscellaneous information.
What is the purpose of 1099-MISC?
This form captures various income types not coming from standard wages. It's sometimes called the "catch-all of tax documents." Businesses send this type of financial data to the IRS to record:
Rent payments. For space or equipment.
Prizes. Such as from lotteries or fantasy sports.
Medical payments. Including social security and medical care.
General income. Like insurance proceeds or study payments.
Payments to lawyers.
Notional principal contract payments.
Fishing proceeds.
Royalties. Minimum of $10.
Direct sales earnings. Above $5,000.
Exceptions to the $600 rule
Sometimes, 1099-MISC is required even if payments are below $600. Here are the examples.
Royalties. For property use, including intellectual rights, if over $10.
Backup withholding. When a court orders money withholding.
Excess golden parachute payments. Over-compensating employees.
1099-MISC vs 1099-NEC
Businesses no longer use 1099-MISC for independent contractor payments. Since 2020, payments above $600 to freelancers are recorded on Form 1099-NEC. The main difference is the deadline and box where nonemployee compensation is recorded. For years prior to 2020, businesses used the old 1099-MISC for these payments.
Who should file 1099-MISC?
Entities like small to large businesses, pension trusts, and non-exempt farmers' cooperatives utilize this form to document the funds they transfer to third parties within a year.
Filling out form 1099-MISC
First, get a completed Form W-9 from the payee. The form has multiple copies, each for different recipients like the IRS, state tax department, and the payee. Key sections are the boxes indicating payment types. There's also a checkbox for foreign asset reporting under FATCA (Foreign Account Tax Compliance Act).
How to submit 1099-MISC?
To the Recipient – mail it, or with permission, send it electronically.
To the IRS – use the IRS FIRE system for online submission. For less than 250 forms, you can mail using scannable templates and Form 1096 from the IRS website.
Submission deadline
To the recipient – January 31st.
To the IRS – February 28 (paper) and March 31 (electronically).
Penalties
Late or incorrect 1099-MISC filings may incur fines. Extensions are possible via Form 8809.
Reporting 1099-MISC on tax returns
Typically, income from box 3 goes to the "Other income" on Form 1040.
For employees getting 1099-MISC
If you're an employee and received a 1099-MISC, you should've received a W-2 instead. Consult your employer to negotiate the misunderstanding.
For independent contractors
You'll likely receive a 1099-NEC. But there are other tax forms you might get, such as:
1099-G. It is used for tax refunds and government income.
1099-B. It covers income from securities sales or online bartering.
1099-LTC. This form is responsible for health and sudden-death insurance payments.
1099-R. You may get it for pension, retirement, or disability payments.
1099-DIV and 1099-INT. These forms cover dividends and interest.
1099-K. This form is used for income via payment processors.
1099-S. It covers property sales or exchanges.
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This is a simplified summary of 1099-MISC, its practices, and rules. To avoid misunderstandings or miscalculations, consult tax guidelines or a professional when dealing with IRS forms.
IRS Form W-4
The W-4 form, officially titled "Employee's Withholding Certificate," is a form used in the United States that employees fill out to tell their employers how much federal income tax to withhold from their paychecks. The form is provided by the Internal Revenue Service (IRS).
Purpose of Form W-4
Whenever you start a new job or switch positions, you'll need to fill out Form W-4. This form tells your employer how much tax to deduct based on your expected earnings and other personal details. It's vital to be accurate to avoid
Overpaying and lending money to the government.
Underpaying and facing a large tax bill with possible penalties later.
Recent changes to Form W-4
The Form W-4 underwent significant changes in 2020. These changes were implemented to make the process of specifying withholding more accurate and user-friendly, and they reflect adjustments made in response to the Tax Cuts and Jobs Act of 2017. Here are some of the key changes that were introduced:
Removal of allowances. Prior versions of the W-4 used a system of "allowances" tied to the personal exemption to help determine withholding amounts. Since the Tax Cuts and Jobs Act eliminated personal exemptions, the 2020 W-4 no longer uses this allowances system.
Introduction of a five-step process. The redesigned W-4 introduced a five-step process for indicating how much tax should be withheld. Only Steps 1 and 5 (entering personal information and signing the form) are mandatory. The other steps are optional, but providing this additional information will result in more accurate withholding.
Multiple jobs and working spouses. The new W-4 includes a dedicated section for indicating if a person holds more than one job or if they have a working spouse. This adjustment is to ensure that the right amount of tax is withheld when there's more than one income source in a household.
Claiming dependents. The form has a section where taxpayers can factor in the tax credits they expect to claim for dependents.
Other adjustments and extra withholding. The redesigned form allows for other income (not from jobs), deductions other than the standard deduction, and any extra withholding an employee wants.
New publication and worksheet. The IRS introduced Publication 15-T, which includes worksheets that employers can use alongside the new W-4 to calculate withholding. This was necessary due to the significant changes in the form's design.
Existing employees and the new form. Employees who had already submitted a W-4 in a previous year were not required to submit a new W-4. Employers continued to calculate withholding based on the previously submitted form. However, any new hires or employees who wanted to make adjustments after 2019 were required to use the new form.
Frequency of submission
While the IRS suggests updating Form W-4 annually, it's not mandatory unless there are significant changes in your life, such as a new job, marriage, divorce, or the birth of a child.
How to complete form W-4?
Step 1 → Provide personal details like your name, address, social security number, and marital status.
Step 2 → Mention if you have multiple jobs or if you and your spouse are both employed.
Step 3 → Parents can indicate if they qualify for child tax credits.
Step 4 → Detail any extra deductions or additional tax to be withheld.
Step 5 → Review, sign, and date the form.
Notes:
New employees filling out the W-4 for the first time must complete Steps 1 and 5 at a minimum.
Current employees updating their W-4 can fill out only the sections requiring updates. For instance, if you simply want to adjust the additional withholding amount, you can fill out Steps 1 and 4(c), and then sign the form.
If you're uncertain about any aspect of the form, consider using the IRS's Tax Withholding Estimator tool. It provides a detailed guide through each section based on your individual financial situation.
Always consult with a tax professional if you're unsure about how to complete the form, especially if you have complex financial situations such as multiple sources of income, large amounts of non-wage income, or significant deductions.
What’s the difference between W-4 and W-2 forms?
Form W-2, sent annually by employers to both the employee and IRS, details the employee's total wages and deducted taxes. The W-4 is retained by the employer, while the W-2 is submitted to the IRS.
In other words, the W-4 is a tool for employees to communicate their tax situation to employers for accurate tax withholding, while the W-2 is an annual summary of wages earned and taxes withheld, which is crucial for tax filing.
Miscellaneous
Using technology for accuracy. The IRS recommends using their online Tax Withholding Estimator for precise withholding calculations.
Processing time for new W-4. New forms typically impact your next paycheck, but existing employees may need to wait up to 30 days after submitting an updated form.
If no W-4 is provided. If an employee doesn't provide a W-4, employers will classify them as a single filer with no allowances.
Accessing form W-4. The 2023 version of Form W-4 is available on the IRS website. Always use the most recent form available.
Requirement to update in 2023. Employees aren't required to submit a new form in 2023 unless they have changes to report. Employers can request an update, but if the employee declines, the last submitted form will be used for tax calculations.
IT staffing
IT staffing refers to the process of hiring skilled professionals to fulfill technical roles within your company. Depending on your needs, it can involve temporary, part-time, or full-time placements. IT staffing vendors and IT recruiting agencies can help you find candidates with the right expertise for roles such as software developers, cybersecurity analysts, data scientists, and many more.
How it was vs How it is in 2025
IT staffing began gaining popularity in the 1990s with the expansion of the technology industry. The demand for specialized roles in programming and system management outpaced the ability of many companies to hire internally. By the early 2000s, IT staffing became a distinct sector within the broader staffing industry.
Today, IT staffing is a global industry that supports the US staffing market of $207 billion. The IT sector accounts for a significant portion of this, valued at over $43 billion annually in the US alone. Approximately 92% of large corporations globally rely on IT outsourcing or staffing solutions to meet their technological needs.
Flexible work models, remote hiring, and advanced tools like AI for talent sourcing have revolutionized IT staffing. Agencies and IT vendors increasingly focus on providing top-tier specialists and assembling cohesive teams that can contribute to long-term projects.
Key tools and practices of IT staffing
As the demand for skilled IT professionals grows, efficient staffing becomes more important. Companies need the right tools and practices to make faster and more accurate hiring decisions to remain competitive and simplify recruitment.
Below are some of the most useful solutions available today, each designed to improve different stages of the recruitment process—from sourcing and assessing talent to managing candidate relationships and facilitating communication.
Try out these tools to speed up hiring, improve the quality of your teams, and achieve better recruitment results.
1. Categorized candidate databases
Organizing talent pools by skills, experience, and location helps recruiters and vendors locate profiles that match specific roles, reducing time-to-hire. This segmentation also enables targeted searches for candidates with niche expertise, enhancing the quality of hires. Additionally, it can help identify candidates for future roles and ensure long-term talent availability.
2. Talent matching tools
AI-powered platforms analyze job requirements and candidate profiles to recommend the most suitable candidates. These tools assess technical skills and other factors like experience, career goals, and cultural fit, which improves decision-making accuracy. Automating the match process saves time and reduces human bias, which leads to better hiring outcomes.
3. Chat platform and user support
Integrated chat tools provide real-time communication between recruiters, clients, and candidates, improving responsiveness and interaction quality. These platforms also allow recruiters to resolve queries quickly, which is especially useful in fast-paced hiring environments. Features like automated scheduling and follow-up reminders further streamline the recruitment process.
4. Skill assessment platforms
These platforms offer technical challenges or coding tests to evaluate a candidate’s abilities in real-world scenarios and ensure they meet role-specific demands. Solutions like Codility or HackerRank can assess proficiency in programming languages, problem-solving, and algorithm design and objectively evaluate candidates’ technical skills. They also help reduce hiring mistakes by verifying a candidate’s actual capabilities before hiring.
5. Applicant tracking systems
ATS solutions centralize job postings, applications, and candidate data, simplifying recruitment workflows. Tools like Greenhouse or Lever help recruiters track candidates’ progress, schedule interviews, and manage feedback all in one platform. They also support automated resume parsing and candidate screening, accelerating the hiring process while ensuring no candidate is overlooked.
6. Candidate relationship management tools
CRM tools manage long-term relationships with candidates and maintain an active pipeline for future hiring needs. By nurturing ongoing communication and providing tailored content, platforms like Beamery or Avature help keep candidates engaged, even when there are no immediate openings. This proactive approach can significantly reduce time-to-fill when new roles arise and improve candidate retention rates.
7. AI-powered talent matching
These AI-driven platforms match job openings with candidates based on data-driven analysis of skills, experience, and cultural fit. Tools such as Eightfold AI and SeekOut offer deep learning algorithms that evaluate candidate profiles holistically and lead to more precise job matches. These systems also help predict future talent needs based on workforce trends, optimizing long-term hiring strategies.
8. Remote interview and collaboration platforms
Remote interview tools like CodeSignal and CoderPad help with virtual interactions, including live coding assessments and team collaboration. These platforms are essential to evaluate candidates remotely, especially in a hybrid or fully remote work environment. Features like screen sharing, real-time feedback, and technical challenges make assessing a candidate’s skills and teamwork abilities easier in a realistic setting.
Benefits and challenges of IT staffing
IT staffing offers many benefits that make it a popular solution for businesses. It is cost-effective because companies only pay for the skills they need, avoiding expenses like training, benefits, or infrastructure for full-time employees. It also provides access to specialized expertise, which helps you to access people with niche skill sets that might not be available locally.
Pre-vetted talent pools from staffing agencies speed up the hiring process and ensure projects stay on track. Additionally, staff augmentation vendors and other staffing agencies take care of payroll, legal compliance, and administrative tasks, which eases the burden on the client.
However, there are challenges. Ensuring temporary or remote workers align with a company’s culture can be difficult, potentially impacting team dynamics. The nature of short-term roles or perceived job instability can lead to higher turnover rates. In some cases, agencies may provide talent that doesn’t meet quality standards, requiring extra effort in vetting candidates. Communication can also be an issue, especially when dealing with global teams, where language differences and time zone mismatches can hinder collaboration. Over-reliance on staffing agencies creates risks if the partnership dissolves or if the agency fails to deliver.
Balancing these benefits and challenges requires choosing the right IT staffing partner and setting clear expectations. With proper planning and a reliable partner, IT staffing can be an effective way to achieve project goals while maintaining flexibility.
Comparison of IT staffing models
Different IT staffing models address various business needs – they offer flexibility, cost efficiency, or long-term reliability. Here's an overview of the five most popular models.
Staff augmentation adds skilled IT professionals temporarily to an in-house team. This model suits short-term projects, skill shortages, or scaling teams during peak demand. For example, a startup may need a data scientist for a six-month AI project. Advantages include quick access to talent, no long-term commitment, and the ability to retain control over the project. Challenges include needing strong management for integration and creating dependency on external resources.
Dedicated development teams are remote teams fully focused on a client's projects, acting as an extension of the in-house staff. This model works well for long-term development needs, ongoing product evolution, or startups aiming to scale quickly. A fintech company might partner with a staffing agency to build a secure payment gateway with a team of nine developers. The model's benefits include full project focus, deep integration into company culture and goals, and cost savings compared to building an in-house team. Challenges include the need for long-term planning, management, and potential communication issues across time zones.
Managed services involves a vendor taking full ownership of a project or service, including team management and delivery. This model suits companies wanting to outsource non-core functions like IT support or maintenance. For instance, a retail company might outsource cloud migration to an IT service provider. Advantages include a hands-off approach for the client, predictable costs with service-level agreements, and access to end-to-end solutions. However, it offers less control over the process and relies heavily on the vendor’s expertise.
Freelancers are independent professionals hired for specific tasks or projects, typically for small-scale, well-defined jobs or one-off tasks. For example, a business might hire a graphic designer for a website redesign. Freelancers are cost-effective for small tasks and provide hiring flexibility, but they come with limited accountability and no long-term commitment to the project.
In-house hiring involves recruiting full-time employees as part of the internal team. This model suits core business operations requiring ongoing involvement, like when an e-commerce platform hires in-house DevOps engineers. Benefits include complete control over the team and project and alignment with company culture. However, it incurs high costs for salaries, benefits, and infrastructure, and the hiring process can be lengthy.
Summing up
Choosing the right IT staffing model depends on your project's complexity, duration, and budget. Staff augmentation is ideal for companies needing immediate support for specific tasks, while dedicated teams work well for scaling startups or long-term projects. Managed services help streamline non-core functions. Companies can also combine models—for example, adding dedicated remote developers to an in-house team during peak workloads.
Machine learning
Machine learning (ML) is a subset of artificial intelligence (AI) that enables systems to learn and improve from experience without being explicitly programmed. It involves the development of algorithms that can analyze and learn from data, making decisions or predictions based on this data.
Common misconceptions about machine learning
ML is the same as AI. In reality, ML is a subset of AI. While AI is the broader concept of machines being able to carry out tasks in a way that we would consider “smart,” ML is a specific application of AI where machines can learn from data.
ML can learn and adapt on its own. In reality, ML models do learn from data, but they don't adapt or evolve autonomously. They operate and make predictions within the boundaries of their programming and the data they are trained on. Human intervention is often required to update or tweak models.
ML eliminates the need for human workers. In reality, while ML can automate certain tasks, it works best when complementing human skills and decision-making. It's a tool to enhance productivity and efficiency, not a replacement for the human workforce.
ML is only about building algorithms. In reality, algorithm design is a part of ML, but it also involves data preparation, feature selection, model training and testing, and deployment. It's a multi-faceted process that goes beyond just algorithms.
ML is infallible and unbiased. In reality, ML models can inherit biases present in the training data, leading to biased or flawed outcomes. Ensuring data quality and diversity is critical to minimize bias.
ML works with any kind of data. In reality, ML requires quality data. Garbage in, garbage out – if the input data is poor, the model's predictions will be unreliable. Data preprocessing is a vital step in ML.
ML models are always transparent and explainable. In reality, some complex models, like deep learning networks, can be "black boxes," making it hard to understand exactly how they arrive at a decision.
ML can make its own decisions. In reality, ML models can provide predictions or classifications based on data, but they don't "decide" in the human sense. They follow programmed instructions and cannot exercise judgment or understanding.
ML is only for tech companies. In reality, ML has applications across various industries – healthcare, finance, retail, manufacturing, and more. It's not limited to tech companies.
ML is a recent development. In reality, while ML has gained prominence recently due to technological advancements, its foundations were laid decades ago. The field has been evolving over a significant period.
Building blocks of machine learning
We can state that machine learning consists of certain blocks, like algorithms and data. What is their role exactly?
Algorithms are the rules or instructions followed by ML models to learn from data. They can be as simple as linear regression or as complex as deep learning neural networks. Some of the popular algorithms include:
Linear regression – used for predicting a continuous value.
Logistic regression – used for binary classification tasks (e.g., spam detection).
Decision trees – A model that makes decisions based on branching rules.
Random forest – An ensemble of decision trees typically used for classification problems.
Support vector machines – Effective in high dimensional spaces, used for classification and regression tasks.
Neural networks – A set of algorithms modeled after the human brain, used in deep learning for complex tasks like image and speech recognition.
K-means clustering – An unsupervised algorithm used to group data into clusters.
Gradient boosting machines – Builds models in a stage-wise fashion; it's a powerful technique for building predictive models.
An ML model is what you get when you train an algorithm with data. It's the output that can make predictions or decisions based on new input data. Different types of models include decision trees, support vector machines, and neural networks.
What’s the role of data in machine learning?
Data collection. The process of gathering information relevant to the problem you're trying to solve. This data can come from various sources and needs to be relevant and substantial enough to train models effectively.
Data processing. This involves cleaning and transforming the collected data into a format suitable for training ML models. It includes handling missing values, normalizing or scaling data, and encoding categorical variables.
Data usage. The processed data is then used for training, testing, and validating the ML models. Data is crucial in every step – from understanding the problem to fine-tuning the model for better accuracy.
Tools and technologies commonly used in ML
Python and R are the most popular due to their robust libraries and frameworks specifically designed for ML (like Scikit-learn, TensorFlow, and PyTorch for Python).
Data Analysis Tools: Pandas, NumPy, and Matplotlib in Python are essential for data manipulation and visualization.
Machine Learning Frameworks: TensorFlow, PyTorch, and Keras are widely used for building and training complex models, especially in deep learning.
Cloud Platforms: AWS, Google Cloud, and Azure offer ML services that provide scalable computing power and storage, along with various ML tools and APIs.
Big Data Technologies: Tools like Apache Hadoop and Spark are crucial when dealing with large datasets that are typical in ML applications.
Automated Machine Learning (AutoML): Platforms like Google's AutoML provide tools to automate the process of applying machine learning to real-world problems, making it more accessible.
Three types of ML
Machine Learning (ML) can be broadly categorized into three main types: Supervised learning, Unsupervised learning, and Reinforcement learning. Let's explore them with examples
Supervised learning
In supervised learning, the algorithm learns from labeled training data, helping to predict outcomes or classify data into groups. For example:
Email spam filtering. Classifying emails as “spam” or “not spam” based on distinguishing features in the data.
Credit scoring. Assessing credit worthiness of applicants by training on historical data where the credit score outcomes are known.
Medical diagnosis. Using patient data to predict the presence or absence of a disease.
Unsupervised learning
Unsupervised learning involves training on data without labeled outcomes. The algorithm tries to identify patterns and structures in the data. Real-world examples:
Market basket analysis. Identifying patterns in consumer purchasing by grouping products frequently bought together.
Social network analysis. Detecting communities or groups within a social network based on interactions or connections.
Anomaly detection in network traffic. Identifying unusual patterns that could signify network breaches or cyberattacks.
Reinforcement learning
Reinforcement learning is about taking suitable actions to maximize reward in a particular situation. It is employed by various software and machines to find the best possible behavior or path in a specific context. These are some examples:
Autonomous vehicles. Cars learn to drive by themselves through trial and error, with sensors providing feedback.
Robotics in manufacturing. Robots learn to perform tasks like assembling with increasing efficiency and precision.
Game AI. Algorithms that learn to play and improve at games like chess or Go by playing numerous games against themselves or other opponents.
How do we use ML in real life?
Predictive analytics is used in sales forecasting, risk assessment, and customer segmentation.
Customer service. Chatbots and virtual assistants powered by ML can handle customer inquiries efficiently.
Fraud detection. ML algorithms can analyze transaction patterns to identify and prevent fraudulent activities.
Supply chain optimization. Predictive models can forecast inventory needs and optimize supply chains.
Personalization. In marketing, ML can be used for personalized recommendations and targeted advertising.
Human resources. Automating candidate screening and using predictive models to identify potential successful hires.
Predicting patient outcomes in healthcare
Researchers at Beth Israel Deaconess Medical Center used ML to predict the mortality risk of patients in intensive care units. By analyzing medical data like vital signs, lab results, and notes, the ML model could predict patient outcomes with high accuracy.
This application of ML aids doctors in making critical treatment decisions and allocating resources more effectively, potentially saving lives.
Fraud detection in finance and banking
JPMorgan Chase implemented an ML system to detect fraudulent transactions. The system analyzes patterns in large datasets of transactions to identify potentially fraudulent activities.
The ML model helps in reducing financial losses due to fraud and enhances the security of customer transactions.
Personalized shopping experiences in retail
Amazon uses ML algorithms for its recommendation system, which suggests products to customers based on their browsing and purchasing history.
This personalized shopping experience increases customer satisfaction and loyalty, and also boosts sales by suggesting relevant products that customers are more likely to purchase.
Predictive maintenance in manufacturing
Airbus implemented ML algorithms to predict failures in aircraft components. By analyzing data from various sensors on planes, they can predict when parts need maintenance before they fail.
This approach minimizes downtime, reduces maintenance costs, and improves safety.
Precision farming in agriculture
John Deere uses ML to provide farmers with insights about planting, crop care, and harvesting, using data from field sensors and satellite imagery.
This information helps farmers make better decisions, leading to increased crop yields and more efficient farming practices.
Autonomous driving in automotive
Tesla's Autopilot system uses ML to enable semi-autonomous driving. The system processes data from cameras, radar, and sensors to make real-time driving decisions.
While still in development, this technology has the potential to reduce accidents, ease traffic congestion, and revolutionize transportation.
Mobile app development
Mobile app development is the process of creating software applications that run specifically on smartphones and tablets. It is like building a toolbox for your phone. Each app is a specialized tool that helps you do something specific, from entertainment to communication to getting work done.
Key terms of mobile app development
Mobile app. A small software program designed for a mobile device. Imagine it as a mini-tool with a specific function, like a game, a fitness tracker, or a shopping app.
Development. The act of creating something new. In this case, it's the process of writing code, designing the app's interface, and making it work smoothly.
Smartphones and tablets. These are small, portable computing devices with touchscreens. They are more powerful than basic phones and can run various apps.
A bit of history
The first mobile app was created in the 1990s. However, due to differences in the “mobile app” definition, there are two contenders for the first-ever mobile app.
Built-in apps. In 1994, the IBM Simon Personal Communicator was considered the first true smartphone. It came pre-loaded with basic apps like Calendar, Address Book, Email, Calculator, and even a Notes app. These weren't downloaded from a store but rather built into the phone's system.
Downloaded game. Another contender is the game "Snake" pre-installed on the Nokia 6110 phone in 1997. This was a downloadable game in the sense it wasn't part of the phone's core functionality, but it wasn't downloaded from an app store either.
Want to feel old? (Or way too young?) Check out a YouTuber playing Snake on two Nokia 6110 phones:
[embed]https://www.youtube.com/watch?v=j9Rk4JQwtL4&ab_channel=unlokia[/embed]
What’s the difference between the first mobile apps and the mobile apps of the 2020s?
Mobile apps have gone from basic tools to powerful mini-computers in your pocket. They offer a wider range of functionalities, leverage the power of the internet, prioritize user experience, and benefit from advanced development tools. Here's a breakdown of the key differences between the first mobile apps and those of the 2020s:
Functionality
Early apps were focused on basic functionalities like calendars, address books, or simple games. They were limited by the processing power and storage capacity of early phones. 2020s apps offer a vast array of features and functionalities, from complex gaming experiences and advanced productivity tools to social media platforms and AI-powered assistants.
Connectivity
Early apps mostly functioned offline due to limited internet connectivity on early phones. 2020s apps often rely heavily on internet connectivity to deliver their full features. They leverage cloud storage, real-time updates, and integration with other online services.
Accessibility
Early apps were available on a limited number of phone models with varying operating systems. 2020s apps are designed to work across various phone models with standardized operating systems (like Android and iOS). They are readily available through centralized app stores with millions of options.
User Interface
Early apps had basic text-based interfaces or simple menus with limited graphics. 2020s apps prioritize intuitive and user-friendly interfaces with rich visuals, touch-optimized controls, and interactive features.
Development
Early apps were developed with simpler programming languages and limited tools. 2020s apps are developed using advanced programming languages, frameworks, and sophisticated tools that allow for complex functionalities and faster development cycles.
What are the development platforms (iOS and Android)?
Imagine you're building a house. You wouldn't use random bricks and mortar without a plan or the right tools, would you? In mobile app development, development platforms are like the blueprints and toolkits that help you build your app.
Development platforms are software environments that provide the tools and resources needed to create mobile applications. They offer pre-written code libraries, development tools, and frameworks to streamline the process. There are two main categories for mobile app development platforms.
Native platforms
They are designed specifically for a particular operating system (OS), such as iOS or Android. This allows for the best performance and access to all the features of that OS.
iOS development uses Xcode, Apple's IDE, and the Swift programming language to build apps for iPhones and iPads.
Android development uses Android Studio, another IDE, and primarily the Kotlin programming language to build apps for Android smartphones and tablets.
Cross-platform development
These platforms allow you to create apps that run on multiple operating systems with a single codebase. This saves development time and resources but may have limitations in performance or access to certain device features. Among the most popular cross-platform development frameworks are React Native (which uses JavaScript to build apps that look and feel native on iOS and Android) and Flutter (which uses the Dart programming language to create visually appealing apps for various platforms).
Ten 2024 mobile app development trends
Mobile app development is constantly evolving, with new technologies and user expectations shaping how apps are built. Here are some of the hottest trends for 2024:
1. Foldables
Foldable phones are no longer a novelty, and apps are being optimized to take advantage of their unique form factor. Expect to see interfaces that adapt and expand on larger foldable screens, creating immersive user experiences.
2. Wearables
Smartwatches and other wearables are becoming increasingly sophisticated. We'll see a surge in apps designed specifically for these devices, focusing on health and fitness tracking, mobile payments, and voice-activated controls.
3. IoT
Connecting everyday devices to the internet is creating a network of opportunities. Apps will play a central role in controlling smart homes, managing connected appliances, and personalizing user experiences based on real-time data.
4. AR and VR
With advancements in AR and VR technology, expect to see these features integrated into more apps. Imagine furniture shopping with AR to see how a couch fits in your living room or attending virtual concerts and events from anywhere in the world.
5. 5G
The rollout of 5G networks will unlock faster download speeds and lower latency. This paves the way for apps that require high bandwidth, like real-time video streaming, cloud gaming, and AR/VR experiences with minimal lag.
6. AI
Expect to see AI-powered chatbots offering customer service, personalized recommendations within apps, and voice assistants becoming even more intuitive and helpful.
7. Cost-conscious development
With the growing popularity of low-code/no-code development platforms, the barrier to entry for app creation is lowering. These platforms allow even those with limited coding experience to build basic apps, making development more accessible and potentially more affordable.
8. User privacy and security
Expect apps to prioritize robust security features and transparent data collection practices.
9. Super apps
Super apps are all-encompassing platforms offering a range of services, from messaging and payments to local business listings and transportation options. We might see a rise of these in specific regions.
10. Focus on mental wellbeing
Apps promoting mental health and well-being are expected to grow in popularity, offering tools for stress management, meditation, and sleep improvement.
Outstaffing
Outstaffing, also known as "staff augmentation" or "outsourced staffing," is a legal arrangement in which a business entity (the "client company") contracts with a third-party service provider (the "outstaffing company") to temporarily transfer certain employment-related responsibilities and obligations associated with its workforce. This contractual relationship is established according to applicable labor and employment laws.
Legal aspects of outstaffing
Employment relationship. Under an outstaffing arrangement, the client company retains control over the day-to-day tasks and supervision of the individuals who work for it. However, the outstaffing company formally employs these individuals, becoming the legal employer of record.
Compliance with employment laws. The outstaffing company assumes responsibility for complying with labor laws, including but not limited to wage and hour regulations, tax withholdings, workers' compensation, and employment discrimination laws. It’s obligated to ensure that the workers are treated under applicable employment standards.
Contractual agreement. The client company and the outstaffing company enter into a legally binding contract outlining the terms and conditions of the outstaffing arrangement. While the specific content of such agreements can vary depending on the parties' needs and preferences, these are the common sections of a typical outstaffing agreement:
Introduction and definitions
Scope of services
Duration and termination
Payment and fees
Employee benefits and compensation
Confidentiality and intellectual property
Indemnification and liability
Insurance
Compliance with laws
Dispute resolution
Conflicts of interest
Force majeure
Governing law and jurisdiction
Risk mitigation. Outstaffing can help the client company mitigate certain employment-related risks, such as legal liabilities associated with wrongful termination, workplace injuries, or employee disputes. By transferring these responsibilities to the outstaffing company, the client company may reduce its exposure to such risks.
Cost control. Outstaffing can offer cost savings to the client company by eliminating the need for full-time employees and associated expenses like benefits, insurance, and payroll administration. Instead, the client company pays a fee to the outstaffing provider for its services.
Confidentiality and intellectual property. The contractual agreement between the parties often includes provisions to safeguard the confidentiality of the client company's proprietary information and address issues related to intellectual property created by the workers.
Outstaffing advantages and benefits
Money saving. Outstaffing allows you to access skilled professionals without the overhead costs of hiring full-time employees. You pay for the specific services you need, reducing expenses like benefits, office space, and equipment.
Access to global talent and technology. Outstaffing providers often have access to a global pool of talent, enabling you to tap into specialized skills and expertise that may not be available in your local job market. You can also take advantage of the outstaffing provider's technology infrastructure, software, and tools, avoiding substantial upfront investments in technology and software licenses.
Reduced administrative burden. The outstaffing company assumes HR and administrative responsibilities, including payroll, tax compliance, and regulatory adherence, freeing you from these tasks.
Scalable workforce. Add or remove workers as needed to match project scope, allowing for efficient resource allocation and improved project management.
Cost predictability. Budget more accurately with predictable outsourcing costs, as opposed to the unpredictable costs associated with hiring and retaining full-time employees.
Competitive advantage. Stay competitive in your industry by leveraging outstaffing to quickly adapt to market changes, innovate, and maintain a lean, efficient workforce.
The difference between outstaffing and outsourcing
IT outstaffing and IT outsourcing are distinct approaches to managing IT functions.
IT outstaffing involves hiring external IT professionals who work as an extension of the client company's in-house team, with the client maintaining direct control over project management and tasks.
In contrast, IT outsourcing entails contracting a third-party company to handle specific IT functions or projects independently, with the outsourcing provider taking full responsibility for project execution and management.
IT outstaffing offers greater control and integration of external resources into the client's workflow, while IT outsourcing provides a turnkey solution with less client involvement in day-to-day operations and decision-making.
Whenever you have questions about outstaffing or want to try this strategy for your project development – give MWDN a call and estimate the cost of your dedicated remote teammate.
Per Diem
In labor and taxation legislation, "Per Diem" refers to a daily allowance or payment that is typically provided to employees or individuals to cover expenses incurred while traveling for work-related purposes. The term "Per Diem" is derived from Latin, meaning "per day."
Sometimes, the term "per diem" also denotes a daily payment model for temporary or on-demand jobs, such as for locum nurses or relief teachers, however, this meaning is not a subject of the following article.
Key aspects of Per Diem
In the context of labor and taxation legislation, Per Diem includes:
Travel expenses
Per Diem is intended to cover expenses for meals, lodging, transportation, and incidental expenses that employees or individuals may incur while away from their usual place of work. It simplifies the reimbursement process by providing a fixed daily allowance rather than requiring employees to submit receipts for each expense.
Fixed rates
Per Diem rates can vary by location and are often set by government agencies or employers based on local cost-of-living and business travel considerations. These rates may be different for domestic and international travel.
Taxation
Per Diem payments can have implications for income tax purposes. In many countries, including the United States, the tax treatment of Per Diem depends on whether the payment is considered accountable or non-accountable.
Under an accountable plan, Per Diem payments are not included as taxable income for the employee. However, the employee must provide an expense report detailing each expenditure's time, place, and business purpose. Any unused funds are typically returned to the employer.
If Per Diem payments don’t meet the requirements of an accountable plan, they may be treated as taxable income, subject to withholding and reporting, and are called non-accountable.
Both employers and employees should be well aware of the specific regulations and guidelines regarding Per Diem in their jurisdictions. Failure to comply with tax and labor laws related to Per Diem can lead to tax liabilities and legal issues. Therefore, many organizations have well-defined Per Diem policies to ensure proper compliance and documentation.
Limits, regulations, and specific rules
Some countries and employers impose limits on Per Diem rates to prevent excessive or inappropriate expenses. Additionally, regulations may specify when Per Diem can be provided, such as during business travel but not for regular daily commuting.
Certain industries, such as the trucking and construction sectors, have specific Per Diem rules and rates due to the nature of their work, which often involves extensive travel and lodging expenses.
Employers and employees must maintain accurate records of Per Diem payments and related expenses to ensure compliance with tax and labor laws.
When employees travel internationally, Per Diem rates can vary significantly between countries, and currency exchange rates may also affect the calculation of daily allowances.
How to work out Per Diem?
Per Diem amounts are predetermined daily rates given to staff for business-related travel expenses. Issuing these rates simplifies expense tracking and negates the need for extensive expense reports or receipt collections. The organization's travel guidelines should provide clear directives on per diem provisions.
To compute per diem: (1) ascertain the organization's Per Diem rates; (2) verify the eligible days (and nights) of travel; (3) multiply the per diem rate with the number of days.
For instance, let's consider a sales representative traveling for three days, with a two-night hotel stay, to conduct training and sales pitches. Given a daily travel allowance of $50 and a hotel rate of $150 per night:
($150 x 2 nights) + ($50 x 3 days) = $450
In the U.S., firms can take cues from the GSA to determine federal per diem rates. Updated annually, these rates factor in lodging costs, food expenses, and other variables.
Per Diem: by day or night?
Per diem allocations differ based on the nature of expenses. Daily Per Diem covers meals, commuting, and other daily costs. Nightly Per Diem addresses accommodation costs.
Tax aspects of Per Diem
In the U.S., Per Diem is generally tax-exempt. However, specific scenarios can have tax implications, as directed by the IRS. Typically, Per Diem becomes taxable if it surpasses the federally set Per Diem cap. If it exceeds this limit, only the excess amount becomes taxable.
Under specific conditions, employees can avail tax deductions on per diem, especially if adhering to GSA rates. Though the IRS allows businesses to deduct legitimate employee travel expenses, companies must maintain a verifiable plan to substantiate these deductions.
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Reimbursing business-related expenses is crucial for maintaining employee satisfaction and mutual trust. At MWDN, we facilitate a seamless experience for finance departments, ensuring international compliance.
Post-tax deductions FAQ
Post-tax deductions impact everyone in an organization, from the payroll department to individual employees. Hence, a clear understanding of the concept and its role in payroll is essential. Here are some frequently asked questions that should help you grab the concept of post-tax deductions.
1. What are post-tax deductions?
Post-tax deductions, often called after-tax subtractions, are amounts deducted from an individual’s earnings after necessary tax withholdings. Common examples include Roth 401(k) contributions, life insurance premiums, union contributions, and disability insurance premiums.
2. What types of deductions are considered post-tax deductions?
Common types of post-tax deductions include Roth 401(k) contributions, Roth IRA contributions, charitable donations, union dues, certain insurance premiums (those for supplemental life insurance or certain disability insurance policies), court-ordered deductions (child support or alimony payments), and after-tax investments.
3. How are post-tax deductions different from pre-tax deductions?
The key difference between pre-tax and post-tax deductions is when they are applied in relation to income tax calculations. Pre-tax deductions reduce taxable income and provide immediate tax benefits, while post-tax deductions are applied after taxes are withheld and do not reduce taxable income.
4. Are post-tax deductions subject to income tax?
No, post-tax deductions are not subject to income tax because they have already been subjected to income tax. When post-tax deductions are taken from an employee's paycheck, they are subtracted from the employee's net income, which is the income remaining after income taxes have been calculated and withheld.
In other words, the money used for post-tax deductions has already been taxed as part of the employee's gross income. Therefore, post-tax deductions are made with after-tax dollars, and no additional income tax is applied to them.
5. Can I change my post-tax deductions?
The ability to change post-tax deductions is influenced by employer policies, the type of deductions involved, and any qualifying life events that may allow for adjustments outside of regular enrollment periods. It's advisable to familiarize yourself with your employer's specific policies and consult with HR or payroll representatives for guidance on making changes to your deductions.
6. Is there a limit to how much I can contribute to post-tax retirement accounts?
The annual contribution limits for post-tax retirement accounts, such as Roth IRAs or Roth 401(k)s, are set by the government and may change each year. Here are some contribution limits as of 2023.
Roth IRA (Individual Retirement Account)
For the tax year 2023, the annual contribution limit for a Roth IRA is $6,500 for individuals under the age of 50 and $7,500 for individuals aged 50 and older (including catch-up contributions).
These limits are subject to income restrictions, and contributions may be reduced or phased out for individuals with higher incomes.
Roth 401(k) or Roth 403(b) Plans
Roth 401(k) and Roth 403(b) plans offered by employers have higher contribution limits than Roth IRAs.
For the tax year 2023, the annual contribution limit for these plans is $22,500 for individuals under the age of 50, with an additional catch-up contribution limit of $7,500 for those aged 50 and older.
Roth 457(b) Plans (for government employees)
Contribution limits for Roth 457(b) plans can vary by employer and may be influenced by the age of the account holder.
For 2023, individuals under age 50 could contribute up to $22,500.
7. Can I claim a tax deduction for post-tax charitable donations?
Depending on your tax situation and the specific tax laws in your country, you may be eligible to claim deductions for charitable donations on your income tax return. In the US, you can claim a tax deduction for post-tax charitable donations, but there are specific rules and requirements that must be followed. Consider the following key points to stay on the safe side.
Itemizing deductions. To claim a tax deduction for charitable donations, itemize your deductions on your federal income tax return using IRS Schedule A (Form 1040).
Qualified charities. The charitable organization to which you make contributions must be a qualified tax-exempt organization under Internal Revenue Code. Most established charities, religious organizations, and nonprofit groups fall into this category.
Documentation. Keep records of your charitable contributions, including receipts or written acknowledgments from the charity.
Limits on deductions. You can generally deduct up to 60% of your AGI for cash contributions to qualified charities.
Non-cash donations. If you donate non-cash items, such as clothing or household goods, you may also be eligible for a deduction.
Special deduction for 2021. Due to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act allowed for an above-the-line deduction of up to $300 for cash charitable contributions made by eligible individuals who did not itemize deductions for the 2020 tax year. This provision was extended for the 2021 tax year, allowing for an above-the-line deduction of up to $300 ($600 for married couples filing jointly) for cash donations to qualified charities, even if you take the standard deduction.
8. Do W-2s show after-tax deductions?
No, W-2 forms do not typically show after-tax deductions. W-2 forms provide a summary of an employee's taxable income and the various taxes and pre-tax deductions that have been withheld during the tax year. After-tax deductions, which are subtracted from an employee's net (after-tax) pay, are not included on the W-2 form because they do not affect the calculation of taxable income or tax withholding.
Yet, voluntary after-tax contributions to certain non-Roth pension plans might appear in Box 14.
9. What are statutory deductions?
Statutory deductions, also known as mandatory deductions, are deductions from an individual's income that are required by law. These deductions are typically enforced and regulated by government authorities, and employers are obligated to withhold and remit the specified amounts to the appropriate government agencies.
Statutory deductions are an essential part of an individual's compensation and include income tax, social security tax (FICA), medicare, unemployment insurance, workers' compensation insurance, and child support and alimony.
10. How to make your global payroll easier?
If you’re navigating global payroll complexities, MWDN is here to help. As an outstaffing company hiring tech specialists around the globe, we provide assistance with payroll and management of international employees and contractors, ensuring law compliance. Whether you need a small remote team or a giant office offshore, we've got solutions tailored for you.
Professional employment organizations (PEO)
A PEO is a firm that provides comprehensive HR solutions for small to mid-sized businesses. Partnering with a PEO allows these businesses to outsource a range of functions, including payroll administration, employee benefits, HR tasks, and compliance with local and federal regulations.
At the heart of the PEO arrangement is a co-employment relationship. This means the PEO co-hires the client's employees and becomes their administrative employer, while the client company remains the "worksite" employer, retaining control over day-to-day operations and management of employees.
Services provided by a PEO
Engaging with a PEO allows companies, especially smaller ones, to cost-effectively outsource many of their human resource tasks and focus on their core operations. The services a PEO provides typically include:
Payroll administration. PEOs handle all aspects of payroll, from calculating pay based on hours worked to withholding taxes, managing deductions, and distributing paychecks. They also handle payroll-related tax filings and ensure compliance with local, state, and federal regulations.
Employee benefits management. PEOs can manage and administer a wide range of employee benefits. Due to their economies of scale, they can often negotiate better terms for health insurance, dental and vision coverage, retirement plans (like 401(k)s), life insurance, and other benefits.
HR compliance and consultation. PEOs help businesses stay compliant with ever-changing labor laws and employment regulations. This includes assistance with workplace posters, employment practices, and employee handbooks.
Workers' compensation and risk management. PEOs provide workers' compensation coverage, manage claims, and offer risk management tools to reduce workplace hazards and potential liabilities. They also assist with OSHA compliance.
Recruitment and talent management. Some PEOs offer support in recruiting and talent management, helping businesses find, hire, onboard, and train new employees. They may also assist with performance reviews and employee development programs.
Employee training and development. PEOs can offer training programs on topics ranging from workplace safety and sexual harassment prevention to leadership development and skills training.
Employee relations and dispute resolution. PEOs provide guidance on employee relations issues, helping resolve conflicts and ensuring a harmonious workplace environment.
Termination and unemployment. In the event of employee terminations, PEOs can assist with exit interviews, handle unemployment claims, and ensure that terminations are done in compliance with the law.
Reporting and analytics. Many PEOs offer robust reporting tools, giving businesses insights into HR metrics, payroll data, benefit utilization, and more.
Time and attendance management. PEOs often provide systems to track employee hours, manage time-off requests, and ensure accurate and compliant timekeeping.
Understanding PEO's co-employment
Businesses, from accountants to tech startups, can collaborate with PEOs. In this partnership, both the PEO and the business split the roles and responsibilities of employment. This division is detailed in a PEO agreement. While the business continues its usual operations, the PEO handles HR-related tasks, like payroll. This arrangement simplifies compliance for businesses and reduces risks.
PEO pricing
The pricing models vary between PEOs, but they generally fall into a few common categories. One of the most common pricing structures is a percentage of the company's total payroll. For instance, a PEO might charge 3% of the total monthly payroll. So, if the monthly payroll is $100,000, the PEO's fee would be $3,000.
Some PEOs charge on a per-employee basis. The cost might be a fixed monthly fee for each employee on the payroll, such as $100/month per employee. This model is more predictable than the percentage-based one, especially for companies with higher average wages.
Other PEOs opt for a flat administrative fee plus the actual cost of services used. For instance, a PEO might charge a flat fee of $1,000 per month plus the actual costs of benefits, workers' compensation, etc.
As businesses scale up their workforce, some PEOs offer tiered pricing or volume discounts. The per-employee rate might decrease as the number of employees increases.
PEO pros and cons
While PEOs offer numerous advantages, especially in administrative relief and access to expertise, they might not be the right fit for every business. Here’s a quick recap of PEO’s advantages and disadvantages.
Pros
Cost savings. PEOs can often negotiate better rates for health insurance, workers' compensation, and other benefits due to their purchasing power, resulting in potential cost savings for businesses.
HR expertise. PEOs provide businesses with access to HR experts, ensuring compliance with local, state, and federal regulations, reducing the risk of legal issues or penalties.
Administrative relief. Outsourcing HR tasks, payroll, and benefits administration can free up time for business owners to focus on core business operations.
Access to better benefits. PEOs can offer a wider range of benefits than a small business might be able to provide on its own, helping to attract and retain top talent.
Risk management. PEOs help manage risks related to employment, ensuring businesses are compliant with employment laws and regulations. They can also assist with workplace safety programs to reduce accidents and workers' compensation claims.
Scalability. PEOs allow businesses to scale their HR operations more easily, adapting to the changing needs as the business grows or contracts.
Cons
Loss of control. While partnering with a PEO, some businesses may feel they have lost some control over certain HR functions or decision-making processes.
Cost concerns. Even though PEOs can lead to cost savings in some areas, the fees associated might be a concern for some businesses. It's essential to weigh the benefits against the costs.
Contractual commitments. Some PEOs might require long-term contracts, limiting a company's flexibility if their needs change.
Potential cultural impact. With an external organization handling HR, there might be concerns about maintaining the company's unique culture and values.
Data security. Sharing employee data with an external organization always carries some risk. It's crucial to ensure that the PEO has robust data security measures in place.
Potential misalignment. If a PEO's offerings don't align well with a company's specific needs or the business operates in a highly specialized sector, the partnership might not be as beneficial.
Note! In the US, PEOs can get accreditation. The IRS oversees the CPEO program, and ESAC offers independent third-party accreditation. Many PEOs in the US are NAPEO members.
PEO vs EOR (Employers of Record)
While PEOs share employment responsibilities, EORs take complete charge as employers, especially on an international scale. PEOs aid in HR and payroll for local workers. In contrast, EORs handle all employment aspects, including legalities, for global hires. EORs, like MWDN, operate in numerous countries, allowing businesses to hire globally without diving deep into local labor laws.
If you have a local team, a PEO can amplify your HR operations and ensure you comply with local laws. For international hiring, consider an EOR. If you need flexibility in both local and international hiring, services like MWDN might be your best bet.
Remote work
Remote work, also known as telecommuting or telework, refers to a working arrangement in which an employee, contractor, or service provider performs their job duties from a location other than the employer's physical premises, typically from a remote or off-site location, often a personal residence or another remote work facility. This arrangement is facilitated through technology and communication tools that enable the individual to fulfill their work responsibilities without needing physical presence at the employer's place of business.
Remote work may be subject to legal and contractual agreements, including employment contracts, labor laws, and workplace policies, which govern various aspects of the arrangement, including working hours, compensation, data security, and compliance with applicable regulations.
Trends and management practices in remote work
Covid restrictions have dramatically affected the popularity of remote work. Now, almost two years after the pandemic’s end, we can analyze new trends.
Hybrid work models. Many organizations adopt hybrid work models that combine both remote and in-office work. This approach offers employees flexibility while maintaining some level of physical presence in the office.
Digital transformation. Businesses invest in digital tools and technologies to facilitate remote work, including collaboration platforms, project management software, and virtual communication tools.
Focus on employee well-being. Companies recognize the importance of supporting employees' mental and physical well-being in a remote work environment. This includes offering wellness programs, mental health resources, and flexible scheduling options.
Results-oriented performance management. Performance management shifts towards results-based assessment rather than tracking hours worked. Goals and objectives are emphasized, allowing employees to demonstrate their productivity regardless of location.
Virtual onboarding and training. Remote onboarding processes become more comprehensive with the use of digital training modules and virtual orientations for new hires.
And here are some management practices that help remote work stay efficient, comfortable, and profitable.
Data security and privacy. As remote work involves handling sensitive data off-site, organizations are emphasizing data security and privacy measures, including encryption, secure access, and cybersecurity training.
Remote work policies. Companies are formalizing remote work policies to provide clear employee guidelines regarding expectations, communication, availability, and remote work expenses.
Global talent pool. Remote work allows organizations to tap into a global talent pool, enabling them to hire the best talent regardless of geographic location.
Communication and collaboration. Enhanced communication and collaboration tools are essential for remote work, with video conferencing, chat platforms, and project management tools playing a central role in keeping teams connected and productive.
Performance metrics and analytics. Companies are utilizing data analytics to monitor remote employee performance, identify areas for improvement, and make data-driven decisions about remote work effectiveness.
Flexible work hours. Flexibility in work hours is becoming more common, allowing employees to adapt their schedules to their individual needs and preferences, enhancing work-life balance.
Training for remote managers. Managers are receiving training and resources to effectively lead remote teams, including coaching on virtual leadership, communication skills, and team-building strategies.
Legal and compliance considerations. Organizations are ensuring compliance with labor laws, tax regulations, and employment regulations in various jurisdictions when managing remote workers across borders.
Performance recognition and rewards. Remote workers are recognized and rewarded for their contributions through virtual recognition programs, performance bonuses, and career advancement opportunities.
Remote work tools
Effective remote collaboration relies on various tools and technologies that facilitate communication, project management, document sharing, and team coordination. These are some of the most popular tools for effective remote collaboration with some notorious examples.
Video conferencing software (Zoom, Microsoft Teams, Google Meet)
Instant messaging and chat apps (Slack)
Project management software (Trello, Asana, Notion)
Document collaboration (Google Workspace, Microsoft 365)
File sharing and storage (Dropbox, Google Drive, OneDrive)
Virtual whiteboards (Miro, Microsoft Whiteboard)
Screen sharing and remote control (TeamViewer, AnyDesk)
Time tracking and productivity monitoring (Toggl, Clockify, Hubstaff)
Email and calendar apps (Gmail, Outlook)
Collaborative design and creativity tools (Adobe Creative Cloud, Figma)
Password managers (LastPass, 1Password)
Virtual private networks (NordVPN, ExpressVPN)
Collaborative code and development tools (GitHub, GitLab)
The tools are all here – better and more efficient than ever. Selecting the right combination will be quite beneficial for effective remote work and collaboration.
MWDN has been working according to the remote model long before the Covid, so we have a full range of expertise on how to make your dedicated remote teams efficient and productive. Leave us a message to find out more about ways in which we can help your business grow.
Scalability in software development
Scalability in software development refers to a system's ability to handle increasing workloads without compromising performance or reliability. It's like a rubber band that stretches without breaking.
A scalable application can handle more users, data, or transactions without requiring significant changes or experiencing slowdowns. This is crucial for businesses that expect growth and want to ensure their software can keep up.
Why do you need scalability for?
It handles growth. As a business or application grows, it needs to accommodate increasing user loads and data volumes. A scalable system can handle this growth without compromising performance.
It improves user experience. Scalability ensures a consistent and responsive user experience, even during peak usage periods.
It is cost-efficient. Scalable systems allow for efficient resource utilization, avoiding overprovisioning and reducing costs.
It helps with business continuity. A scalable system can handle unexpected spikes in traffic or data, preventing outages and downtime.
It is future-proof. By designing for scalability, you can accommodate future growth and changes in business requirements.
How do you make your software development scalable?
Scalability is achieved through a combination of architectural design, technology choices, and operational practices. Architectural, technological, and operational strategies are key to scalability. Here are some of them.
Architectural strategies
Microservices architecture. Breaking down applications into smaller, independently deployable services enhances scalability and resilience.
Serverless architecture. Offloading infrastructure management to cloud providers, allowing for automatic scaling.
Event-driven architecture. Building systems that react to events, enabling better scalability and responsiveness.
Technological strategies
Cloud computing. Utilizing cloud platforms for elastic resources and infrastructure.
Containerization. Packaging applications and their dependencies into isolated containers for efficient deployment and scaling.
Load balancing. Distributing incoming traffic across multiple servers to prevent overload.
Caching. Storing frequently accessed data in memory for faster retrieval.
Database optimization. Implementing strategies like indexing, partitioning, and sharding to improve database performance.
Operational strategies
Monitoring and performance testing. Continuously monitoring system performance and conducting load tests to identify bottlenecks.
Automation. Automating deployment, scaling, and other processes to reduce manual effort and improve efficiency.
Capacity planning. Predicting future resource needs and proactively scaling the system.
Outstaffing. Bringing in additional personnel to handle increased workloads, especially during peak periods.
By combining these methodologies and strategies, you can build a scalable system that will adapt to changing demands and ensure your business continuity.
Social Security wages
Social Security wages refer to the portion of an individual's earnings that are subject to Social Security taxes. In many countries, these taxes fund social insurance programs designed to provide benefits for retirees, the disabled, and their dependents. The specific structure and regulations can vary by country, but the foundational concept remains: workers and employers contribute a percentage of wages to ensure certain societal safety nets.
In the U.S., for instance, both employers and employees pay into the Social Security system, with a cap on the amount of wages that can be taxed annually. However, other countries might have different thresholds or rates. The nuances of Social Security wages in each nation reflect their unique socio-economic priorities and challenges.
How do you pay Social Security wages in the US?
In the US, Social Security wages are the earnings of an employee that undergo federal Social Security tax deductions.
The Social Security tax is split equally: 6.2% comes from the employer and another 6.2% from the employee. This tax, along with the Medicare tax, forms part of the Federal Insurance Contributions Act (FICA) taxes set by the Internal Revenue Service (IRS).
These wages are amounts taken from employees' earnings to satisfy the federal Social Security tax requirement. Even if an employee doesn't benefit from Social Security, employers still have to make this deduction under FICA rules.
Types of income subject to the Social Security wages
Regular salaries or hourly pay
Bonuses
Commissions
Tips over $20 monthly
Paid sick leave
Paid vacations
Certain non-cash payments
Contributions to some retirement plans
However, not all types of earnings are counted as Social Security wages. Exempt earnings include:
Wages to some disabled workers after they qualify for disability benefits
Employer's contribution to certain retirement plans
Approved business travel expenses
Payments to young family workers (below 18 or 21 for household jobs)
Some benefits, insurance, and payments to specific non-employees
Tips less than $20 monthly
Compensation for work-related injuries or illness
Employer-covered health or accident insurance
Contributions to an employer's health savings account (HSA)
Calculating Social Security wages
To work out the Social Security tax, first determine the gross pay, then subtract any exclusions from it. Using this amount, apply the 6.2% tax rate for both the employer and employee.
For instance, if Mr. X earns $2,000 as a retail salesman and receives an additional $1,000 commission and a $15 tip, his total is $3,000. The Social Security tax on this amount would be $372, shared equally by Mr. X and his employer.
Setting Social Security wages limits
In 2022, the highest taxable income for Social Security purposes was set at $147,000. This limit adjusts annually (in 2021 it was set at $142,800), taking inflation into account. Once an employee earns more than this amount in a year, no more Social Security tax is taken for that year. The Social Security Administration uses these wages to decide on retirement benefits.
Recording Social Security wages on W-2 The W-2 form, a yearly tax statement, shows an employee's Social Security wages, among other details. This form, based on the employee's W-4 Form, reflects the taxes reserved for federal income and FICA taxes, totaling 15.3% of gross pay, shared equally between employer and employee.
Key sections on the W-2 form
Box 1: shows taxable earnings for federal income tax
Box 2: shows earnings that undergo Social Security tax. The Social Security Administration uses the amount in Box 2 to work out benefits.
Social security wages in Israel
Social security in Israel is managed by the National Insurance Institute (Bituach Leumi). It is responsible for collecting social security contributions and providing various social benefits to eligible residents. The system covers a range of services from old-age pensions, disability benefits, child allowances, unemployment compensation, and more.
The amount that workers and employers contribute to the National Insurance Institute is determined as a percentage of the worker's salary. This is up to a certain ceiling or maximum, beyond which no further contributions are made. The rate and ceiling might vary based on changes in regulations or economic considerations. It's essential to note that Israel's social security system also provides benefits for those who don't work, including housewives, students, and the unemployed, though the specifics of contributions and eligibility might differ.
Social security wages in EU countries
Social security systems across European Union countries are diverse, reflecting the unique historical, economic, and cultural contexts of each member state. However, the EU does encourage coordination between member states to ensure that citizens' social rights are maintained even if they move or work in different EU countries.
Nature of Social Security systems. Each EU country has its own distinct system. They cover various aspects such as healthcare, pensions, unemployment benefits, family benefits, and more. Depending on the country, these can be universal, insurance-based, means-tested, or a combination thereof.
Contribution rates. The percentages of wages that go toward social security vary widely. In some countries, it's a flat percentage; in others, it can be progressive. For instance, in France, both employees and employers contribute to various social funds. In Germany, the system is insurance-based, with workers and employers typically sharing the costs equally.
Employer vs employee contributions. Almost all EU countries have a system where both the employer and employee contribute to the social security fund. The split can vary, but in many countries, it's roughly equal or with employers paying a slightly higher percentage.
Ceilings and floors. Some countries have a minimum or maximum contribution, meaning there's a cap on the income that's subjected to social security contributions.
Benefits. Depending on the country and the specific benefit (health, pension, unemployment), the method of calculating and disbursing benefits will vary. Some are based on lifetime earnings, while others are flat rates, and some are means-tested.
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In MWDN, we take care of calculating, deducting, and helping our employees to pay Social security wages based on their country of residence. If you’re hiring specialists from abroad with us, you can rest assured that all the labor legislation and taxation rules will be preserved.
Software as a Service (SaaS)
Software as a Service (SaaS) is a method of delivering software applications over the internet, typically on a subscription basis. Here are some key terms.
Software. A set of instructions that tells a computer what to do. Think of it as a recipe that the computer follows to perform specific tasks.
Service. An act of doing something for someone else. In SaaS, the service is providing access to and use of the software.
Subscription. A regular payment made to gain access to a service or product, often for a set period. With SaaS, you pay a recurring fee (monthly, annually) to use the software.
SaaS is like renting an apartment instead of buying a house. The landlord (SaaS provider) maintains the property (software), and you pay rent (subscription fee) to live there (use the software).
The mechanics of SaaS – How does it work?
SaaS has become a dominant force in the software industry. But how exactly does it work under the hood?
The cloud foundation. At the core of SaaS lies cloud computing. The SaaS provider maintains the software application on powerful servers located in vast data centers.
Multi-tenant architecture. SaaS applications are designed with a multi-tenant architecture. This means a single codebase serves multiple users (tenants) simultaneously. Each tenant's data is isolated and secure, even though they share the underlying infrastructure.
User access and management. Users access the SaaS application through a web browser using a login and password. The provider manages user accounts, access permissions, and ensures secure authentication.
Subscription model and payment. SaaS operates on a subscription model. Users typically pay a recurring fee (monthly, annually) for access to the software. This fee often covers features, updates, maintenance, and technical support.
Automatic updates and maintenance. A major advantage of SaaS is the provider's responsibility for automatic updates and maintenance. You don't need to worry about downloading and installing updates or fixing technical glitches. The provider handles these tasks, ensuring you have the latest features and security patches.
Scalability and flexibility. SaaS offers inherent scalability. Users can easily adjust their subscription plan based on changing needs. Need more storage or additional features? Simply upgrade your plan.
Integration and interoperability. Many SaaS applications offer integration capabilities, allowing them to connect and share data with other tools and services you might use. This fosters a more streamlined workflow.
Security and data protection. Providers implement robust security measures to protect user data and ensure application accessibility. They are responsible for data encryption, access controls, and disaster recovery plans.
What are the market trends of SaaS in 2024?
The SaaS market is expected to continue its remarkable growth trajectory in 2024. Here are key trends we should expect.
Focus on customer success and personalization
Increased competition is driving a shift towards customer-centricity. SaaS providers will prioritize user experience, offering features and functionalities that cater to specific needs and preferences.
Expect a rise in personalized dashboards, custom workflows, and in-app guidance to enhance user engagement and satisfaction.
Customer success management will become even more crucial, with providers offering dedicated support channels and proactive measures to ensure user adoption and value realization.
AI integration
AI is revolutionizing various industries, and SaaS is no exception. Expect to see increased integration of AI for tasks like:
Smart automation. Automating repetitive tasks and streamlining workflows using AI-powered tools.
Predictive analytics. Predict user behavior, identify potential problems, and personalized recommendations.
Enhanced customer service. Utilizing AI-powered chatbots for 24/7 support and personalized troubleshooting.
The rise of vertical SaaS
Traditional "one-size-fits-all" SaaS solutions are giving way to Vertical SaaS. These are industry-specific applications tailored to the unique needs of a particular vertical market (e.g., healthcare, finance, retail).
Vertical SaaS offers deeper functionality, industry-specific compliance, and pre-built integrations with relevant tools, making it a more efficient and effective solution for businesses in a specific sector.
Security and privacy regulations
Data security and privacy remain top priorities. With stricter regulations like GDPR and CCPA, SaaS providers will need to ensure robust security measures and transparent data practices.
Focus on data encryption, access controls, and compliance certifications will be crucial for building user trust and avoiding regulatory issues.
Subscription model evolution
The traditional subscription model may see some changes. Expect to see options like usage-based pricing gaining traction, where users pay based on their actual usage of the software.
Freemium models might also become more widespread. These offer basic features for free, with premium features requiring a paid subscription.
Low-code/no-code
Low-code/no-code development platforms make building basic applications easier for non-technical users. This trend empowers businesses to create custom solutions without relying heavily on expensive software development resources.
Mergers and acquisitions
As the market matures, we might see an increase in mergers and acquisitions as established players look to expand their offerings and gain market share.
UI/UX design
UI/UX design is a discipline focused on the design of user interfaces (UI) and user experiences (UX) for digital products and services. UI design involves creating the visual and interactive elements of a product, such as buttons, icons, and layout, to ensure an aesthetically pleasing and intuitive interface.
UX design encompasses the overall experience a user has with a product, including ease of use, efficiency, and satisfaction, aiming to optimize how users interact with, perceive, and use the product. Together, UI/UX design aims to create products that are not only visually appealing but also user-friendly, efficient, and enjoyable to use.
What’s the difference between UI/UX and graphic design?
The difference between UI/UX and graphic design lies in their focus, processes, and outcomes.
UI/UX design focuses on the overall experience and interaction users have with digital products, like websites or apps. It involves designing the interface for ease of use and crafting the user experience to ensure it's intuitive and meets the user's needs. This process involves understanding user behavior, developing wireframes, and creating interactive designs that facilitate a seamless and effective user journey.
Graphic design, on the other hand, is more concerned with the visual aspects of communication and presentation across various media. It involves creating graphics, typography, layouts, and images to communicate ideas or messages visually. Graphic design is used in branding, print media, advertising, and more, focusing on aesthetics and visual appeal.
In other words, while UI/UX design is specifically tailored to enhance usability and user satisfaction, graphic design serves a broader purpose of visual communication and can be applied across both digital and physical mediums.
What are the key aspects of UI/UX design?
User research. Understanding the target audience's needs, preferences, and behaviors through various research methods.
Usability. Creating products that are easy and efficient to use, enhancing user satisfaction.
Information architecture. Organizing and structuring content in a way that makes it easily accessible and understandable to users.
Interaction design. Designing interactive elements like buttons and gestures to facilitate smooth interaction between the user and the product.
Visual design. Crafting the visual elements of the interface, such as colors, typography, and layout, to create an aesthetically pleasing and coherent look.
Prototyping. Developing prototypes to test and refine concepts, interfaces, and interactions.
User testing. Gathering feedback from users to identify issues and areas for improvement.
Accessibility. Ensuring that digital products are usable by people with a wide range of abilities and disabilities.
Responsive design. Designing interfaces that adapt to different device sizes and orientations for a consistent user experience across platforms.
Wireframing. Creating simple layouts to outline the structure of pages or screens within a product, focusing on functionality rather than visual design.
What does a UI/UX designer do for business?
UI/UX designers are essential for creating digital products that are both successful and user-friendly. Their work is vital in driving business growth and achieving long-term success. Why are they important for business?
UI/UX designers improve user experience. A well-designed UI/UX can increase user satisfaction, engagement, and loyalty.
They increase conversion rates. A user-friendly interface can help users complete desired actions, such as making a purchase or signing up for a service.
They reduce development costs. Identifying usability issues early in the development process can save time and money compared to fixing them later in the development cycle.
They enhance brand reputation. A positive user experience contributes to a strong brand reputation.
How much does a UI/UX designer make?
Surely, a UI/UX salary vastly depends on their experience and background. The thing that affects remuneration rates the most is their geographical position. Here are some annual averages in USD across regions as of 2024 according to Indeed, SalaryExpert, Glassdoor, JustJobs, DOU, and VietnamWorks:
USA | $80,000 - $144,000 |
Israel | $50,000 - $100,000+ |
Poland | $35,000 - $80,000+ |
Brazil | $30,000 - $70,000+ |
Ukraine | $25,000 - $60,000+ |
Vietnam | $20,000 - $50,000+ |
What are the best examples of UI/UX design?
The best examples of UI/UX design often come from widely used digital products and services celebrated for their intuitive interfaces and positive user experiences. Here are a few well-regarded examples across different categories.
Mobile apps
Instagram. Simple and clean interface with a focus on visual content and discoverability.
Airbnb. Seamless search and booking experience for finding unique accommodations.
Apple Music. User-friendly music streaming with intuitive navigation and personalized recommendations.
Duolingo. Gamified language learning app that makes learning engaging and fun.
Websites
Apple. Minimalist design with a clear hierarchy and focus on product information.
Dropbox. User-friendly cloud storage platform with intuitive file management and sharing features.
Mailchimp. Streamlined email marketing platform with an easy-to-use design for creating and sending campaigns.
Software
Adobe Photoshop. Industry-standard image editing software with a powerful yet customizable interface for professional users.
Figma. Collaborative design platform with intuitive tools for creating and sharing user interfaces.
Slack. A streamlined communication platform that simplifies team collaboration and information sharing.
You can check out the best designs of 2023 according to Apple to get a better perspective of modern UI/UX trends.
Version control systems
Version control is like having a time machine for your code. Imagine you're writing a book. Every time you make a change, you save a new version. With version control, you can go back to any previous version, see what changed, and even combine parts from different versions.
The definition of version control systems
Version control system (VCS) is a software tool that records changes to a file or set of files over time. This enables users to retrieve specific versions later. VCS is primarily used for software development, but it can be applied to any type of file.
Key benefits of VCS:
Keeps track of changes. Records every modification to your code, so you know who made what changes and when.
Collaboration. Multiple people can work on the same project without overwriting each other's work.
Time travel. You can revert to previous versions if something goes wrong.
Experimentation. You can try new things without fear of breaking the main codebase.
How does a version control system work?
A VCS operates by maintaining a repository, which is a central location where all versions of the code are stored. Among key concepts of VCS are:
Repository (a central storage location for all project files and their history),
Commit (a snapshot of the project at a specific point in time),
Branch (a separate line of development that allows multiple developers to work on different features without affecting the main codebase), and
Merge (combining changes from different branches into a single branch).
Here’s how the basic workflow of a version control system looks:
Checkout. A developer creates a local copy of the project from the repository.
Modifications. The developer makes changes to the code.
Commit. The developer saves the changes as a new version (commit) in the local repository.
Push. The developer sends the changes to the central repository.
Pull. Other developers can fetch the latest changes from the central repository.
There are two types of version control: centralized and distributed. Here’s the difference:
What are popular version control systems?
There are several popular version control systems used in software development. Among centralized version control systems, Subversion (SVN) is the most widely adopted one. It’s a centralized system where a single repository stores all project files.
Among distributed version control systems, there’s more to choose from.
Git is a decentralized system where each developer has a complete copy of the repository, making it highly efficient for large projects and distributed teams.
Mercurial is another decentralized system known for its speed and simplicity.
Bazaar is a flexible system that supports both centralized and distributed workflows.
Git is currently the most widely used version control system due to its flexibility, speed, and strong community support.
W-2 employee overview
A W-2 employee is someone employed by a US company or organization. Each year, they get a W-2 form to show their income and the taxes taken out.
W-2 employees are not contractors or freelancers. They have rights and benefits in the US, like health coverage, paid breaks, job loss benefits, and insurance for workplace injuries. This concept is for the US and might not match rules in other countries.
Understanding the W-2 tax form
Form W-2 states how much your job paid you and the taxes its accountant department took out. Every worker gets a W-2 from their employer, but contractors get a different form (Form 1099-NEC). Employees use the W-2 form when doing their taxes with the IRS (Internal Revenue Service).
Benefits for W-2 employees
W-2 worker benefits are the additional perks and extras, aside from direct labor pay, that companies offer their employees. These benefits include:
Medicare and social services taxes (FICA taxes)
Insurance for job injuries
Job loss benefits
Health plans, sometimes special ones based on company size
Time off under the Family and Medical Leave Act (FMLA)
Disability coverage
Retirement savings options
Getting a W-2 form
As an employee, you can expect that your employer gives you a W-2 form every year by January 31st. If you can't get it from them, the IRS can help. The Internal Revenue Service gives you a copy of the form if you haven’t received one.
Copies of the W-2 form
You, your employer, and the IRS get copies of your W-2.
Copy A – should be sent to the Social Security Office by tax day.
Copy B – should be saved until you use it for your taxes.
Copy C – should be stored by you for at least three years.
Copy D – should be kept by your employer.
Copy 1 – should be sent by the employer to local tax offices if needed.
Copy 2 – should be kept by you for local tax offices if needed.
If you have more than one job, you get a W-2 from each employer. Using multiple W-2s for taxes is okay. At the same time, it's rare to get many W-2s from one employer. The latter can happen in some particular cases, for example, if the company was sold.
For Non-US Workers
The W-2 is for US taxes. If you're from another country but work for a US company, you might get Form 1042-S which you need to include in your taxes.
If you work in another country for a US company, you usually pay taxes to your local government. However, in the US company might still take out US taxes. Check for agreements between the US and your country to avoid double taxation.
W-9 form
In the United States, Form W-9, officially titled "Request for Taxpayer Identification Number and Certification," is used in specific tax situations. Namely, it's for businesses to get tax details from freelancers who are US citizens or tax residents, no matter where they are.
Purpose of Form W-9
Form W-9 is primarily used by individuals and entities, such as freelancers, independent contractors, and businesses, to provide their taxpayer identification number (TIN) to entities that will pay them income during the tax year. The TIN can be a Social Security number (SSN), Employer Identification Number (EIN), or Individual Taxpayer Identification Number (ITIN).
The details provided on the W-9 are then used by the paying entity to fill out other tax documents, like Form 1099-MISC, which reports non-employee compensation.
In simple words, US businesses don't withhold tax or give benefits to freelancers. But the IRS wants to track what freelancers earn. Businesses report payments over $600 to freelancers using Form 1099-NEC, and they use Form W-9 to get the freelancer's tax ID.
If a US business works with a freelancer who isn't a US citizen or tax resident, they use Form W-8BEN or W-8BEN-E.
When is Form W-9 used?
Usually, clients or financial institutions will ask for this form. It's not sent to the IRS. Instead, return it to the person who asked for it and keep a copy. Here is a wider list of situations when you should use Form W-9:
For independent contractors and freelancers. Businesses request a W-9 from non-employees they pay for services to ensure they have the necessary details to report the payments.
For interest, dividend, and broker transactions. Financial institutions might request a W-9 for certain transactions.
For debt cancellation. If a debt owed by an individual or business is canceled, the creditor may request a W-9 from the debtor.
For real estate transactions. In some real estate transactions, a W-9 might be requested to report payments and transactions to the IRS.
Where do you get Form W-9?
You can obtain Form W-9 directly from the U.S. Internal Revenue Service (IRS). The simplest way to obtain Form W-9 is to download it from the official IRS website. You can also visit a local IRS or federal government office to pick up various tax forms, including Form W-9. However, if a business or individual needs you to complete a Form W-9, they will often provide one for you.
When you have the form, you can fill it out manually, or if you've downloaded it from the IRS website, you may be able to fill it out electronically and then print and sign it. Always ensure you're using the latest form version, as the IRS can update it.
How do you fill in Form W-9?
Filling out Form W-9 is relatively straightforward, but it's essential to provide accurate information. Here's a step-by-step guide on how to fill out the form:
Name. Enter your full name as shown on your income tax return. If you operate a sole proprietorship and your business has a separate name (a "doing business as" name), you'll put that in the next line.
Business name. If you have a business name, trade name, DBA name, or disregarded entity name, you'll put it here. If not, just leave it blank.
Federal Tax Classification. Check the appropriate box for your tax classification (e.g., individual/sole proprietor, C Corporation, S Corporation, Partnership, Trust/estate, Limited Liability Company, etc.). If you're an LLC, you'll also need to specify the tax classification (C=C corporation, S=S corporation, P=Partnership).
Exemptions. If you are exempt from backup withholding and FATCA reporting, enter the appropriate codes in the boxes. Most individuals do not fill out this section unless they've received a specific notice from the IRS.
Address. Provide your address.
City, state, and ZIP. Fill in your city, state, and ZIP code.
List account number(s) here (optional). This is only used when the W-9 is provided in relation to a specific account, and the requester wants to associate the form with that account. You can usually leave this blank.
Part I – TIN (Taxpayer Identification Number). If you're an individual, this will be your Social Security Number (SSN). If you're operating with a business entity (like an LLC or a Corporation), it might be an Employer Identification Number (EIN).
Part II – Certification. Read the certification carefully. If everything is accurate, you'll sign and date the form. By signing, you're certifying, among other things, that the TIN you're providing is correct and that you're not subject to backup withholding (unless you've previously been notified by the IRS that you are).
Signature and Date. Sign your name and date the form.
Form W-9 is a critical tax form, and any false statements can result in penalties. It's crucial to ensure the information provided on the form is accurate and up-to-date.
Note: This summary is for information only. Always check the IRS website or consult a tax expert for guidance.
Web architecture
Software architecture is the fundamental structure of a software system, encompassing the components, their relationships, and how they interact. It serves as a blueprint, guiding the development process and ensuring the system meets its intended goals.
Think of it as the architectural blueprint of a building: it outlines the structure, components, and how they work together, but without the specific details of interior design or electrical wiring.
Architecture definition
Web architecture is the structural design of a website or web application, encompassing the arrangement, organization, and interaction of its components. It defines the relationship between different elements, such as pages, databases, and servers, to create a cohesive and efficient digital experience.
Architecture components
Architecture components are the fundamental building blocks of a software system. They represent distinct functional units with well-defined interfaces. These components interact to achieve the system's overall goals. Key types of architecture components include:
Presentation layer. The user interface, responsible for interaction with the user.
Business logic layer. Handles the core business rules and processes.
Data access layer. Manages interaction with the database.
Integration layer. Connects to external systems and services.
Security layer. Protects the system from unauthorized access.
Caching layer. Improves performance by storing frequently accessed data.
Logging and monitoring components. Collect and analyze system data for troubleshooting and optimization.
These components are designed to be modular and reusable, allowing for flexibility and scalability in software development.
Infrastructure components
DNS (Domain Name System) translates human-readable domain names into machine-readable IP addresses. It's the phonebook of the internet, directing users to the correct servers.
Load balancers distribute incoming traffic across multiple servers to prevent overload and ensure optimal performance.
Caching services involve storing frequently accessed data in memory for faster retrieval.
CDN (Content Delivery Network) is a geographically distributed network of servers that deliver content to users based on their location.
Data storage and processing
Databases store and manage data. They can be relational (structured data) or NoSQL (unstructured or semi-structured data). They are essential for storing user information, product catalogs, and other critical data.
Data warehouses are specialized databases designed to store and process large amounts of data for analysis. They are used for business intelligence and reporting purposes.
Application components
Web app servers are software applications that handle client requests and generate dynamic content. They interact with databases to retrieve and process information and then send the appropriate response to the client.
Types of web architecture
Web architecture refers to the structural design of a website or web application. There are several primary types:
Monolithic architecture is the traditional approach where all components of an application are tightly coupled and deployed as a single unit. While simple to develop, it becomes challenging to maintain and scale as the application grows.
Client-server architecture separates the user interface (client) from the application logic (server). The client interacts with the server to request data and services.
Three-tier architecture is an extension of client-server architecture. It introduces a middle tier between the client and the database, handling business logic.
Service-oriented architecture focuses on reusable services that can be combined to build applications. It promotes modularity and flexibility.
Microservices architecture is a modern approach that breaks down an application into small, independent services. Each service focuses on a specific business capability and can be developed, deployed, and scaled independently.
Serverless architecture offloads the management of servers to a cloud provider. Developers focus on writing code, without worrying about infrastructure.
Hybrid approaches combining elements of different architectures are also common in modern web development.
What about frontend and backend?
Frontend and backend aren't architectural types, but rather components within a web architecture.
Frontend. The user interface of a web application, responsible for the visual presentation and interaction. It's typically built using HTML, CSS, and JavaScript.
Backend. The server-side of a web application, handling data processing, business logic, and database interactions. Technologies like Python, Java, Ruby on Rails, and Node.js are commonly used.
These two components work together to create a complete web application.
Criteria of web architecture
Performance. How quickly the application responds to user requests. The ability to handle increasing loads without compromising performance. The amount of work a system can accomplish in a given time period.
Reliability. The system's uptime and accessibility. The ability to continue operating despite failures. Graceful handling of unexpected errors.
Maintainability. Breaking down the application into reusable components. Ease of testing individual components and the overall system. Clear and well-documented codebase.
Security. Safeguarding sensitive user information. Controlling access to system resources. Identifying and addressing security weaknesses.
Cost-Efficiency. Efficient use of hardware and software resources. Avoiding unnecessary costs.
By adhering to these criteria, developers can create web applications that are efficient, reliable, secure, and maintainable.
What specialists create web architecture?
Creating a robust web architecture requires a team of skilled professionals. Here are the key roles:
Software architect. Oversees the overall design and structure of the system, making high-level decisions about technology choices and system components.
System architect. Focuses on the technical infrastructure, including hardware, networking, and system integration.
Web architect. Specializes in designing the architecture specifically for web applications, considering factors like scalability, performance, and user experience.
Solution architect. Bridges the gap between business requirements and technical implementation, ensuring the architecture aligns with business goals.
Database architect. Designs the database schema, ensuring data integrity and performance.
Additionally, roles like UI/UX designers, security engineers, and DevOps engineers contribute to the overall architecture by considering factors like user experience, security, and deployment.
Work permit
Definition of a Work Permit: A work permit is an official document granting authorization to individuals to seek employment and legally earn in a foreign nation. It is common for countries to mandate either permanent or temporary work permits for those wishing to work within their territories. Acquiring this permit involves a structured application procedure.
Application process for a work permit
The procedure to apply for a work permit varies globally. Let’s take the U.S. and the EU as examples.
U.S. work permit application
In the United States, the work permit is referred to as the Employment Authorization Document (EAD) or Form I-766, which is submitted to the United States Citizenship and Immigration Services (USCIS). Possessors of this document are permitted to work legally in the U.S., primarily on a temporary basis. Along with the permit, foreign workers receive a Social Security Number (SSN), ensuring protection from discrimination based on immigration status under U.S. law.
U.S. citizens and permanent residents are exempt from requiring a work permit. Moreover, if a U.S. company hires someone remotely or via an employer of record, a work permit is not necessary.
Applicants must complete Form I-765 and submit it with supporting documents like passport copies, U.S. visa, previous work permits if any, I-94 travel record, and other specific documents. For detailed information on various work visas, refer to the respective sources.
Certain individuals in the midst of obtaining the aforementioned documents may qualify for a work permit. Additionally, various categories, like students with off-campus jobs linked to international firms, are eligible for work permits.
Employers sponsoring employee relocations to the U.S. must adhere to the Alien Labor Certification prerequisites set by the Department of Labor (DOL). Note that the USCIS will deny work permits to tourists or those without valid documentation.
EU work permit
In the European Union (EU), a work permit is a formal document that grants non-EU citizens the right to work legally within an EU member state. The main objective of this permit is to regulate and manage employment opportunities for individuals from outside the EU.
General principles
The EU introduced the Single Permit Directive to unify the process, allowing third-country nationals to reside and work in a member state. Upon approval, individuals receive both residence and work permissions.
EU citizens have the right to work in any member state without the need for a work permit due to the principle of freedom of movement.
Each EU member state may have its specific requirements and processes for granting work permits to non-EU nationals. Thus, it is crucial to refer to national regulations when considering employment in a particular country.
Application process
Eligibility. Applicants should have a confirmed job offer or employment contract in the EU member state they wish to work in. Some states may require employers to prove that no EU citizen is available to perform the job (a labor market test).
Documentation. Necessary documents often include a valid passport, job offer or employment contract, proof of no criminal record, and health insurance, among others.
Duration. The validity of a work permit varies but is typically linked to the duration of the employment contract. It may be renewable.
Blue Card. The EU Blue Card is a special work permit issued for highly skilled non-EU citizens, allowing them to live and work in an EU member state. It comes with certain privileges, such as shorter processing times and the possibility of moving to other EU states under specific conditions.
Q&A: Other things you need to know about work permits
1. Is a work permit mandatory worldwide?
Yes, in most cases. Each nation has its regulations and criteria for work permits. For instance, European Union nations have a unified system. In France, employers must demonstrate the absence of local expertise, while in Germany, job-seeker visas are available. The U.K. and Singapore offer diverse routes for work permit applications.
2. What is the duration of a work permit's validity?
The U.S. EAD typically spans one year, but the duration varies based on other visa statuses.
3. Is a work permit synonymous with a work visa?
No. A visa usually grants entry and residence in a country for a stipulated duration. Some visas allow work, like digital nomad visas. Conversely, a work permit specifically grants the right to earn in a foreign land, occasionally irrespective of visa status.
4. What if one works without a permit?
Operating without a valid work permit in the U.S. breaches federal and state regulations. Consequences include complications with green card applications, re-entry bans, and potential future visa restrictions. It's crucial to remember that legal repercussions differ by nation. For secure and accurate work permit applications, consider consulting an immigration attorney.
5. How long after the application will I wait for a work permit?
After sending your work permit application to USCIS, expect a response in about 2–7 months. Certain application types, such as those for asylum, may be processed faster. Within 2-3 weeks of submitting, USCIS should provide you with a confirmation receipt. You can monitor the progress of your application on the USCIS website using the receipt number provided.
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We recommend you check out official web resources to get more information about immigration and work permits and always stay updated about the changes in the immigration laws.
