Calculating Salaries for Non-Exempt Employees
- Topics:
- Payroll
- Source:
- Payroll Taxes.com
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Overview: In an effort to cut payroll administrative costs many employers will pay some or all of their non-exempt employees a salary, especially if the employee has a fixed workweek. The employee’s salary is usually stated in terms of a specific frequency of payment (such as an annual salary) or according to the employer’s payroll period (such as a biweekly salary). Salaries are an acceptable alternative under the FLSA, but employers must remember one basic fact: The employee is still subject to the FLSA. That means the employer must be able to calculate the employee’s regular rate of pay, and the employee is entitled to additional compensation if he works more than 40 hours in a workweek. Therefore, if a non-exempt employee is paid a salary, the employer and the employee must come to an understanding that the salary covers a fixed number of hours in each workweek. [29 CFR 778.113(a)] So the employee’s regular rate of pay can be calculated by dividing the number of hours expected each week into the weekly salary. This article focuses on paying non-exempt employees a salary.
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Format: HTML | Date: Jan 2003 | Pages: 1
