Common payroll
13 Jan

Contact us on WHATSAPP for quick response. You can also start a LIVE CHAT session to place an order without any hassle. We recommend you to contact us even after placing the order using our forms.

Disclaimer: Services provided here are only for Novelty, Education and Entertainment purposes only.

Common payroll mistakes

Incorrectly classifying employees exempt from classification

There is a way to categorize employees by two methods that are exempt. nonexempt. What is the biggest difference between exempt and nonexempt employees? There are no overtime pay rates for those who work for companies that are exempt. Federal law mandates that you pay nonexempt employees overtime compensation for longer than 40 hours per week. State laws may differ Common payroll.

If you incorrectly classify an employee that isn’t exempt as exempt, then that worker isn’t eligible for the overtime pay. This means that you’re required to repay overtime wages even if they’re actually an employee who isn’t exempt. Also, you could be held accountable to fines or penalties.

What can we do to keep from making this mistake?

Make sure you read the Fair Labor Standards Act (FLSA) guidelines for exempting employees. In general, employees are only exempted under the following situations:

They are paid a salary.

You have to pay them an amount that is at least $35,568 for the year or $684 per week, AND

The employee is accountable for managerial or executive work duties which directly impact the operations of the company.

States may have more stringent rules regarding who is or shouldn’t be exempted. Contact the state office of your state for more information.

Incorrectly calculating overtime wage

Are your employees correctly classified as employees? Do they qualify as employees who are not exempt? If yes then you must compensate them for overtime. It is also important to determine overtime correctly.

The FLSA requires employers to compensate workers 1.5 times their regular pay rate, or an hour and a half for every hour of work for more than 40 hours a week. If, for instance, you pay your employee at the rate of $10 per hour, you must pay them $15 for every second of their overtime ($10 1.5 times 1.5).

States might have different rules for the hours of work and time. For example, California requires overtime pay for any worker who works more than eight hours over the course of the day.

In certain cities, there could be overtime wage laws that differ from state and federal laws.

In the event that you fail to pay overtime compensation the employees that earn overtime pay can result in fines and interest. Additionally, you will have to repay the wages of the employee.

The words and views of John Li, Co-founder and CTO of Fig Loans Overtime calculations Common payroll are crucial. He said:

If you fail to calculate the correct amount of overtime your employee earns, it could mean you’re required to pay liquidated damages. This is a significant sum of money for small entrepreneurs to pay, so, be sure to make the correct calculations and ensure that your employees are able to fill in the timesheets .”

How can you avoid this error

It is important to review the laws of your state and local jurisdiction before determining the regulations for overtime wages based on the location where your business is located. If you employ employees from different cities or states, make sure to review the laws in the area they reside as well.

Also, make sure you keep track of the hours worked by your employees. You may want to think about the use of software for time and attendance in order to analyze and monitor the hours your employees work throughout the week and on a daily basis. If you don’t employ software for monitoring hours, ensure that you verify the math before adding all the employees’ hours.

Contact us on WHATSAPP for quick response. You can also start a LIVE CHAT session to place an order without any hassle. We recommend you to contact us even after placing the order using our forms.

Disclaimer: Services provided here are only for Novelty, Education and Entertainment purposes only.

Leave a Reply

Your email address will not be published. Required fields are marked *