Federal law requires that all non-exempt employees are paid at a rate of one and one half times their regular rate of pay for all hours worked over 40 in a workweek. This is pretty straightforward to figure out when a payroll is processed on a weekly or biweekly schedule because the number of days in the pay period remain the same. But for employers who pay their employees semi-monthly (i.e., the 1st and the 15th of the month) the number of work days fluctuate from one pay period to the next depending on the way the calendar falls. Continue reading
Let’s discuss a situation that’s somewhat common among employers. You have an employee, Sharon, who has used all of her allowed paid time off (vacation, personal, sick, etc.) for the year. Sharon’s mother falls ill with a serious medical condition and Sharon needs to take additional time off work to help care for her mother, but she doesn’t have any paid time off available. Sharon’s coworker, Kim, has a lot of accrued paid time off with no vacation plans so she asks you if she can donate some of her available paid time off balance to Sharon to be able to use during her absence so that Sharon doesn’t have to take unpaid time off work to care for her mother. Can you allow Kim to donate her paid time off to Sharon?
You can. But it’s not that simple.
Oregon employers must begin withholding a new statewide transit tax beginning July 1, 2018. There is no employer paid portion of the new transit tax; it is paid entirely by individual employees through payroll withholding. The tax must be withheld from wages of Oregon residents (regardless of where the work is performed) and wages of nonresidents of Oregon who perform services in Oregon. Continue reading
The Fair Labor Standards Act (FLSA) requires that all employees be paid at least minimum wage for all hours worked as well as pay of at least one and one half times their regular rate of pay for all overtime hours worked over 40 hours in a workweek. Employees who are classified as exempt are not subject to these minimum wage or overtime requirements.
In order to be classified as exempt, the employee must be paid on a salary basis of at least $455 per week. In addition, the employee’s work must meet certain duties tests as established by the Department of Labor (DOL). You can read more about this here.
The Department of Labor (DOL) has recently released a statement adopting a “primary beneficiary” test to be used when determining whether an intern for a for-profit employer should be classified as an employee under the federal Fair Labor Standards Act (FLSA). Continue reading
The Federal Fair Labor Standards Act (FLSA) requires that employers pay all non-exempt employees at a rate of at least one and one half times their regular rate of pay for each hour worked over 40 hours in a workweek. While this may seem straight forward, there are many misconceptions regarding when overtime is to be paid and to which employees. Below is a list of five of the top myths associated with overtime pay. Continue reading
Each year there are a number of payroll limits that may change. In preparation for 2018, below is a list of changes that will take effect beginning January 1, 2018 (unless otherwise noted).
- Tax bracket changes (federal) issued by the IRS on October 19, 2017 in Revenue Procedure 2017-58 – click here for more information.
- Social Security limit will increase from $127,200 to $128,400 (NOTE: The Social Security Administration had previously announced a limit of $128,700 but that has been revised to $128,400).