PAYROLL TIPS

By Burke Brown

A day in the life of payroll nerds!  We were sitting around reading the 2012 American Payroll Association State Laws book that is so thick you need a crane to move it.  Here’s some helpful information I wanted to share on some common questions.

What’s an Exempt vs. Nonexempt employee?

Exempt employees are employees who, because of their positional duties and responsibilities and level of decision making authority, are exempt from the overtime provisions of the Fair Labor Standards Act (FLSA).

Non-exempt employees are employees who, because of the type of duties performed, the level of decision making authority, and the method of compensation, are subject to all Fair Labor Standards Act (FLSA) provisions including the payment of overtime. Non-exempt employees are normally required to account for hours and fractional hours worked.

For those hourly (non-exempt) employees you are responsible to keep track of the following:

Name

Address

Occupation

Hours worked each day and week

Amount of compensation paid each pay period

Rate of pay

Age (if the employee is a minor)

The length of time these records need to be kept varies by state but 3 years is the most common amount of time.

With the election coming up there are laws that you need to be aware of as a business owner/manager…..

While there are no federal laws that require employers to grant employees time off to vote, most states do have laws.  Usually, these laws address situations where the employee would otherwise not have sufficient time to vote outside of working hours.  If that is the case, the employee may have to request time off before the day of the election.  The employee must then be given time off to vote and may also have to be paid for the time spent voting.  Depending upon your state, some other issues to consider are the “time off to vote” provisions, whether the employee must request the time off, and whether the employee must be paid for time spent voting.  So, for example, in Utah an employee must ask for time off prior to election day and the employer must give 2 hours unless the employee has 3 or more non-work hours in which he/she can vote.

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