May 2016 - HBL CPAs

May
31
2016

Overtime Pay: Are your employees Exempt or Non-Exempt?

Under the Fair Labor Standards Act (FLSA) employers are expected to classify their employees as either exempt or nonexempt.

What’s the difference between the two?

Exempt Employees

The FLSA has multiple exemptions under specific categories of employers and employees exempted from overtime requirements. The most general exemptions include:

Employee must be paid on a salary basis
Employee must receive a minimum salary of at least $913/week (As of December 1,

May
20
2016

Store or Shred? This Is How Long You Should Keep Your Tax Records

“Now that my income tax return has been filed and the filing deadline has passed, I can shred all my tax documents, right?” Wrong!

After you file your tax return, you should keep your tax return and records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out. The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund,

May
11
2016

What if a Nonexempt Employee Works Overtime Performing Multiple Jobs with Different Pay rates?

If you have nonexempt employees who work more than 40 hours in a single workweek performing two or more different jobs with different pay rates, you need to make sure that you are paying them properly. The Fair Labor Standards Act (FLSA) allows two different approaches to computing the rate for which overtime is paid:

1) The weighted average, which is the default approach outlined in 29 C.F.R. 778.115; or

2) The established rate associated with the job that caused the overtime to occur,