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?
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,
“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,
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,