Most non-exempt employees in the US earn overtime pay (at 1.5x their regular rate of pay) after 40 hours in a workweek. So, it’s easy to think that if that employee works 46 hours, 6 of those hours would count towards overtime pay. But what happens when some of those hours are vacation or sick hours? Will that affect the employee’s overtime calculations? Yes.
If an employee needs to receive back pay, this means that the employee wasn’t compensated correctly for their work. An employee may be owed back pay for bonuses, promotions, pay increases, or for hours they worked. Whatever the case may be, back pay is something that employers need to take seriously and handle in a timely manner.
Here’s what you need to know:
It’s easy to mistype data when you’re manually entering time records into a payroll system by hand. If you’ve made payroll mistakes in the past, you’re not alone. Studies by the American Payroll Association show us that approximately 40% of business owners make payroll mistakes annually. This results in an average of $845 in IRS penalties every year. In order to avoid this, many business owners have invested in online time tracking services that calculate records automatically. This type of software transfers your employees’ time records to payroll and accounting software platforms with ease, avoiding the need to enter time manually. If you’re manually entering data every pay cycle and you’ve made a payroll mistake, you might wonder how to handle it and, more importantly, when you need to handle it. We can help.
Many businesses are facing economic hardships now that the coronavirus has considerably slowed consumer spending. Without an influx of income, many business owners made tough decisions to cut employee hours and pay throughout the past few weeks. As a result of this change, anxious employees try to figure out how to balance their new financial situations. In response to coronavirus’ economic effect on businesses, the federal government took action to provide relief.
Losing an employee is a confusing and painful time for many people. When a colleague passes away, employers not only grieve the loss of their team member, but they also have to figure out how to move the business forward. Although it feels like it’s not the best time, the business does have to take steps to ensure that the job position is filled again and that the necessary paperwork is taken care of. One of the first things that needs to be handled is the employee’s final wages. What does one do with their final paycheck? What happens to time off? And what taxes should be filed?
Many businesses have employees that get paid multiple pay rates during their shift. This happens when they perform more than one specific job function. For those employees, the hourly rate depends on the job they are working on at the time. Hourly rates by job can vary when employees work in the construction, plumbing, caretaking, landscaping, and many other industries. When you have an employee that works under different rates, you need to make sure that you are calculating their regular pay rate properly for overtime. Unless your employee is specifically exempted, employees working at more than one job rate covered by the FLSA must receive overtime pay at their regular rate and not at the specific rate for the job they are doing when overtime is incurred.
Timesheets.com has a handy calculator for simple regular rate calculations when there are two rates for two different jobs.