Table of Contents
What is a pay exemption?
Exempt employees are generally “exempt” from the FLSA regulations governing overtime pay and minimum wage. States differ in overtime laws, but federal regulations use a 40-hour workweek as the measurement. An employer is not obligated to pay overtime wages when an exempt employee works more than 40 hours in a workweek.
What is an exemption test?
The salary exempt test is a part of the Fair Labor Standards Act (FLSA) which is used to determine whether employees are exempt or non-exempt from overtime pay. The FLSA covers the entire U.S., but most states also have their own regulations and laws dictating overtime exemptions.
What is the definition of an exempt employee?
Exempt: An individual who is exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) because he or she is classified as an executive, professional, administrative or outside sales employee, and meets the specific criteria for the exemption. Certain computer professionals may also be exempt.
What does it mean to be paid on a fee basis?
A fee basis means a fixed charge for work performed. These arrangements are characterized by the payment of an agreed sum for a single job, regardless of the time required for its completion.
What is exclusion pay Covid?
Q: How is exclusion pay calculated for employees excluded from the workplace due to exposure to COVID-19 at work? A: The rate of pay for exclusion pay is an employee’s regular rate of pay for the pay period in which the employee is excluded.
What is the salary exam?
The salary basis test is a series of stipulations that may exempt an employee from being eligible for overtime pay. The salary basis test says the employee must be paid a predetermined, fixed salary. This means their salary cannot go up or down based on the quality or quantity of their work.
How do I qualify for exclusion pay?
An employee who was excluded from work because of a workplace COVID-19 exposure should receive exclusion pay if: 1) the employee was not assigned to telework during that time; and 2) the employee did not receive Disability Payments or Workers’ Compensation Temporary Disability Payments during the exclusion period.
How much is 684 a week?
Most notably, the new rule raises the minimum salary an employee must be paid to be exempt from overtime under the FLSA, from $23,660 ($455 per week) to $35,568 per year ($684 per week). The $455 per week threshold (referred to in the rule as the “standard salary level”) had been in effect since 2004.
What does it mean to be unable to work including telework for COVID-19 related reasons?
You are unable to work if your employer has work for you and one of the COVID-19 qualifying reasons set forth in the FFCRA prevents you from being able to perform that work, either under normal circumstances at your normal worksite or by means of telework.
What is a sales tax exemption certificate?
Sales Tax Exemption Certificates. In most states, the sales tax is designed to be paid by the end-consumer of taxable goods or services. If you are purchasing goods that you intend to resell, you can make purchases from your suppliers tax-free by acquiring the appropriate Sales Tax Exemption Certificate for your state. States have varying rules…
What is an exemption certificate in New York State?
Certain sales are always exempt from tax. This means a purchaser does not need an exemption certificate to make purchases of these items or services. For a list of items and services that may be purchased tax-free without an exemption certificate, see Publication 750, A Guide to Sales Tax in New York State. Who may use exemption certificates
Who can make purchases with an exemption certificate?
you make purchases as an agent or employee of tax-exempt nonprofit organizations or government entities. In some cases, you must also have a valid Certificate of Authority to use an exemption certificate (see the chart at the end of this bulletin).
What is an exempt highly compensated executive?
Thus, for example, an employee may qualify as an exempt highly compensated executive if the employee customarily and regularly directs the work of two or more other employees, even though the employee does not meet all of the other requirements in the standard test for exemption as an executive.