Hello all,
Is there a way to conviently provide salaried employees overtime pay beyond 40 hours or PTO compensation time for those hours?
In the past when I worked for large corporations, we were “salary exempt” employees but still received either PTO hours to be used later, or our hourly rate as overtime pay. But not exactly sure how this was executed on the financial/business side.
I’ve heard of establishing a second company to pay those employees “hourly” whenever they go beyond the 40. But that doesn’t seem like it would be the easiest option.
We are a government contractor, so we do track hours against each project.
Thank you!
Terrific gesture on your part!
Assuming your employees are salaried/exempt, Take their annual pay, dived by 52 for their weekly pay and divide by 40 hours for their hourly equivalent wage. Multiply the hourly wage and 1.5 (for time and a half) times their additional hours. If you decide their additional pay should be based on straight time, just use their hourly wage times the number of hours.
Easiest method; Your payroll company should have an area next to each employee with their equivalent hourly wage.
For additional PTO instead of pay, just calculate hours they work and give them the equivalent for time off.
Your payroll company can confirm the tax rate (I’m pretty sure it’s the same as regular income or PTO).