Question: We have an employee claiming they shouldn't be classified as exempt from overtime. It if turns out they're right, what are the penalties for misclassification? Answer: The cost of misclassification can be steep and will depend on several factors, such as how many employees are...
Labor Day is celebrated the first Monday in September to honor and recognize the American labor movement and the works and contributions of laborers to the development and achievements of the United States. Both Payroll Partners and the Federal Reserve will be closed in observance of...
Technology is transforming the retirement transition for everyone, including those without financial advisers. Digital tools are interactive experiences designed to engage users with a combination of personalization and gamification, making their retirement experience both real and relatable. DC retirement plans are meeting participants on their own...
Employers are generally required to withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. Alternatively, employers are not generally required to withhold or pay any taxes on payments to independent contractors. Moreover, according...
Deductions made from wages for items such as cash or merchandise shortages, required uniforms, and tools of the trade are illegal if they reduce the wages of employees below minimum wage or reduce the amount of due overtime pay. Required Deductions Employers are required to make...
Question: We are considering closing the office the day before an upcoming holiday, giving employees an unpaid day off. How would this work for our exempt employees? Answer: The Fair Labor Standards Act generally requires that exempt employees—employees who are exempt from the law’s overtime requirement—be paid...
Question: We have an employee claiming they shouldn't be classified as exempt from overtime. If it turns out they're right, what are the penalties for misclassification? Answer: The cost of misclassification can be steep and will depend on several factors, such as how many employees are misclassified,...
Question: What is the difference between a discretionary bonus and a nondiscretionary bonus? Answer: A discretionary bonus, as its name implies, is a bonus awarded at the sole discretion of the employer and is awarded without employee expectation. In other words, there’s no promise or agreement...
Question: A new employee told coworkers that she received a signing bonus. Now they’re upset, saying they’ve been here longer and haven’t gotten anything extra. What should I do about this situation? Answer: First, don’t reprimand the new employee who shared her salary information. Discussing pay...
Question: An employee hasn't shown up to work the last few shifts and isn't responding to messages. Can we make a policy that employees who quit without notice won't get their final check? Answer: No, federal law requires you to pay employees for all hours they have worked....