by Robert W. Ditmer, CPP*
Time-and-a-half
is a term that we have to work with, but a term that is still
often misunderstood. All payroll professionals are familiar
with the basic requirement of the Fair Labor Standards Act
(FLSA) to pay overtime in certain circumstances. However, the
application of the principle is all too often difficult to
grasp.
Some of the biggest problems payroll professionals face when confronted with
the issues of overtime are the costs associated with the payment of overtime,
the costs of administering the payroll system, as well as the potential costs
if the employer fails to comply with the laws, both on a federal and state
level. Paying an employee a salary often results in cost savings by cutting
the administrative costs associated with issuing a paycheck. But there are
also salary strategies that can actually reduce wage costs.
The Basics of Calculating Overtime Pay
Calculating Salaries for Non-Exempt Employees
The Fluctuating Workweek Method
'Belo' Plans
Other Salary Alternatives? Conclusion.
*The information in this set of articles was first published as a series of
four articles in PAYTECH, the Official Publication of the American Payroll Association, between February and May
2003.
**Robert W. Ditmer, CPP, is Controller of Parker, Cade & Large, Inc., a commercial real estate development and construction company located in Columbia, Maryland. Mr. Ditmer has worked in five different states and has experience dealing with multi-state taxation involving states with reciprocal agreements and those that do not. He can be reached at robertwditmer@yahoo.com.
