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 the owner of RWD Financial Support Service, located in Columbia, Maryland. Mr. Ditmer provides support and consulting services in the areas of bookkeeping, accounting, payroll and human resources. With over 25 years of experience Mr. Ditmer has worked in a wide variety of industries, and he worked as a Controller in four different businesses including a land planning/landscape architecture firm in Philadelphia, PA, a private dining and catering facility in Wilmington, DE, an IT support company in Glastonbury, CT, and a commercial construction management firm in Columbia, MD. Mr. Ditmer has also spoken at conferences and provided training on various issues, and he has written a number of articles in the field of payroll and payroll taxation. He is a member of the American Institute of Professional Bookkeepers and the American Payroll Association, and qualified as a Certified Payroll Professional in 2000. He can be reached at rwdfinancial@yahoo.com.
