Calculating Overtime When a Church Employee Is Paid a Salary
It is fairly simple to calculate how much overtime a nonexempt employee is owed when the employee is paid an hourly wage. But calculating overtime becomes a bit more difficult when the employee is paid on a salary basis. The methods for calculating overtime vary depending on whether the employee’s salary is intended to cover…
Defining the Workweek or Work Period For The Church
The Fair Labor Standards Act (FLSA)’s overtime laws require churches to pay employees overtime when they work beyond a certain threshold, usually 40 hours in a workweek. For most churches, the workweek coincides with the calendar week, running from 12 a.m. Monday to 12 p.m. on Sunday. But churches are allowed to use any fixed…
How Your Church Can Comply With The New Overtime Rules
The FLSA requires covered employers to pay “non-exempt” employees at least the minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. Federal_FLSA_Exemption Guide If your exempt employees earn less than the new salary requirement, they will no longer meet exemption criteria and…
Are You Hiring Temporary Church Employees?
Hiring Temporary Employees Churches often have lots of tax and legal questions when hiring temporary employees. Temporary employees are still employees; not independent contractors. An employee working in a church — whether the job is temporary or permanent, part-time or full-time — is an employee of the church. It is illegal for the church to treat a temporary…
Is Your Babysitter An Employee?
Who’s a Household Employer? The IRS defines a household employer as someone who pays an individual to perform duties in or around their home and has the right to control when, where, how or by whom the work should be performed. Household employees include nannies, senior caregivers, housekeepers, nurses, personal assistants, chefs, estate managers, etc….
5 Tips On Creating PTO Policy For Your Church
In the payroll business, we see many versions of time off policies – it’s rare to have two that are the same. However, one thing we do see with regularity is churches tying themselves in knots trying to implement a policy that they think is fair for everyone. What they end up doing is creating…
5 Steps To Prepare for New Overtime Rules
5 Steps To Prepare for New Overtime Pay Rules Your church will likely face one of the largest challenges in just the next few months. Most churches aren’t ready for the new overtime and worker classification changes to the Fair Labor Standards Act (FLSA) the Department of Labor recently published, which will impact to millions…
FLSA Overtime Changes
If church employees are paid a salary, does that mean they are exempt from overtime? Not necessarily. To be classified as exempt, employees must meet all of the following requirements: Paid on a salary basis Paid a salary that meets or exceeds the minimum requirement Paid their full salary in any workweek in which they…
Who’s Exempt From Wage and Hour Laws?
Probably the most common — and confusing — exceptions to the overtime laws. Employees whom the law defines as “administrative, executive, or professional” need not be paid overtime. To fit into one of these exemption categories, you must be paid on a salary basis and must spend most of your time performing job duties that require…
Which Employees Are Entitled to Earn Overtime Pay
The church must pay overtime to all eligible employees unless they fit into an exception to the law. If you fall into one of these exception categories, you are “exempt” from the federal overtime law, which means you are not entitled to overtime. executive, administrative, and professional employees who are paid on a salary basis independent…
