Reaction to the New Salary Threshold in the Overtime Rule
After almost four years and a judicial block, the Department of Labor (DOL) issued the final rule for the Fair Labor Standard Act’s (FLSA) salary threshold for overtime as $35,568, which takes effect January 1, 2020.
I know what face you may be making now. One much like the face of the pumpkin that my two young kids carved. You may be smiling because you are glad there is finally a final rule. Yet you may grimace because now you have to comply with the higher salary threshold of the rule.
What has not changed is the three part test for determining employee exemption from over-time, of which the salary threshold is one. Our CPA firm in Central Missouri is here to review the three part test briefly in this week's blog. For further questions on this subject, please give our accounting firm in Central Missouri a call. All phone numbers for the four Wilson Toellner CPA offices can be found on our website at www.WTCPA.com.
Salary Basis Test
The employee must be paid a predetermined and fixed salary.
Salary Level Test
The amount of salary paid must be at least $35,568, effective January 1, 2020.
Duties Test
The employee’s job duties must primarily involve executive, administrative or professional duties.
It takes all three tests met for an employee to be exempt from overtime. The duties test is often overlooked by employers. It is a good idea to take the time to evaluate each employee to determine if changes are necessary to their exempt status.
As a result of the increase in the salary threshold, an expected 1.3 million more workers will be eligible for overtime. Which means, more time tracking. We have suggestions for utilizing tech solutions to track time for employees.
QuickBooks Online Time Tracking
Time tracking only users are free if you use QuickBooks Online for your accounting and payroll. Employees just need an email address and can record time on their mobile device or computer.
T-Sheets
T-Sheets allows clocking in and out, reviewing, editing, and approving of hours from any Android and iPhone device. This information syncs automatically with QuickBooks Online making payroll hour transfers seamless.
Work with us to help evaluate what this final rule means for your small business and how we can integrate technology into your current processes to make time tracking seamless. At Wilson Toellner CPA, our mission is to deliver results and create experiences that enhance the well-being of our clients, our team, and our communities. To do this effectively, we strive to maintain an understanding of what truly matters to those we serve. Then, upon the foundation of deep, communication-driven relationships, we provide tools, expertise, and strategies that save time, remove stress, and help our clients enjoy their lives and businesses more than ever. For more information or to schedule a consultation with one of our professionals, please give us a call. We have four locations throughout Mid-MO, one office in Sedalia, Marshall, Camdenton, and Lake Ozark! All phone numbers and office addresses can be found on our website at www.WTCPA.com.
Written By: Katie Swanson, CPA, CVA
I know what face you may be making now. One much like the face of the pumpkin that my two young kids carved. You may be smiling because you are glad there is finally a final rule. Yet you may grimace because now you have to comply with the higher salary threshold of the rule.
What has not changed is the three part test for determining employee exemption from over-time, of which the salary threshold is one. Our CPA firm in Central Missouri is here to review the three part test briefly in this week's blog. For further questions on this subject, please give our accounting firm in Central Missouri a call. All phone numbers for the four Wilson Toellner CPA offices can be found on our website at www.WTCPA.com.
Salary Basis Test
The employee must be paid a predetermined and fixed salary.
Salary Level Test
The amount of salary paid must be at least $35,568, effective January 1, 2020.
Duties Test
The employee’s job duties must primarily involve executive, administrative or professional duties.
It takes all three tests met for an employee to be exempt from overtime. The duties test is often overlooked by employers. It is a good idea to take the time to evaluate each employee to determine if changes are necessary to their exempt status.
As a result of the increase in the salary threshold, an expected 1.3 million more workers will be eligible for overtime. Which means, more time tracking. We have suggestions for utilizing tech solutions to track time for employees.
QuickBooks Online Time Tracking
Time tracking only users are free if you use QuickBooks Online for your accounting and payroll. Employees just need an email address and can record time on their mobile device or computer.
T-Sheets
T-Sheets allows clocking in and out, reviewing, editing, and approving of hours from any Android and iPhone device. This information syncs automatically with QuickBooks Online making payroll hour transfers seamless.
What Does This Final Rule Mean For Your Business? Find Out With Our Mid-Missouri CPA Firm!
Work with us to help evaluate what this final rule means for your small business and how we can integrate technology into your current processes to make time tracking seamless. At Wilson Toellner CPA, our mission is to deliver results and create experiences that enhance the well-being of our clients, our team, and our communities. To do this effectively, we strive to maintain an understanding of what truly matters to those we serve. Then, upon the foundation of deep, communication-driven relationships, we provide tools, expertise, and strategies that save time, remove stress, and help our clients enjoy their lives and businesses more than ever. For more information or to schedule a consultation with one of our professionals, please give us a call. We have four locations throughout Mid-MO, one office in Sedalia, Marshall, Camdenton, and Lake Ozark! All phone numbers and office addresses can be found on our website at www.WTCPA.com.
Written By: Katie Swanson, CPA, CVA
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