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…
-Are preschool teachers subject to overtime-
The Department of Labor, which enforces the ELSA, does not consider preschool and day care workers to be “teachers” under the provisions of the FLSA. The Department takes this position even if the pre-school program incorporates educational activities designed to prepare young children for kindergarten. Given these facts, here are some general principles relating to…
What Counts as Overtime:
Federal and most state laws impose a weekly overtime standard, which means that nonexempt employees are entitled to overtime for every hour beyond 40 that they work in a workweek, regardless of how many hours they work in a day. For example, Alex is a nonexempt employee who works 12 hours on Monday and six…
Exempt or Nonexempt? Actual Job Duties Matter, Not Job Title
Determining an employee’s proper classification requires a fact-driven assessment that looks beyond a job description and examines exactly what the employee does on a daily basis and performed during the last two years. It is not uncommon for an employer to state, “we pay all of our employees as salaried or a set rate for…
How long should we keep employment records
We always recommend to keep all employment tax records for at least six years after filing the 4th quarter for the year. Records should include: Your employer identification number. Amounts and dates of all wage, annuity, and pension payments. The fair market value of in-kind wages paid. Names, addresses, social security numbers, and occupations of…
Best Practices for Churches with 1099 Individuals
IRS Form 1099 reports to the Federal government various types of taxable income paid to contractors and vendors. There are versions of the 1099 to report payments for services as well as interest, dividends, and real estate sale proceeds. This form is issued by churches to guest speakers, pulpit supply, etc., who provide services in…
Payroll Retention Period
Churches must record and preserve specified information and records to show compliance with Fair Labor Standards Act (FLSA) provisions relating to minimum wage, overtime, equal pay and child labor, for each employee COVERED by FLSA Retention Period: 3 Years Required Name, address Date of birth Gender, occupation Workweek days If paid O/T… regular pay rate…
IRS INDEPENDENT CONTRACTOR CHECKLIST
Mistakenly classifying an employee as an Independent Contractor can result in significant fines and penalties. The Internal Revenue Service (IRS) uses twenty factors to determine whether or not an employer has enough control over a worker in order for that individual to be classified as an employee. Designed only as a guideline, this checklist can…
