Improper exempt worker classification and non-compliance with regulations pertaining to them generate some of the largest back pay awards and fines ever recorded.  Penalties and back wages are computed with the same formula for all companies--large or small. Exempt employee classification and compliance infractions can be devastating or ruinous to any employer.

 

And although payroll rarely makes the decision on which employee is classified as exempt it is critical that they understand the regulations regarding how the determination should be made.  And it is even more critical that the payroll department understand and apply the strict rules for paying employees who are classified as exempt. The department must ensure that all exempt employees are paid on a salary basis and that no exempt employee’s wages are docked improperly. Remember the penalties for errors apply to both the classification of the worker and the actual payment of salaries when it comes to exempt employees. More importantly the penalties are applied to all workers in the same job classification under the same manager when a mistake is made on paying an exempt employee not just the one worker who was paid incorrectly.

 

In this webinar Vicki will discuss the four classification of exempt employees permitted under the IRS Code including executive, administrative, professional and outside sales.  We will examine the salary level test and the salary basis test.  We will determine what deductions can be properly made from an exempt employee’s salary and which, if made, would violate the salary basis test and result in penalties for the employer.

 

Payroll and human resources professionals who must determine who is exempt and handle the payment of wages for exempt employees.