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Salary Alternatives for Non-Exempt Employees

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 Raleigh, North Carolina. 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.comThis e-mail address is being protected from spambots. You need JavaScript enabled to view it . is a free online resource featuring a compilation of research, collaboration and web tools for use by payroll professionals and more including information about payroll tax articles, federal tax information and state tax information.

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