Question

Stark Company has five employees. Employees paid by the hour receive a $12 per hour pay rate for the regular 40-hour workweek plus one and one-half times the hourly rate for each overtime hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5 percent of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August.

Answer 1

Some workers are entitled to acquire extra time pay once they work additional hours. Eligibility is centered on weekly profits and hours worked. Extra time pay is calculated situated on a forty-hour workweek and overtime pay for eligible employees is required for any hours labored over those 40 hours. Time beyond regulation pay rules are governed by way of the reasonable Labor necessities Act (FLSA) and, in some states, by way of state overtime laws.

In states the place an employee is subject to each state and federal additional time laws, additional time is paid according to the commonplace to be able to furnish the higher amount of pay. Verify your State division of Labor website for knowledge on time beyond regulation pay standards to your vicinity. Employers have got to comply with each federal and state law to stay compliant.

What is time beyond regulation Pay?
Staff currently earning less than $455 per week, which is $23,660 per yr, are presently guaranteed federal overtime safety. There are exemptions for tremendously compensated employees who normally and most often perform any person or more of the exempt tasks or tasks of an government, administrative, or reputable worker.

In step with the division of Labor, workers blanketed by way of the Act must acquire extra time pay for hours labored in way over forty in a workweek at a cost now not not up to time and one-half their common charges of pay.

Double Time Pay

Double time is a rate of pay double the average amount a person receives for natural hours worked. So, in case your common price of pay was $eleven.00 an hour, double time pay could be $22.00 per hour. Double time is normally paid for engaged on federal holidays or when hours work exceeding the common workday.

When Double Time is Paid

There are no federal laws that require an enterprise to pay double time for extra time worked. The reasonable Labor requirements Act (FLSA) has no requirement for double time pay.

Nevertheless, state legal guidelines may just furnish for time beyond regulation or double time. For illustration, in California, double the worker's ordinary expense of pay must be paid for all hours worked in excess of 12 hours in any work day and for all hours labored in excess of eight on the seventh consecutive day of work in a piece week. Investigate along with your state department of Labor for rules for your area.

Double time is most mostly an agreement between an enterprise and worker (or the worker's consultant). An agreement for double time may also be itemized in a labor contract or union contract.

How extra time Pay is Calculated
time beyond regulation pay is not robotically awarded for work accomplished on Saturdays, Sundays, vacation trips, or normal days of relaxation unless hours labored on these days push the weekly whole over 40 hours.
All non-exempt workers who work over 40 hours for the duration of a workweek have got to be paid at a fee of as a minimum one and one-half times (in most cases known as time and a 1/2) the worker's typical hourly rate. So a employee incomes $10 per hour, who worked a 50-hour week can be entitled to 10 time beyond regulation hours at $15 per hour.  

Overtime pay applies to non-exempt salaried employees as good as hourly workers. For example, a non-exempt salaried employee who's paid $600 per week can be guaranteed at least $22.50 per hour for each and every hour worked over forty ($600/40 = 15 X 1.5 = $22.5 per overtime hour).

Beneath the fair Labor standards Act, an worker's workweek is a "fixed and more commonly recurring interval of 168 hours - seven consecutive 24-hour durations." The workweek can on any day or time as long as the hours are continuously calculated for that same period. Hours can not be averaged over a two or four-week pay interval. The Act does permit employers to designate another workweek for distinctive courses of employees.

Hospitals and residential care amenities are allowed to calculate overtime founded on a interval of 14 consecutive days rather of the or else required adherence to a seven consecutive day period. For illustration, a health center worker might work 30 hours in week probably the most interval and 50 hours in week two of the interval for a complete of eighty hours. This worker would no longer be entitled to any additional time on account that she did not common more than forty hours per week.

Non-exempt staff can be paid on a weekly, bi-weekly, semi-monthly, or monthly basis, and additional time is on the whole paid in the course of the interval that it was earned.

Employees now not Entitled to extra time
Some workers, often called exempt employees aren't entitled to time beyond regulation pay. To be labeled as exempt, a worker have to be earning over $455 per week. That amount could vary in areas where states laws keep watch over additional time pay. The rules below the fair Labor requirements Act also have extra time exemptions for "totally compensated" workers who probably and frequently perform any person or extra of the exempt obligations or duties of an government, administrative, or legit worker.  

Many different classes of workers are exempt from overtime pay equivalent to taxicab drivers, truck drivers, salespeople, radio and tv station workers in small markets, motion snapshot theater staff, sugar processing staff, and seamen.

Proposed changes to time beyond regulation Pay Eligibility
the next changes to eligibility for overtime pay had been scheduled to go into influence on December 1, 2016:

The salary for eligibility for extra time pay will increase from $455 per week to $913 per week or $47,476 per yr.
The cash threshold for eligibility will likely be updated every three years, founded on wage growth.
These proposed instructions for overtime pay are being litigated in federal court docket:

August 31, 2017: U.S. District court judge Amos Mazzant granted summary judgment in opposition to the division of Labor in consolidated instances challenging the overtime ultimate Rule. The courtroom held that the ultimate Rule's earnings stage surpassed the departmentâs authority, and concluded that the final Rule is invalid.

October 30, 2017: the department of Justice, on behalf of the division of Labor, filed a detect to enchantment this decision to the U.S. Court of Appeals for the Fifth Circuit. As soon as this appeal is docketed, the department of Justice will file a movement with the Fifth Circuit to hold the attraction in abeyance even as the division of Labor undertakes additional rulemaking to examine what the cash degree will have to be.

Although it seems that the department of labor could attempt to alternate the edge for qualifying for extra time, the present additional time pay recommendations will remain in outcomes until the concern is resolved.