Proposed Changes to Exempt Status

The DOL released proposed changes to the Exempt Status wage test recently. The current regulations state an employee must pass the Salary and Duties tests to be considered an exempt employee. The salary basis test today requires the base salary of an employee to be at least $23,600. The proposed changes for the salary basis test are to raise that amount to $50,440. That is a 113% increase that will more than likely be effective 1-1-2016.

Other proposed changes include increasing the HCE salary levels, determining if non-discretionary bonuses should be included in calculating the standard salary, and provisional changes to the Executive, Administrative and Professional workers classifications. The increase to the salary test also will include annual automatic increases based on the Consumer Price Index.

If you would like to read more about this, visit the proposed rule-making site for the DOL here.

The DOL is accepting comments through September 4, 2015, all employers are encouraged to share their opinions about these proposed changes here.

Important Date:

August 1, 2015  - Minnesota increased minimum wage to $9.00 for large employers and $7.25 for small employers.   

Need a guide to each state? Find it here 

Contact Us:

If you have questions regarding the information provided in this post, you can contact us at 800-880-4015, or email us at info@abg-mn.com.

2014 Year End Processing Deadlines for Retirement Plans

As 2014 comes to a close, our retirement plan administration department would like to thank you for your continued partnership and remind you of the important deadlines for processing your payroll contributions and distributions.

Here are a few important dates to keep in mind to ensure your last payroll files of 2014 are processed in time to reflect on the December 31, 2014 valuation. Please have electronic information to us by December 26, 2014. The dollars for these contributions must be received at the investment company prior to December 30, 2014. If we ACH the money for your account, we need to receive your file by Noon Central Time (CDT) on December 26, 2014.

Submitting Your Final Payroll
When submitting your final payroll file of 2014, please take note of the pay period end date. It’s very possible it could reflect a January 2015 date, as not all pay schedules will end on 12/31/2014. If you notice a 2015 end date but would like your contributions processed in 2014, please feel free to contact us prior to submitting the file and we will be more than happy to modify that date to ensure your file is processed in the correct plan year.

Bonuses
Bonus payroll files are just as important and require the same amount of attention as a regular payroll. Please contact us so we can open additional pay schedules and assist you in getting these files uploaded and processed in a timely manner.

Happy New Year
As the year ends, we think about all we are grateful for. Our relationship with you is one thing we treasure. Thank you for the opportunity to serve you. We wish you a happy holiday season and much success in the New Year.

The Authors: Corrine Mattson and Amy Newman

abgncs.com/RetirementAdministration

cmattson@abg-mn.com

anewman@abg-mn.com

Disclaimer: This blog is of an informative nature and should not be taken as advice. Please work with the appropriate parties for those services.

What Makes an Exempt Employee, Exempt?

An exempt employee is an employee that is exempt from both minimum wage and overtime pay. In order to qualify as an exempt employee, the FLSA has created regulations for both the job duties and weekly salary amounts that must be met.  An exempt employee cannot be deemed exempt based on their job title; it must be based on the duties of their position.  There are several types of exempt employee categories that the employee’s job duties may fall under:  executive, administrative, professional, computer and outside sales employees. 

In addition to the job duties, the employees must meet certain salary requirements. The employee must be paid a salary of no less than $455.00 per week or an hourly rate of $27.63, but these salary requirements do not apply to outside sales employees, teachers or doctors.  They must also be paid for the entire salary for any week in which the employee performs any work.  This is regardless of how many days or hours are worked.   There are only a couple circumstances in which an employer may make a deduction from pay, but in order to do so, the employee must be absent from work for one or more full days for personal reason other than sickness or disability. 

The Department of Labor (DOL) has several tools and resources available to assist employers in making this determination.  For more facts on the different types of exempt employees and the salary requirements, visit the link below.  This DOL site also includes a test to help you decide if your employees meet the qualifications of “exempt.”

http://www.dol.gov/whd/regs/compliance/fairpay/fs17g_salary.pdf

The Author: Alysha Frie, FPC

Payroll Sales Consultant

http://www.abgncs.com/payroll.aspx

afrie@abg-mn.com