Overtime Rules Changing Again
Here
is a checklist to help employers prepare for the change in
overtime rules to “daily overtime.”
After
January 1, 2000 overtime is earned after 8 hours, be ready
for the change!
1.
Update written policy: Modify your policies to indicate overtime is
earned after 8 hours in a day or 40 hours in a week.
2.
Adjust work schedules:
Make changes to ensure that employees won’t incur
unnecessary overtime.
3.
Revise timecards:
Update your system to identify & track overtime.
4.
Implement a make-up time policy: Allow employees to
“make-up” time off by working in excess of 8 hours in a
day exempt from overtime. There are specific rules to make
this policy functional; feel free to call for details.
5.
Update your meal period policy:
Add a new rule allowing employees to waive a second meal
period after 10 hours.
6.
Train supervisors and payroll staff: Ensure
they understand the new rules and your new policies. Managers
should be aware that they can be personally liable for
overtime violations.
7.
Verify exempt salaries: The
new law requires a minimum monthly salary of $1,993.33 for an
employee to be exempt from the overtime rules. This minimum is
two times minimum wage and will automatically change when
minimum wage changes.
8.
Obtain consents for voluntary alternative workweeks: If
you have employees who wish to work a work week of other than
five 8 hour days (i.e.: four 10 hour days) the employees must
request in writing to continue the alternative schedule
without the daily overtime rules applying.
9.
Implement a formal alternative workweek schedule: If
you wish your entire staff be on an alternative workweek
schedule the employees must approve by means of a secret
ballot in which two-thirds of the workers vote in favor.
Payroll
isn’t simple! For assistance with your payroll processing
call Matt or Marlene at 760-872-1122 or email us at payroll@sierracpa.com
Checklist For Overtime Changes
Sample
Make-Up Time Policy
1.
Make-up time must be performed in the same workweek as the
time off.
2.
Including the make-up hours, an employee can work no more than
11 hours on a make-up day and 40 hours in the week.
3.
The employee must request make-up time in writing.
Planning Now Can Save $$$ in
April
You
have probably heard the old saying “Don’t put off ‘'til
tomorrow what you can do today.” When it comes to paying
taxes on your income, the opposite approach is often the best.
In most cases you won’t want to give the IRS a share of your
hard-earned cash until you absolutely have to. For this reason
timing should play a central role in your tax planning.
Some
things to consider now are;
1.
Maximize your IRA/401(k) contributions.
2.
Defer your year-end bonus until January.
3.
Put investments in your children's name to keep the income off
your return.
4.
Watch income levels to keep Social Security benefits from
becoming taxable
Now is the time to
call Randy or Tony at 760-872-1122, or email at randy@sierracpa.com
to make an appointment. Van Tassell & Paegel CPAs,
helping you keep more of what you earn!
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