Employee Pay Types
Whenadding an employee, you will need to select the employee’s Pay Type. Here’s an explanation of the three Pay Types in Patriot Software:
1) Hourly:This employee ispaid by the hour,and iseligible for overtime payaccording to the Fair Labor Standards Act (FLSA) overtime rules. Hourly employees must be paid 1 ½ times their regular hourly rate for all hours worked over 40 hours in one workweek. Hourly employees are considered “non-exempt,” since they are not excused from these overtime rules.
2) Salary:This employeereceives a set amount of pay每个支付期间,regardless of the number of hours worked. Salaried employees who meet certain requirements are considered “exempt” from FLSA overtime rules and thereforedo not earn overtime payif they work over 40 hours in a workweek. There are conditions that must be met in order for an employee to be paid salary and exempt from overtime rules.See more information about FLSA exemptions on the Department of Labor Website.
3) Salary Non-Exempt:This Pay Type is not as commonly used as Hourly or Salary. This employeereceives a set amount of pay每个支付期间,but they areeligible for overtime paybecause they do not meet the requirements to be exempt under the FLSA. Normally, a salary non-exempt employee will be paid the same flat rate even if they worked less than 40 hours in a workweek. However, if they work more than 40 hours, they will receive overtime pay of 1 ½ times their regular hourly rate.