What is a salaried worker?
A salaried worker is an employee who receives a fixed, regular paycheck based on an annual salary rather than hourly wages. Salaried workers typically earn the same amount each pay period, regardless of the hours worked.
For businesses using Homebase payroll, correctly classifying and managing salaried workers ensures accurate payroll processing, compliance with wage laws, and streamlined tax reporting.
How does salaried pay work?
Salaried employees receive a predetermined salary that is divided across pay periods, such as:
- Weekly (52 paychecks per year)
- Biweekly (26 paychecks per year)
- Semi-monthly (24 paychecks per year)
- Monthly (12 paychecks per year)
Employers must ensure that salaried workers are paid consistently and that payroll deductions (such as taxes and benefits) are calculated accurately.
Salaried vs. hourly employees: Key differences
Are salaried workers eligible for overtime?
Not all salaried workers are exempt from overtime. Under the Fair Labor Standards Act (FLSA), salaried employees must meet specific requirements to qualify for exempt status, including:
- Earning at least $684 per week ($35,568 per year)
- Performing executive, administrative, or professional job duties
If salaried employees do not meet the exemption requirements, they must be classified as non-exempt and receive overtime pay for any hours worked over 40 per week.
How does payroll work for salaried employees?
Payroll for salaried employees generally involves:
- Consistent paycheck amounts – Salaries are divided across pay periods.
- Tax and benefit deductions – Federal and state taxes, health insurance, and retirement contributions are withheld.
- Time tracking is not necessary (if exempt) — Time tracking is typically unnecessary, except for paid time off or specific project management.
Homebase payroll helps businesses automate salaried employee pay, tax calculations, and benefits deductions, making the process easier.
How Homebase simplifies salaried employee management
Handling salaried employees’ payroll manually can be time-consuming, but Homebase payroll streamlines the process by:
- Automating salary calculations and payroll processing
- Automatically tracking benefits and deductions
- Ensuring payroll tax compliance for salaried employees
- Generating detailed payroll reports to assist with financial planning
Get started with Homebase to take the stress out of managing salaried employee payroll.
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