Compensation Facts of Employees of your company

Employee Compensation Facts

Employees are a huge part of what makes businesses so successful. Without them, depending on the business, very little would get done. Seeing as how employees work hard and help keep things running smoothly, employees are expected to pay them and keep on top of payroll. Whether they decide to handle payroll from within or outsource, it is their choice, but when it comes to compensating employees, things are expected to be done accurately and on time.

Here are a few compensation facts that all employers should be aware of when opening a new business.

Employee ClassificationEmployee Compensation Facts

The Fair Labor Standards Act(FLSA) requires a number of things from business owners and companies. One of these requires is that every position at your company have a classification of exempt or non-exempt. What this means is that certain rules and regulations will need to be adhered to for certain employees. For example, there may be overtime or minimum wage requirements for a non-exempt employee, but not for an exempt employee.

Minimum Wage

Every state has a minimum wage require. According to FLSA, employees who are considered non-exempt have to be paid a minimum wage of $7.25 per hour, however, this is only if the state hasn’t mandated a higher minimum wage. In that case, employers are required to pay that amount per hour. This amount is something the employer is expected to keep track of, in case there are increases and they have to ensure their employees are being paid the correct amount.

Overtime

The FLSA requires employers to pay non-exempt employees an overtime