employee's current salary is $715 per week, the employee regularly works 50 hours per week, and you want to convert this employee to an hourly employee but keep your costs the same.
Both federal and state regulations require that employees must perform all of the duties enumerated in the statutes (the duties test) as well as conform to the requirement that employers pay exempt
employees on a salary basis (the salary basis test).
For example, if the investor lives in Pennsylvania, which has an income tax, the income from Pennsylvania Turnpike Bonds would be exempt
. The income would be exempt
from both federal and state (and sometimes city) income taxes.
"Additional part-time staff is being considered to minimize the financial impact of having to pay for extended coverage previously provided by exempted
In general, prior rulings addressing joint ventures between tax-exempt organizations and for-profits have indicated that if a tax-exempt organization cedes control to its for-profit partner, the tax-exempt organization will lose exempt
status for its share of the income.
According to New York attorney Blair Soyster, quoted in NEPA's Hotline, reporters and editors whose work requires "invention, imagination, originality and talent" may be exempt
from overtime requirements, while those whose responsibilities are limited to requiring "intelligence, diligence and accuracy" may not be exempt
Only certain deductions may be made from a salaried exempt
employee's salary: 1) full days missed for personal reasons (other than illness); or 2) full days missed for illness, but only if the deductions are pursuant to an established sick leave or PTO plan.
From the White House's perspective, only one option remains: Tax those who are currently exempt
. That's why the White House has endorsed corralling into the system the relatively small number of people whose retirements are secure outside it.
However, under the FLSA, for qualifying employees to remain exempt
from overtime pay requirements, they must receive the predetermined salary each pay period, "without reduction for variations in the quality or quantity of work performed." Exempt
employees must receive the full salary for any week in which they perform any work, without regard to the number of hours worked, subject to a very limited number of exceptions:
To determine whether an employee is exempt
or non-exempt, you should look first to his or her job content and then determine whether the individual is paid on a salaried basis.
Docking an exempt
employee for less than a full week's absence for injury or witness duty or work shutdowns is also taboo.
Tangible personal property that is used by the donee in a manner unrelated to the donee's exempt
(or governmental) purpose; and