Improper exempt worker classification and non-compliance with regulations lead to a large amount of back pay awards and fines in the U.S. Incorrect employee classification and deductions can be ruinous to an employer, whether small or large, as penalties and back wages are computed with the same formula across the board.
Though it's not the payroll department's responsibility to decide on which employee to classify as exempt, it's critical that they understand the regulations regarding how this determination is made. Even more critical is that payroll understands and the strict rules for paying exempt employees. Payroll has the crucial task of ensuring that exempt employees are paid on a salary basis and that no exempt employee's wages are deducted improperly.
Remember the penalties for errors apply to both the classification of the worker and the actual payment of salaries when it comes to exempt employees. More importantly the penalties are applied to all workers in the same job classification under the same manager when a mistake is made on paying an exempt employee not just the one worker who was paid incorrectly.
In this session, our expert speaker, Vicki M. Lambert will discuss the four categories of exempt employees allowed under the IRS Code that includes professional, outside sales, executive and administrative. Vicki will also review the salary basis test and the salary level test. We will ascertain which deductions from an exempt employee's salary will breach the salary basis test and result in penalizing of the employer and what deductions can be properly made from an exempt employee.
Who should attend?
Payroll and human resources professionals who must determine who is exempt and handle the payment of wages for exempt employees.
Vicki M. Lambert CPP
Vicki M. Lambert, CPP is President and Academic Director of The Payroll Advisor™ a firm specializing in the training of payroll professionals. With over three decades of hands-on experience in all facets of payroll functions as well as over 20 years as a trainer and author, Ms. Lambert is a sought-after ... More info