Exempt Employees

With the Department of Labor's upcoming rule changes, church employers must prepare for the new salary threshold for exempt employees, rising to $58,656 on January 1, 2025.   However, clergy staff—those considered ministers for tax purposes—are exempt from overtime requirements, regardless of how much or...

Question:  We have an exempt employee who is going to be working part-time hours indefinitely. Do we need to switch them to hourly nonexempt or can we simply reduce their salary while keeping them exempt? Answer:  You don’t necessarily need to change their classification, but the minimum...

Question: Do managers need to be classified as exempt? Answer: No, it’s fine to classify managers as nonexempt. You are under no obligation to classify any employee as exempt, even if they meet the criteria under the Fair Labor Standards Act. You could have an entire...

Question:  We have an employee claiming they shouldn't be classified as exempt from overtime. If it turns out they're right, what are the penalties for misclassification? Answer:  The cost of misclassification can be steep and will depend on several factors, such as how many employees are misclassified,...

Question: "Can we require exempt, salaried employees to turn in time sheets?" Answer: YES! There are some benefits or reasons why you would want to track your salaried employee’s time like: Evaluating the load of essential duties. Do they regularly work 60 hours? Are they working excessively or...

WASHINGTON — As more tax professionals consider teleworking during COVID-19, the Internal Revenue Service and the Security Summit partners urged practitioners to secure remote locations by using a virtual private network (VPN) to protect against cyber intruders.  A VPN provides a secure, encrypted tunnel to transmit...