I have a part time employee that works 20 hours a week for a total of 80 hours a month. I pay her $1600 per month. But on my payroll stub I put salary of monthly salary of $1600 but no hours is on the paystub , should i put hours on the paystub or is it ok to leave it as a monthly flat salary of $1600.
Part time Employee
Jun 26, 2013
7 Replies
80 hours a month. I pay her $1600 per month. But on my payroll stub I put salary of monthly salary of $1600 but no hours is on the paystub , should i put hours on the paystub or is it ok to leave it as a monthly flat salary of $1600.
I can't see any impact on payroll taxes or income taxes whether you do it one way or another. However, the labor laws of your state may very well have something to say about this, as they would be interested in things like overtime pay, minimum wage, etc. Also, should your employee ever depart on bad terms, you might be opening yourself for who knows what kind of lawsuit over unpaid wages or whatever...
It seems there is very little downside, and lots of benefits, to have the paystubs reflect the reality that you have an hourly employee, not a salaried employee. Doesn't she fill out a time sheet?
Whichever way you go, you really should have a written employment agreement that clearly states how the wage or salary is calculated, and then follow it.
Minimum wage is $7.25. This number times 40*4 = $1160. If double the number of hours then $2320 plus overtime, which would probably make it
2.5 * 1160 = $2900.The tip minimum wage is $2.13 per hour, but if in a day the employee does not make enough in tips, then you have to pay the minimum wage for that pay period (or day, not sure which).
a month. I pay her $1600 per month. But on my payroll stub I put salary of monthly salary of $1600 but no hours is on the paystub , should i put hours on the paystub or is it ok to leave it as a monthly flat salary of $1600.
Maybe you were just rounding for simplicity but if your employee is working 20 hours per week, then in an average month she works almost 87 hours.
a month. I pay her $1600 per month. But on my payroll stub I put salary of monthly salary of $1600 but no hours is on the paystub , should i put hours on the paystub or is it ok to leave it as a monthly flat salary of $1600.
pay stubs. I know most do, but is it really a requirement in your state?
ChEAr$, Harlan Lunsford, EA in AL
NJ (P.L. 1965, ch. 173) requires that all employers must furnish employees with a statement of deductions each pay period. Employers who knowingly and willfully violate the Act face a fine for noncompliance of $100 to $1000 per violation. Each day of noncompliance is a separate violation.
Ira Smilovitz
hours a month. I pay her $1600 per month. But on my payroll stub I put salary of monthly salary of $1600 but no hours is on the paystub , should i put hours on the paystub or is it ok to leave it as a monthly flat salary of $1600.
provide pay stubs. I know most do, but is it really a requirement in your state?
I don't have a cite, but my EDD contacts tell me the same is true in California, statement of deductions (= paystub) is mandatory.
Pennsylvania Code 34 231.36: "Every employer shall furnish to each employee a statement with every payment of wages, listing hours worked, rates paid, gross wages, allowances, if any, claimed as part of the minimum wage, deductions and net wages."
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