If you pay any of your salaried employees on a salary or fee basis, the amount has to equal or exceed $455 per week.
To figure an hourly wage from an annual salary, you need to know the number of hours worked per year. Step 1. Add the number of weeks your employee works plus the number of weeks of paid vacation to find the total number of weeks worked. For example, if your employee works 50 weeks and you pay for two weeks of vacation, add 50 plus 2 to get 52 weeks. Step 2. Multiply the number of weeks per year by 40, the number of hours per week, to find the number of hours worked per year. In this example, multiply 40 by 52 to find the total hours for the year equals 2,080. Related Reading: How to Calculate the Hourly Rate of Pay for Time and a Half. Step 3. Divide the annual salary for the employee by the number of hours to find the hourly rate For non-exempt salaried employees, the employer must pay overtime if the employee works more than 40 hours. They may have to pay additional amounts if it is specified in the agreement that the salary is meant to be compensation for up to 45 hours. The employee's gross wages for the week, including overtime, would be $550 (the $500 salary plus $50 in overtime pay). Wisconsin law allows this method of overtime compensation for salaried, non-exempt employees, but federal law may not. You must not make hourly deductions from the earnings of a salaried employee. Hourly deductions may void the employee’s status as exempt. This might lead to penalties and overtime wage claims. You may take a deduction for a full day of work that a salaried employee misses due to a personal-or sick-related event. Minimum Salary Requirements. The minimum compensation for a salary basis employee is $455 per week. If you pay any of your salaried employees on a salary or fee basis, the amount has to equal or exceed $455 per week. The minimum weekly salary for your computer-related salaried employee is also $455 per week 2. Add hours to your calculation if you work overtime. For overtime pay, multiply the number of overtime hours you worked by the rate you receive for additional work, and then add this total to your yearly salary. 1 For example, if you get paid by the job or project, you may just want to keep track of the hours for that project to determine your hourly rate for that job. 2  Or you can determine your hourly rate for a shorter period of time, such as a month or a few weeks. Hourly Non-Exempt Status. Hourly employees receive a wage rate per hour and receive overtime compensation for working more than 40 hours in a work week. The amount of overtime pay due is 1 1/2 times the regular hourly rate. The term non-exempt means hourly employees are not exempt from the overtime rules set out by the FLSA.  Typically, a move from hourly to salaried work comes with a promotion and additional responsibility. As long as you're up for the extra work, there's no reason not to take the raise. But realize that if you work more than 40 hours in a week (which many salaried workers do), you won't get any extra money. In some cases, you may prefer to keep your hourly wage. For example, if you consistently rack up overtime, moving to a salaried position wouldn't provide you much benefit. And if the salaried position comes with additional responsibility that you aren't ready to have, then decline politely. Example: A non-exempt employee is paid a salary of $500 per week, and works 50 hours in a given week. Since the agreement is just that the employee will be paid a $500 salary, that sum would cover any number of hours worked. The regular rate for this week is the salary ($500) divided by the 50 hours worked, or $10.00. The employee's gross wages for the week, including overtime, would be $550 (the $500 salary plus $50 in overtime pay). Wisconsin law allows this method of overtime compensation for salaried, non-exempt employees, but federal law may not. To calculate the hourly wage for a salary employee: 2080 is the total available hours for a full-time (40 hours/week). If the employee does not work 40 hours/week, calculate the number of hours the employee works per week, and multiply by 52. i.e., # of hours/week x 52 = total available annually. 1  Salary amount x pay frequency = annual salary. Not all salaried employees are exempt.. Employees must meet the definitions in the law in order to be classified as exempt. For more information on these definitions see  Wisconsin Hours of Work and Overtime Law . The employee's gross wages for the week, including overtime, would be $550 (the $500 salary plus $50 in overtime pay). Wisconsin law allows this method of overtime compensation for salaried, non-exempt employees, but federal law may not.
http://smallbusiness.chron.com/calculate-hourly-rate-salaried-employee-based-40hour-work-week-11950.html http://dwd.wisconsin.gov/er/labor_standards_bureau/publication_erd_13109_p.htm http://smallbusiness.chron.com/rules-regulations-paying-salaried-employees-23954.html http://www.wikihow.com/Calculate-Your-Hourly-Rate http://work.chron.com/can-employers-switch-back-forth-salaries-hourly-5606.html http://money.usnews.com/money/blogs/outside-voices-careers/2012/05/24/how-to-move-from-hourly-employee-to-salaried-worker http://dwd.wisconsin.gov/er/labor_standards_bureau/publication_erd_13109_p.htm http://payroll.intuit.com/support/kb/1000600.html http://dwd.wisconsin.gov/er/labor_standards_bureau/publication_erd_13109_p.htm
how to specify salaried employee from hourly