Correcting payroll error
We started our business with one employee. He was hired with a flat salary of $45/hr, no overtime, but received all time off with pay. He is a field service technician, and I don’t think that qualifies for exempt status. He has been working for two years. How do I correct this?
You are right to correct this asap. You have been generous in your hourly rate. Your technician most likely would be considered non-exempt, meaning he would have to be paid overtime. Here is an article that may help. Also some states vary on what they consider overtime, so check your state regs also. If you only have this one employee, let me recommend great payroll software that will grow with you.
Gusto costs only $39 a month and does it all for the low cost of $6/month per employee. You can try them free for one month. https://app.fitsmallbusiness.com/goto/gusto/
You may owe your employee back pay for any unpaid overtime — you’ll want to get this paid before you end up with a payroll audit (and fines which double what you owe).
Best of luck to you!
Laura, HR Writer