Your Guide to the New Overtime Rules and Payroll

Your Guide to the New Overtime Rules and Payroll

-

English
2 Pages
Read
Download
Downloading requires you to have access to the YouScribe library
Learn all about the services we offer

Description

Your Guide to the New Overtime Rules and Payroll As you are probably already aware, the U.S. Department of Labor has changed the rules governing overtime pay to include larger numbers of salaried workers who will have to be compensated for putting in extra hours beginning December 1 (2016).

Subjects

Informations

Published by
Published 12 July 2016
Reads 0
Language English
Report a problem
Your Guide to the New Overtime Rules and Payroll As you are probably already aware, the U.S. Department of Labor has changed the rules governing overtime pay to include larger numbers of salaried workers who will have to be compensated for putting in extra hours beginning December 1 (2016). The rule increases the overtime threshold from $23,360 to $47,476 annually.
Businesses, trade groups, and nonprofits are already voicing opposition to the rule change despite not having any real recourse. It is the law of the land barring any change of heart by the Obama administration and the Labor Department. That means payroll services providers need to begin preparing alongside their clients right now. The two biggest concerns of the law are: the need for employers to begin tracking the hours of more employees; and
the fact that the overtime threshold is being nearly doubled instantly, rather than incrementally.
Regardless of how anyone feels about the rule changes, it is going to affect nearly every small and m id-sized company in America. Consumer prices will also be affected as retailers and wholesalers will have to raise prices to offset higher labor costs.
Tracking New Overtime Hours
The biggest beneficiaries of the rule changes in real terms are lower and middle managers who typically occupy that 'no man's land' between hourly workers and well-compensated upper management. These are the grocery store managers, restaurant managers, and entry-level team leaders who manage small groups of employees throughout the retail, hospitality, and industrial sectors. All of their working hours will have to be tracked by their employers and reported to payroll service providers to ensure workers are paid properly.
BenefitMall
What does this mean for payroll services companies? In the long-term, not much compared to how they operate now. The short-term is another matter. Payroll databases will have to be modified to accept new data tracking the hours of these workers so that they get paid. Taxes paid on behalf of such employees will also change, but most of that is automated anyway.
The biggest change forpayroll servicesis the fact that some salaried workers will be reclassified as hourly workers who are no longer eligible for all the same benefits they were getting before. Payroll companies will have to recalculate benefits accordingly. This could touch everything from health insurance to sick days to retirement fund contributions.
Keeping You On-Track and Compliant
We understand that complying with the overtime laws and regulations can be complex and frustrating, especially when Ŷeǁ laǁs are iŶtroduĐed. That’s ǁhy at BeŶefitMall ǁe Đreate solutioŶs that help keep you aŶd your eŵployees oŶ traĐk for hours and pay. Our time and attendance solution, TimeFocus, can help with all your scheduling needs, including sĐheduliŶg to aǀoid oǀertiŵe. That’s a ďig perk. UsiŶg aŶ autoŵated tiŵe aŶd atteŶdaŶĐe solutioŶ ĐaŶ help keep your company compliant and free from the costly non-compliance penalties. Remove the worry andstart today.
See howTimeFocuscan keep you compliant today. Source:
1.Alexandria Timeshttp://alextimes.com/2016/05/businesses-prepare-for-new-federal-employee-overtime-rules/
BenefitMall