Exempt (Salary) or Non-exempt (Hourly) — That’s the Big Question

Misclassifying employees or underpaying overtime can cause a business to suffer enormous consequences.

Job titles do not determine the exempt status of an employee. The specific job duties performed are the keys to proper classification.

The primary difference in status between exempt and non-exempt employees is their eligibility for overtime.

The Fair Labor Standards Act (FLSA) determines this status. Exempt employees are not entitled to overtime, while non-exempt employees are.

To qualify as exempt, certain criteria must be met. Employers should perform an assessment based on several factors, such as how much money the employees earn, the type of work being performed, and specific responsibilities and job duties. State laws can have different criteria that should be followed.

Federal law requires non-exempt employees be paid minimum wage plus overtime pay if they work more than 40 hours in a workweek. It must be paid at 1.5 times the regular rate. You should consult state labor laws where the employee is working for any additional requirements. Please visit dol.gov for more information.

Charity Golf Outing

PSS is sponsoring the Feasterville Business Associations 2021 golf outing in partnership with the Philadelphia Flyers Alumni Association, a 501 (c)(3) charity. The event will be held on Monday, July 12th at Spring Mill Country Club & Manor. To participate as a golfer or to donate to the charity, call Ed Shannon, Golf Committee Chairman at 215-378-1949. 100% of the net proceeds go to local charitable and communal endeavors.

Is Paperless Right For You?

U.S. businesses throw away enough scrap paper annually to fill nearly 20 Sears Towers from top to bottom.

Would you like the flexibility to access your payroll whenever and wherever you want? Are you tired of printing pay stubs for employees? Would it make life easier if employees could access their payroll records anytime, anywhere? We have options.

A simple phone call can get you all of this and so much more!

Does Your Bank Have Your Back?

Tioga Franklin provided over $47 million in PPP financing to small businesses. Because of our relationship with Tioga Franklin, hundreds of PSS clients were able to secure PPP loans regardless of whether they had an account with them.

Tioga Franklin has many Business Account perks as well as special benefits for your employees at no cost. For example, they offer cost-free online and virtual banking as well as remote deposit and many other features.

They also specialize in small-business loans, including SBA financing, construction lending, lines of credit, working capital, and much more.

Contact PSS for more information.

Do you have a topic you want us to include? Email customercare@payrollservicesolutions.com with your ideas.

IRS Processing Update

As of May 21, the IRS said it is now opening mail within normal time frames and has also “made significant progress in processing Forms 941” [IRS Newsroom, What You Can Expect, 5-21-21].

As of May 6, the agency had about 200,000 Forms 941, Employer’s Quarterly Federal Tax Return, received prior to 2021 to process and a total of 1.9 million unprocessed Forms 941 from the current and previous years waiting to be opened. As of May 7, the IRS had approximately 100,000 unprocessed Forms 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, which cannot be processed until the related Forms 941 are processed.

The IRS is taking actions to minimize delays, including rerouting tax returns and correspondence from locations that are behind to locations where more staff is available. Tax returns are opened in the order they are received.

Employers that filed electronically and received an acknowledgement do not need to take any further action other than responding to any requests for information.

The IRS has requested that employers do not file a second tax return or contact the IRS about the return’s status.

The PSS Referral Bonus Program – Get In on the Rewards

What could you do with a $50 Amazon gift card?! Let’s find out! And here’s how to earn one from us: Simply tell your friends and associates about PSS and the services we offer.

If they would like to learn more about all of our services have them contact Lisa Cerrone by emailing lisac@payrollservicesolutions.com or call 215-624-0922 and provide their contact information; she will then explain anything that is unclear and get them signed up, letting you know this has happened.

When your referral successfully becomes a new customer, our team will send you a $50 Amazon Gift Card or you can choose to apply a $50 credit to your account.

Let’s work together to make this happen!

Fun fact

The Payday candy bar was invented in 1932. At first, the inventors didn’t know what to call their new creation. It happened to be payday, so one of them suggested they call it a Payday bar—and the rest is history!