Recent figures show there are 11.2 million job openings in the US.
If you’re looking to hire, you should learn about the difference between non-exempt and exempt employees. If you don’t know how these two options differ, you might end up making mistakes when hiring.
This post will help you understand the non-exempt vs exempt employee concept. Once you’re done reading, you’ll understand how this concept impacts you as an employer.
Let’s begin!
What Is a Non-Exempt Employee?
To begin with, let’s cover what a non-exempt employee is.
In simple terms, a non-exempt employee is an individual that must be paid minimum wages that match federal and state laws. These kinds of employees must be paid overtime if they work over forty hours per week.
What Is an Exempt Employee?
An exempt employee is someone that earns a salary and not any sort of hourly wage.
Because of this, people that count as exempt employees do not receive overtime pay.
Not Sure Where You Stand?
Even though we’ve covered the difference between these two options, you might still have some questions.
If that’s the case, you might want to get in touch with your local authorities. If you do this, they will provide you with a non-exempt employee guide and an exempt employee guide.
Contacting your local authorities is also a good idea because they can tell you about certain plans that’ll help you save money.
For instance, one such plan they might tell you about is the “Employee Retention Tax Credit.” With this plan, you can earn a grant of around $26,000 per employee.
However, it’s worth noting that this grant is not really an option for every kind of business that operates in the US. Luckily, if you contact your local authorities, they’ll tell you whether you fit into this plan.
If they say that you’re eligible, you might then want to visit a website such as Erctoday.com. A website like this will help you claim the grant you are owed, thereby making it so that you can actually benefit from this plan.
Keep a Close Eye on the Rules
It’s worth noting that rules and regulations change all the time, and sometimes you can get caught out. For instance, the official definition of an exempt employee might change next year, due to a change in laws.
If you’re not aware of this change, you might mistakenly classify your employee as exempt, and this could then get you into trouble.
Following this, you should check in once a year to make sure the rules haven’t changed. This will then ensure you don’t break any laws when it comes to classifying your employees.
Do You Understand the Difference Between a Non-Exempt vs Exempt Employee?
Now that you’ve read this post, you should hopefully understand the difference between a non-exempt vs exempt employee.
If you need more advice on this topic, you should contact an accountant. They can help you figure out how you should approach this situation, and they can also help you stay up-to-date on the latest rules and regulations.
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