Page 8 - Payroll

Minimum Wage

& Overtime Pay

MINIMUM WAGE

Employers are required to pay employees an hourly rate equal to or
greater than the Federal or state minimum wage (whichever is
greater). The current Federal minimum wage is $7.25 per hour.
There are exceptions to this rule with regard to tipped employees,
employees with disabilities, and students. Make sure to review
these rules in detail with your CPA prior to implementing these to
ensure you are following the laws correctly.

OVERTIME

Overtime must be paid to all hourly employees working over 40
hours per week. Overtime must be paid at the rate of 1 1/2 times
the employee's normal hourly rate. Generally speaking, if
employees are paid for vacation or sick time, these hours do not
count toward "working hours" in the overtime calculation. For more
specific details, please visit the US Department of Labor website, or
your state's Department of Labor website.

EXEMPT SALARIED EMPLOYEES

Employees working in executive, administrative or professional
capacities can be paid a flat salary and are not subject to the
overtime rules. The salary thresholds in Pennsylvania are increasing
over the next several years as follows:

Current Federal & PA: $35,568
October 3, 2021: $40,560 (PA only)
October 3, 2022: $45,500 (PA only)

Page 6 Terri Johnson, CPA