A salaried employee earns a specific sum of money for each payroll period. The office clerk at Kent Furniture and Novelty Company earns a weekly salary.

HOURS WORKED

Salaried workers who do not hold supervisory jobs are covered by the provisions of the Wage and Hour Law that deal with maximum hours and overtime premium pay. Employers keep time records for all nonsupervisory salaried workers to make sure that their hourly earnings meet the legal requirements.

Salaried employees who hold supervisory or managerial positions are called exempt employeesSalaried employees who hold supervisory or managerial positions who are not subject to the maximum hour and overtime pay provisions of the Wage and Hour Law. They are not subject to the maximum hour and overtime premium pay provisions of the Wage and Hour Law.

GROSS EARNINGS

Cynthia Booker is the office clerk at Kent Furniture and Novelty Company. During the first week of January, she worked 40 hours, her regular schedule. There are no overtime earnings because she did not work more than 40 hours during the week. Her salary of $480 is her gross pay for the week.

WITHHOLDINGS FOR SALARIED EMPLOYEES REQUIRED BY LAW

The procedures for withholding taxes for salaried employees is the same as withholding for hourly rate employees. Apply the tax rate to the earnings, or use withholding tables.