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Accounting, Payroll & Pension Issues/Requiring Exempt Level Employees to fill in with vacation time

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Expert: - 3/31/2009


Question
Hello,
Am I required to pay an exempt level employee working in PA vacation and personal time in 8 or 4 hour blocks only?  For example, if an exempt level employee works 6.5 hours in one day, can I fill in the remaining 1.5 hours with vacation time?
Thanks for your help!

Answer
Exempt employees must be paid for the whole day if they work part of the day.

Since they are not hourly employees than you should only figure their time in days and 1/2 days.

While it doesn't matter which pot you pay them from if you start doing hours and portions of hours it can very well look as if you are treating the employee as an hourly employee and the exemption could be lost.

It is unfair to deduct for hours but not to pay overtime when extra hours are worked. This is why the whole day must be paid if only a part of a day is worked. It is a concession against the lost overtime for the salaried employee.

We only deduct 1/2 days and 1 whole days for salaried exempt.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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