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Salary Non-Exempt Employees: Calculating Gross Pay in Patriot Software

Here’s a streamlined explanation of salary non-exempt employee pay:

Salary Non-Exempt Pay

You’re right, let’s break down the hourly rate calculation more clearly within the examples:

Salary Non-Exempt Pay with Detailed Hourly Rate Explanation

Salary non-exempt employees receive a fixed salary but are subject to FLSA minimum wage, overtime, and timekeeping rules.

  • Salary Entry: Enter the employee’s fixed salary in the pay rate field.
  • Hourly Rate Calculation: Patriot Software calculates a regular hourly rate for overtime purposes: Annual salary / 2,080 hours. This 2,080 number represents the number of hours worked in a standard 40 hour work week for 52 weeks of the year.
  • Overtime: Overtime (1.5x hourly rate) is paid for hours exceeding 40 in a workweek.
  • Consistent Salary: The employee receives their full salary even if they work less than 40 hours.

Salary Non-exempt pay rate example:

  • Joe’s biweekly salary: $2,000.
  • Calculating Annual Salary: Because Joe is paid biweekly, we must first calculate his annual salary. $2,000 biweekly salary multiplied by 26 biweekly pay periods equals $52,000 annual salary.
  • Calculating Hourly Rate: Now we divide the annual salary by 2,080 hours. $52,000 / 2,080 hours = $25.00 hourly rate.

Here are some scenarios for Joe’s non-exempt biweekly salary:

  • 80 hours worked: $25.00 x 80 regular hours = $2,000 gross pay.
  • 75 hours worked: $25.00 x 80 regular hours (even though he only worked 75 hours) = $2,000 gross pay.
  • 82 hours worked:
    • Regular hours: $25.00 x 80 regular hours = $2,000
    • Overtime rate: $25.00 x 1.5 = $37.50
    • Overtime pay: $37.50 x 2 overtime hours = $75.00
    • Total gross pay: $2,000 + $75.00 = $2,075.00

In Patriot:

  • Reduced Pay: To reduce a salary for partial work, manually adjust the pay rate before processing payroll. You can adjust this on the employee record. See our help article, “Editing Employee Pay Information,” for detailed steps.
  • Hourly Rate Display: The displayed hourly rate is rounded to two decimals, but the actual calculation uses the unrounded rate.

Check out our blog article, “Non-Exempt Employees and the Fair Labor Standards Act”
[DEFINITION: Non-Exempt Employee]

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