Employee Pay Types

When adding an employee, you will need to select the employee’s Pay Type.  Here’s an explanation of the three Pay Types:

Employee Pay Types

When adding an employee, select their pay type. Here are the three options in Patriot Software:

• Hourly:
  • Paid an hourly rate.
  • Eligible for overtime pay (1.5x regular rate) for hours exceeding 40 in a workweek, as mandated by the Fair Labor Standards Act (FLSA).
  • Classified as “non-exempt.”
  • Multiple job roles and pay rates can be configured.
• Salary:
  • Receives a fixed payment each pay period, regardless of hours worked.
  • May be “exempt” from FLSA overtime rules if specific criteria are met.
  • Exempt employees do not receive overtime pay.
  • Refer to the Department of Labor for FLSA exemption details.
• Salary Non-Exempt:
  • Receives a fixed payment each pay period.
  • Eligible for overtime pay (1.5x regular rate) for hours exceeding 40 in a workweek, despite receiving a salary.
  • Classified as “non-exempt” because they do not meet FLSA exemption criteria.
  • Generally paid the same salary regardless of hours worked under 40.

Also check out:  Exempt Employees Must Meet Specific Qualifications and
Salary Non-Exempt Employees: Calculating Gross Pay Amounts 

Was this article helpful? *

• Yes
• No

Comments:

Submit

Your feedback will not receive a reply. If you have a specific issue, please reach out to our support team here.