Salaried Personnel and Holiday Pay

[Becky Noble]

Good Day,

I have a salaried employee that earned 72 hours regular pay (which I calculated) and 8 hours holiday pay (which PayWindow calculated). For some reason he was taxed as if I paid him 88 hours but the gross pay was correct on his stub and all payroll reports. I have been processing payroll this way for salaried people since the beginning of the year and have not seen this. Am I doing something incorrectly?

Thank you,
Becky

[Paul Mayer]

A Salaried employee does not get paid by the hour, it is a sum that is entered in the pay rate for Salaried employees. You can enter hours in for a salaried employee to track but it has no bearing on the calculated wage.

And example is our sample company Salaried employee. His Pay Rate is $1000.00 a week and if you look below in the Details 1 Tab the hours are zero unless you want to track and in that case you would enter the hours to store. When I entered 8 hours for Holiday pay, it calculated the Holiday pay by the Salary this employee gets per a 40 hour week using the number of hours I entered. Then clicking the Pay button calculated the taxes on the total of the salary and the holiday pay.

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[Becky Noble]

Thank you, Paul. The problem is that I have to enter hours for all employees because we are in Oregon and have what is called a worker's benefit fund deduction based on regular hours worked. Our worker's compensation is also based on a certain combination of hours. What I have been doing is entering the hours and then manually deducting the vacation or holiday amount from the regular pay to come to a correct gross. Is there another way?

[Paul Mayer]

That sounds like a real convoluted way to do things.

Like I said earlier, for a "Salaried" employee which gets the same salary if they work a full period or more, or a partial period, the entry of hours does NOT affect the gross pay. So if you do like I did in my last message in the example, it should be correct and proper for Salaried employees.

But if you are actually paying them for the actual hours worked, they are NOT Salaried employees and should be set up as Hourly employees.

[lehua768]

For some reason he was taxed as if I paid him 88 hours but the gross pay was correct on his stub and all payroll reports. I have been processing payroll this way for salaried people since the beginning of the year and have not seen this. Am I doing something incorrectly?The problem is that I have to enter hours for all employees because we are in Oregon and have what is called a worker's benefit fund deduction based on regular hours worked. Our worker's compensation is also based on a certain combination of hours. What I have been doing is entering the hours and then manually deducting the vacation or holiday amount from the regular pay to come to a correct gross. Is there another way? I said earlier, for a "Salaried" employee which gets the same salary if they work a full period or more, or a partial period, the entry of hours does NOT affect the gross pay. So if you do like I did in my last message in the example, it should be correct and proper for Salaried employees.

[Paul Mayer]

This does not compute in my mind. If you are paying "Vacation" or "Holiday" pay, it should be over and above the "Salary" and not deducted from the salary. That is what you are doing and that is not legal from what I know. If Vacation and Holidays is included in the Salary, then you should NOT reflect it in PayWindow.