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Fall 1999 

Volume 3 Number 1

Overtime Rules Changing Again

Here is a checklist to help employers prepare for the change in overtime rules to “daily overtime.”

After January 1, 2000 overtime is earned after 8 hours, be ready for the change!

1. Update written policy: Modify your policies to indicate overtime is earned after 8 hours in a day or 40 hours in a week.

2. Adjust work schedules: Make changes to ensure that employees won’t incur unnecessary overtime.

3. Revise timecards: Update your system to identify & track overtime.

4. Implement a make-up time policy:  Allow employees to “make-up” time off by working in excess of 8 hours in a day exempt from overtime. There are specific rules to make this policy functional; feel free to call for details.

5. Update your meal period policy: Add a new rule allowing employees to waive a second meal period after 10 hours.

6. Train supervisors and payroll staff: Ensure they understand the new rules and your new policies. Managers should be aware that they can be personally liable for overtime violations.

7. Verify exempt salaries: The new law requires a minimum monthly salary of $1,993.33 for an employee to be exempt from the overtime rules. This minimum is two times minimum wage and will automatically change when minimum wage changes.

8. Obtain consents for voluntary alternative workweeks: If you have employees who wish to work a work week of other than five 8 hour days (i.e.: four 10 hour days) the employees must request in writing to continue the alternative schedule without the daily overtime rules applying.

9. Implement a formal alternative workweek schedule: If you wish your entire staff be on an alternative workweek schedule the employees must approve by means of a secret ballot in which two-thirds of the workers vote in favor.

Payroll isn’t simple! For assistance with your payroll processing call Matt or Marlene at 760-872-1122 or email us at payroll@sierracpa.com 

Checklist For Overtime Changes

Sample Make-Up Time Policy

1. Make-up time must be performed in the same workweek as the time off.

2. Including the make-up hours, an employee can work no more than 11 hours on a make-up day and 40 hours in the week.

3. The employee must request make-up time in writing. 

Planning Now Can Save $$$ in April

You have probably heard the old saying “Don’t put off ‘'til tomorrow what you can do today.” When it comes to paying taxes on your income, the opposite approach is often the best. In most cases you won’t want to give the IRS a share of your hard-earned cash until you absolutely have to. For this reason timing should play a central role in your tax planning.

Some things to consider now are;

1. Maximize your IRA/401(k) contributions.

2. Defer your year-end bonus until January.

3. Put investments in your children's name to keep the income off your return.

4. Watch income levels to keep Social Security benefits from becoming taxable

Now is the time to call Randy or Tony at 760-872-1122, or email at randy@sierracpa.com to make an appointment. Van Tassell & Paegel CPAs, helping you keep more of what you earn!