Square Payroll Update - Salaried Employees

Kelly — Thu, 27 Jul 2017 11:11:14 GMT

Our Payroll team is working hard! After our most recent announcement of custom reports, I am very excited to bring you our newest payroll feature, Salaried Employees. We recently added the ability to customize the pay type and exempt status for your employees. If you pay salaried employees, their hourly rate and hours worked will be automatically populated each time you go to run payroll. If your salaried employees are non-exempt, you can import timecards from Square Payroll to ensure you pay the appropriate overtime and doubletime. Let's get started setting up your employee's.

To add a salaried employee, go to the Employees section of your Payroll Dashboard:

Click New Employee and select Pay Type Salary.

Enter your employee’s Annual Salary and Weekly Hours. These numbers will be used to determine your employee’s Hourly Rate. Note: that the hourly rate is rounded up to the nearest cent, so your employee may be paid slightly more than their annual salary by the end of the year. Weekly Hours is the standard number of hours worked each week that was agreed upon by you and your employee. Most full time employees have a standard workweek of 40 hours.

If your employee is exempt, check the Overtime Pay exempt checkbox.

When you go to run payroll, the hourly rate and regular hours will be automatically filled out for your salaried employees.

If your salaried employee’s standard weekly hours exceed 40, the overtime column will be populated with the hours that exceed 40. For example, an employee with a 45 hour workweek will be paid 40 Regular hours and 5 Overtime hours.

When you import timecards, hours will be populated depending on your employee’s employment type as follows:

Hourly non-exempt: Regular hours, Overtime and Doubletime will be calculated per your overtime settings.
Hourly exempt: All timecards will be imported as Regular Hours
Salaried exempt: No hours will be imported.
Salaried non-exempt: Regular hours, Overtime and Doubletime will be imported if they exceed your employee’s standard workweek. For example, if your employee’s standard workweek is 20 hours and your employee worked 30 hours plus 5 overtime hours in a week, importing timecards will result in 30 hours in the Regular hours column and 5 hours in the Overtime column.

Note: The regulations for calculating and paying overtime vary by state and industry. Contact your state labor department to determine the requirements for your business.

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See you next time!
Kelly and The Square Payroll Team

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Square Payroll Update - Salaried Employees