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There are three basic tests an employee must meet to qualify as an exempt employee. We’ve sifted through the information and wanted to share the Department of Labor’s three basic tests. If an employee meets these criteria, the employee is exempt. The employee is paid a fixed salary. The employee’s salary is at least $455/week […]

PaySmart provides you with the tools to find an employee’s local tax (EIT) rate. Go to PaySmart’s Helpful Tools. Then, scroll down and click on “Find Your Local Rate.” Enter Employee Address and Employer’s Address. The EIT rate is in the “Total Taxes to be Withheld” box.

To tax or not to tax, that is the question. The IRS is pretty clear when it comes to the taxability of car allowances: Taxable. If you provide a car allowance to an employee, the allowance is subject to federal income tax withholding and social security, Medicare, and federal unemployment taxes. It is also subject […]

Direct deposit simplifies your payroll process, saves time, increases security, and improves privacy. And once you’ve contacted PaySmart to move your payroll to direct deposit, setting up employees for direct deposit in PPX is easy. Let us show you exactly how easy it is. Log into PPX and: Select Checking or Savings. Enter Bank Routing # and Employee Acct. […]

  The FLSA allows you to take a tip credit toward your minimum wage obligation for tipped employees. That’s right. You can take a tip credit of $4.42 — the difference between the required cash wage ($2.83 in Pennsylvania) and the federal minimum wage (which is currently $7.25). Here’s another way of looking at it: […]

Need to pay an employee a bonus or another type of one-time pay?  It’s easy with HUB.   If you don’t have HUB, contact a Payroll Specialist to learn more about the benefits of the employee self-serve portal.

Know when your employees’ travel time must be compensated. When a non-exempt employee travels for work outside of the parameters of a regularly scheduled workday, it’s important to know how to compensate for that time. The Department of Labor provides these guidelines: Home-to-Work Travel: The employee’s normal commute to and from work is not considered […]

Overtime for tipped employees is based on the overtime rate for minimum wage. Sharpen those pencils! Calculating overtime (OT) for your tipped employees isn’t too complicated, once you have these two important facts under your belt. The OT differential for minimum wage is $3.63. The calculation: $7.25 (minimum wage) x .5 = $3.63. The tipped wage […]

Offering employees comp time instead of paying them overtime is not legal. Giving your employees time off instead of paying them overtime has been a fairly common and accepted practice for many companies. However, both state and federal regulations clearly state that comp time instead of overtime pay is not legal for private companies. (It is […]

You won’t believe how easy it is to set up an employee in PPX.