What's a salary employee?
A salaried employee is hired based on a prearranged compensation for work performed, usually as an annual amount. Salaried employees are exempt from overtime pay and minimum wage requirements and often have managerial or professional responsibilities.
To set up a salary pay type for an employee:
- Add a new salary employee
- On the employee's Pay page, click the How much do you pay Hourly? drop-down arrow and select Salary.
- In the $ field, enter the employee's salary rate and pay interval. For example, $45,000 Per Year.
- Click OK.
Next time you create a paycheck for the employee, the salary pay item (Regular Pay) appears and our payroll service calculates the salary rate for the pay period.