Quick Help Needed - Exempt doing a part time hourly job

Leslie

[font size="1" color="#FF0000"]LAST EDITED ON 10-06-03 AT 12:43PM (CST)[/font][p]Question moved to Employment law...thanks!

Petard

Presumably, the blackjack dealing is considered to be nonexempt work. I'm firing from the hip here, Leslie, but it seems to me that as long as his nonexempt duties don't constitute more than 20% of his hours during this work week, you don't lose the exemption. I don't think you'd need to pay him any extra, whether he volunteers or whether he's assigned to do that. Allowing him to keep tips seems reasonable. Nevertheless, I'm not going to look under that rock concerning taxation/withholding of tips. You're on your own there!

marc

I responded earlier, but somehow the post did not make it to the forum. I must have clicked to fast. The exempt ee should not get paid anything for doing more work, even if it is not their regular job. pay them OT and you put their exempt status at risk, which you do not want to do.

Petard is correct about the tips and associated taxes. If you do it by the book, you will add these amounts in as non-cash taxable wages and allow your software to withhold taxes. Perhaps you can have him declare the amount. If this is an unusual, never recurring event - then follow your own conscience as to the liklihood of getting your hand slapped if you happen to miss the tax consequences of pmts received from 3rd parties. By the way, the ee is supposed to report this stuff anyway.

Leslie

All tips are taken into our vault and placed into the employee's paycheck, so we're okay there. Thanks!