Why would you want to be exempt?
Key takeaway: The advantages of hiring exempt employees include no overtime pay and more knowledge and responsibility. Downsides include higher pay rates and no ability to deduct pay for hours not worked.
How do you explain exempt and non exempt employees?
The primary difference in status between exempt and non-exempt employees is their eligibility for overtime. Under federal law, that status is determined by the Fair Labor Standards Act (FLSA). Exempt employees are not entitled to overtime, while non-exempt employees are.
What does exempt level position mean?
Exempt positions are excluded from minimum wage, overtime regulations, and other rights and protections afforded nonexempt workers. Employers must pay a salary rather than an hourly wage for a position for it to be exempt.
What does it mean if something is exempt?
1 : free or released from some liability or requirement to which others are subject was exempt from jury duty the estate was exempt from taxes. 2 obsolete : set apart. exempt. verb. exempted; exempting; exempts.
What does exempt mean for a job?
The term “exempt employee” refers to a category of employees set out in the Fair Labor Standards Act (FLSA). Exempt employees do not receive overtime pay, nor do they qualify for minimum wage. When an employee is exempt, it primarily means that they are exempt from receiving overtime pay.
How do you explain exempt status to an employee?
An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.
What is the meaning of being exempt?
What does exempt mean in taxes?
When you file as exempt from withholding with your employer for federal tax withholding, you don’t make any federal income tax payments during the year. You owed no federal income tax in the prior tax year, and. You expect to owe no federal income tax in the current tax year.