When adding an employee, you will need to select the employee’s Pay Type. Here’s an explanation of the three Pay Types:
Employee Pay Types
When adding an employee, select their pay type. Here are the three options in Patriot Software:
Hourly:
Paid an hourly rate.
Eligible for overtime pay (1.5x regular rate) for hours exceeding 40 in a workweek, as mandated by the Fair Labor Standards Act (FLSA).
Classified as “non-exempt.”
Multiple job roles and pay rates can be configured.
Salary:
Receives a fixed payment each pay period, regardless of hours worked.
May be “exempt” from FLSA overtime rules if specific criteria are met.
Exempt employees do not receive overtime pay.
Refer to the Department of Labor for FLSA exemption details.
Salary Non-Exempt:
Receives a fixed payment each pay period.
Eligible for overtime pay (1.5x regular rate) for hours exceeding 40 in a workweek, despite receiving a salary.
Classified as “non-exempt” because they do not meet FLSA exemption criteria.
Generally paid the same salary regardless of hours worked under 40.
Also check out, “Exempt Employees Must Meet Specific Qualifications.”