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How does annual salary vs hourly work?
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amother




OP
 

Post Thu, Oct 14 2021, 3:37 pm
I would like to request to move from hourly to annual salary.

I am not clear what are the pros and cons?
How does salary work in terms of keeping to hours on a weekly basis? How does it work with pto?
What else is there to know?
What do I need to bring up with my boss to make sure everything is detailed, clear and no misunderstanding?
Anything else you can tell me? I'd appreciate it!
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amother




Cappuccino
 

Post Thu, Oct 14 2021, 3:55 pm
If you were hourly you usually get OT

If you were salary you don’t, you’re expected to just get the job done
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amother




OP
 

Post Thu, Oct 14 2021, 4:01 pm
Ok. That helps. So What are the benefits to salary? What are the benefits to salary?
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Cookiegirl




 
 
 
 

Post Thu, Oct 14 2021, 4:10 pm
If you are not doing a different job, you may not be able to transition to a salaried role. There are certain jobs that are considered "exempt" (salaried) vs. "non-exempt" (hourly-eligible for Overtime) and it has to do with your level of independence/control in your job responsibilities. This is governed by the Federal Fair Labor Standards Act (assuming you are in the US) and it is in force to protect employees who are eligible to get paid overtime from their employers changing them to salary and thereby remove their ability to collect overtime pay. If you never work more than 40 hours per week, this may be a moot point, but depending on how likely your employer will be audited by the Labor Dept, salary may not be an option. If you get promoted, and get more independence and responsibilities, then salary may be on the table
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amother




Bone
 

Post Thu, Oct 14 2021, 4:11 pm
Why do you want to be salaried?
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Cookiegirl




 
 
 
 

Post Thu, Oct 14 2021, 4:13 pm
As far as the "benefits" of salary - mostly it's about not having to clock in- but you need to do your job, no matter how many hours it takes. No one will police you to clock in or out if you need to take a personal call or attend an appointment, and you will get paid the same amount weekly/bi-weekly even if you put in a bit more or a bit fewer hours.
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thunderstorm




 
 
 
 

Post Thu, Oct 14 2021, 4:14 pm
Benefit of salary is that you know the exact amount you will be paid every pay check. It doesn’t change. Because hourly employees have their hours vary from time to time their paychecks are always slightly different.
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amother




Blushpink
 

Post Thu, Oct 14 2021, 4:17 pm
thunderstorm wrote:
Benefit of salary is that you know the exact amount you will be paid every pay check. It doesn’t change. Because hourly employees have their hours vary from time to time their paychecks are always slightly different.

And you usually gets insurance or other benefits and paid holidays
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amother




Cappuccino
 

Post Thu, Oct 14 2021, 4:19 pm
thunderstorm wrote:
Benefit of salary is that you know the exact amount you will be paid every pay check. It doesn’t change. Because hourly employees have their hours vary from time to time their paychecks are always slightly different.


Not always true. I’m hourly but 40 hours a week
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thunderstorm




 
 
 
 

Post Thu, Oct 14 2021, 4:19 pm
amother [ Blushpink ] wrote:
And you usually gets insurance or other benefits and paid holidays
many employees get that if they are hourly. I do.
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amother




Mistyrose
 

Post Thu, Oct 14 2021, 4:27 pm
amother [ Blushpink ] wrote:
And you usually gets insurance or other benefits and paid holidays

Hourly employees get that as well as long as they are hired for a certain number of hour and are part time or full time as opposed to per diem.

They clock in and cannot be early or late and have a much more ridged schedule, but they do get overtime and time and a half for certain situation, which salaried employee do not.

Like with everything in life, there are pros and cons.
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Amarante




 
 
 
 

Post Thu, Oct 14 2021, 4:36 pm
As posted, salary versus hourly really is a legal distinction that has to do with how overtime and other worker protections operate.

To be "legally" a 'exempt" salaried employee, you must earn a minimum of approximately $36,000 per year and $700 per week. You also must generally be in some kind of managerial or professional job. For example, an office manager would generally have duties that would make them exempt but a secretary wouldn't. Most professionals such as lawyers, accountants are considered to be exempt even if they don't "manage" anyone.

Lots of people have jobs for which they receive a weekly or annual salary but really are hourly employees. For example, the secretaries where I work have an annual salary but that is broken into an hourly salary if they are working overtime.

Some exempt employees have flexible hours because of the nature of the job since they don't receive overtime and are expected to finish whatever assignments they have without stopping at 5 PM. However, they don't necessarily have flexible hours as that really depends on who they report to and what the company policy is.

Hourly workers (or non-exempt workers) generally receive vacation, PTO, sick leave and other applicable benefits. They are actually calculated on an hourly basis technically but for practical purposes they are just stated to be x days per year.

Some hourly employees are consultants and aren't employees but that is different than just being an hourly employee of a company

There really is no benefit to being salaried versus hourly and in fact it is to the benefit of an employer to attempt to classify a person as salaried/exempt because they can save on overtime.
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amother




OP
 

Post Thu, Oct 14 2021, 6:14 pm
Thanks for all the replies. To clarify, I'm a part time. So over time doesn't apply to me. Everyone keeps telling me that you must be on salary to make the most out of it. I'm trying to understand why
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Amarante




 
 
 
 

Post Thu, Oct 14 2021, 6:30 pm
amother [ OP ] wrote:
Thanks for all the replies. To clarify, I'm a part time. So over time doesn't apply to me. Everyone keeps telling me that you must be on salary to make the most out of it. I'm trying to understand why


I don’t understand how that would work practically since as a part time worker you agree to work for x hours. If they asked you to work outside of those hours, you would need to be compensated.

The only part time workers I am familiar with an hourly rate are those who are independent contractors and they bill the client for hours worked.

However there are also technical legalities involved in being a true independent contractor as some employers classify people as independent contractors instead of employees to save money and it doesn’t benefit the worker. Not only do they not get benefits or some form of job security, but they also are responsible for paying the employer’s share of FICA. There have been some lawsuits because of the way some employers have illegally classified what should be employees.
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amother




RosePink
 

Post Thu, Oct 14 2021, 6:33 pm
The reason why is because then you don’t lose when you’re an hour late.

So your employer might not agree to this. It depends on the company/employer. At one place, I was hourly (with benefits). At another I’m salary (no benefits) because as long as the job gets done, it gets done- they don’t need me to sit there and twiddle my thumbs and wait for the phone to ring.
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amother




Beige
 

Post Thu, Oct 14 2021, 6:41 pm
amother [ OP ] wrote:
Thanks for all the replies. To clarify, I'm a part time. So over time doesn't apply to me. Everyone keeps telling me that you must be on salary to make the most out of it. I'm trying to understand why


The reason I asked to switch to salary is because I had to cut down my hours but couldn't afford to cut down my paycheck. I kept the same workload and logged in from home when necessary so my boss was okay with it. Eventually they hired more girls that took over some of my work and by now I make a nice salary for not that many hours. I believe that is why ppl are telling you that...
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thunderstorm




 
 
 
 

Post Thu, Oct 14 2021, 6:45 pm
I’ve noticed that people on salary have a certain advantage where they could arrive a bit late or leave a bit early and it won’t affect their paycheck. With an hourly employee , every minute counts. If you are 10 minutes late you have 10 minutes less that you will get paid. It doesn’t affect a salaried employee. (As long as the employer doesn’t mind your lateness or leaving early).
On the other hand, if you are taking home extra work to staying late to meet deadlines, an hourly employee gets paid for that extra time being put in. A salaried employee doesn’t.
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amother




Impatiens
 

Post Thu, Oct 14 2021, 8:05 pm
I just switched to being an exempt, salaried employee and I love it! I don’t have to stress about clocking in or out at the right time or calculating my lunch breaks, I have a steady salary I can rely on, and my salary increased because I never actually managed to work 40 hours a week, so I was never getting paid as much as I am now.
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amother




OP
 

Post Fri, Oct 15 2021, 11:22 am
amother [ Impatiens ] wrote:
I just switched to being an exempt, salaried employee and I love it! I don’t have to stress about clocking in or out at the right time or calculating my lunch breaks, I have a steady salary I can rely on, and my salary increased because I never actually managed to work 40 hours a week, so I was never getting paid as much as I am now.


What does it mean to be an exempt, salaried employee?
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potato kugal




 
 
 
 

Post Fri, Oct 15 2021, 12:16 pm
Don't go by these terms unless you work full time and have overtime. It doesn't make a difference otherwise.
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