commissions

Overtime and Bonuses

Outcome-based commissions and bonuses affect the overtime rate for nonexempt employees—not knowing this detail could get you audited.
Overtime and Bonuses

Performance-based commissions and bonuses are an effective way to incentivize employee performance. They can help your practice achieve new sales goals, boost efficiency and increase your team’s morale and engagement. But be aware: If your nonexempt employees—those being paid on an hourly vs. salary basis—reach the goals you’ve set, this extra pay must be factored into overtime pay. This is because outcome-based bonuses—those related to production, sales, or other measurable goal or incentives—are considered wages.