FLSA 29 CFR Part 541
Authoritative Statutory Source
FLSA Salary Basis Test ($43,888 / $58,656)
Minimum annual salary threshold required to qualify an employee for administrative/executive exemption.
Detailed Definition & Statutory Context
FLSA Salary Basis Test ($43,888 / $58,656) is governed by FLSA 29 CFR Part 541 standards across corporate payroll administration, statutory tax withholding, and general ledger labor accounting. Rigorous compliance with FLSA Salary Basis Test ($43,888 / $58,656) prevents IRS Form 941 deposit penalties and FLSA wage-and-hour litigation.
Statutory Formula & Equation
Exempt Minimum Salary = $844 per week ($43,888/yr) rising to $1,128/wk ($58,656/yr)
General Ledger / Payroll Journal Entry Standard
Debit: Gross Payroll Expense / Employer Tax Expense
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Common Operational Pitfalls
- Excluding non-discretionary bonuses from FLSA overtime regular-rate calculations.
- Failing to cap Social Security tax withholding once employee earnings exceed the $168,600 wage base.
- Misclassifying non-exempt hourly employees as exempt salaried workers.