Forums
Hiring former exempt employee at hourly rate
Benefits & Compensation
Hiring former exempt employee at hourly rate
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
We are in Washington state and have an exempt employee that will soon be leaving the company. If we rehire him after his termination date to train his replacement, can we pay him hourly without jeopar
0
Cat:Topic ForumsForum:ForumId52
Cat:Topic ForumsForum:ForumId52Discussion:DiscussionId36656
Forums » Topic Forums » Benefits & Compensation » Hiring former exempt employee at hourly rate
|
Hiring former exempt employee at hourly rate
posted at 7/28/2010 11:22 AM EDT
|
Posts: 1
First: 7/28/2010 Last: 7/28/2010 |
We are in Washington state and have an exempt employee that will soon be leaving the company. If we rehire him after his termination date to train his replacement, can we pay him hourly without jeopardizing the exempt status of that position? The wages may exceed $455 per week. |
|
|
Hiring former exempt employee at hourly rate
posted at 7/30/2010 5:46 AM EDT
|
|
Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
If you hire him back as a contractor you will still likely be paying hourly so not sure that helps. If the person is not going to work more than 40 hours a week when you bring him back then exempt status is probably not a real issue.
What can be a real issue is bringing back a former employee as a contractor and avoiding their participation in benefit plans, SS match, worker's comp etc. IRS does not like this solution. |
|
|
Hiring former exempt employee at hourly rate
posted at 7/30/2010 8:05 AM EDT
|
|
Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
The IRS would certainly not look favorably upon it if the part time employment lasted for any significant period of time. A month or so probably won't matter much.
However, good point about the benefits. |
Forums » Topic Forums » Benefits & Compensation » Hiring former exempt employee at hourly rate
