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Understanding payroll math protects your business from compliance risk and helps you make smarter workforce decisions.
The Fair Labor Standards Act requires 1.5x pay for hours over 40 in a workweek for non-exempt employees. Some states have stricter requirements.
Studies by SHRM estimate replacing an employee costs 50–200% of their annual salary when you factor in recruiting, onboarding, and lost productivity.
Covered employers must provide 12 weeks of unpaid, job-protected leave. Employers with 50+ employees within 75 miles of the worksite are covered.
Most companies offer 10–15 days per year for new employees. Bi-weekly accrual is most common and helps employees track their balance accurately.