Paying your employees final paycheck is more confusing than it seems. Although Federal law has broad regulations you have to comply with, States have the most rules, and they differ widely. Failure to accurately and completely pay what your worker is due can be tricky. Further, you may have to pay them the minute you terminate them.
Although the rules on exempt vs non-exempt employees has changed a few times in the past 10 years, overtime worked is, and has always been, overtime earned. THERE ARE NO EXCEPTIONS.
Specifically, IRS auditors are focusing on executive compensation. Stock options, golden parachutes, insurance and other perks are designed to keep your high priced executive talent in place.
In 2020, the IRS significantly revised the W4 form. Instead of employees simply completing the information about marital status and a number of exemptions
From an employer's perspective, the rules can get complicated. Not withholding what we should has major consequences - as does deducting what we can't.