Forums / Off Topic / I.R.S. / Hourly Employee Question

5 years 15 weeks ago, 7:45 PM

cbxjeff

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My son is an hourly employee at a large U.S. company. They had a pay policy change and say it's required by the I.R.S. The situation is: If he is scheduled off on a holiday he must take pay as opposed to banking it into his vacation time. This was a change in policy from years past. Anyone know anything about this?

Thanks guys,

It's too late for me, save yourself.
5 years 15 weeks ago, 8:04 PM

LLE

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rather than a wage Hour law or "IRS' thing, as far as I know. It would be interesting to see that "large" company's Employee Handbook, for hourly employees, or to have an explanation of how the IRS makes policy that has to do with Wage/Hour law, which is administered by the US Department of Labor. I worked in Human Resources management for 38 years, and never had a case that involved the IRS in a company's operating policy re employee compensation for hoiday pay.

Too old to fight, Too old to run, guess that's why I carry a gun! "would someone show this asshole the way out of town".[Rabbi Avram Belinski-aka "The Frisco Kid"]
5 years 15 weeks ago, 8:09 PM

Schuyler

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than IRS stuff. Actually, I've never heard of being able to 'bank' a holiday into vacation time before. I was in HR for awhile, too, and this kind of stuff always boggled my mind with its complexity. I finally wound up in IT because it was easier.

"All that is necessary for the triumph of evil is for good men to do nothing." - Edmund Burke
5 years 15 weeks ago, 8:25 PM

daisycutter

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holidays were exactly that, have the day off, period no trading it for other types of days off. Work the holiday and get doubletime pay but no way to take that holiday at any other time except in the case of compensatory time normally given to management when they had to work a holiday. No holiday pay, tough shiite, you're in management.
Maybe something new has been added since I chose to no longer contribute my immense skills and superior knowlege to the GNP

iyaoyas
5 years 15 weeks ago, 11:16 PM

CharlesW

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holiday pay

I'm like yall, I never heard of switching hollidays
for vacation time. Either way hollidays and vacation
are a freebe.
They are not required

A little rebellion is good medicine for the government Thomas Jefferson
5 years 15 weeks ago, 12:30 AM

runawaygun762

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You people terrify me.

I see things like this and wonder how someone could live in an environment where the pay is so complicated. I can look at a past LES (Leave and Earning Statement, like a pay stub) and tell you to the penny how much I'll be getting in two weeks. How do you guys do it?

"I have always been a soldier. I have known no other life. The calling of arms, I have followed from boyhood. I have never sought another." From The Virtues of War, by Steven Pressfield.
5 years 15 weeks ago, 12:37 AM

zx12rmike

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runs, it's called watching to make sure your employer isn't pulling some BS to rip you off. I am constantly calling our payroll dept to find out why my check/hours are different than what I submitted. There are so many rules they have to go by, and our company uses "temps" to do payroll, By the way "temps" to do our payroll, WTF is up with that? sorry ranting

"We cannot defend freedom abroad by deserting it at home" Thomas Jefferson
5 years 15 weeks ago, 12:43 AM

runawaygun762

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Although I was thinking today of another career possibility. Pharmacist. Seems like an easy job, with good pay. I joined the army for NO OTHER REASON than to serve my country and kill my nation's enemies. Being born in Germany and seeing some of the people there in the early '80s, especially the homeless Turks, I realized at a very early age how good we have it here, and I knew it was my responsibility to give back to my nation for all the things I enjoy, so that's why I joined the army. But now, I figure after I've served my nation for 20 or 22 years, I will have paid my debt to this nation and whatever career I choose after the army is going to be all about the pay.

"I have always been a soldier. I have known no other life. The calling of arms, I have followed from boyhood. I have never sought another." From The Virtues of War, by Steven Pressfield.
5 years 15 weeks ago, 12:46 AM

zx12rmike

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Phony real job, and some overseas real work maybe?

"We cannot defend freedom abroad by deserting it at home" Thomas Jefferson
5 years 15 weeks ago, 12:49 AM

CharlesW

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runaway

get a trailer house out in the country and shoot
empty beer cans all day
you paid your dues, relax, drink beer, and shoot the shit out of things

A little rebellion is good medicine for the government Thomas Jefferson
5 years 15 weeks ago, 12:50 AM

runawaygun762

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DynCorp has civilian International Police Advisors n Iraq making 134k a year, with the first 84k tax free. I've already done that job as a soldier, so I'm really thinking about doing that for a year so I can pay off everything and then put a big part of the mortgage behind me.

"I have always been a soldier. I have known no other life. The calling of arms, I have followed from boyhood. I have never sought another." From The Virtues of War, by Steven Pressfield.
5 years 15 weeks ago, 1:02 AM

runawaygun762

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back in Ft Riley who are getting ready to go to Afghanistan and I'm not there with them and it kills me. I can honestly say that if the army was able to find a place for me until the day of my death, I would never leave. The very idea of having soldiers who I have trained and mentored, who are now going to deploy again into harm's way while I sit on my ass in Ft Huachuca, AZ makes me sick. I tried going back, but their battle roster was locked in and there's no openings for me. This desk sergeant, office bitch bullshit is killing me. I'll be getting looked at for E7 sometime this year or next and with the things I have on my ERB, I should have no problem getting it, so maybe I can find a place who'll need a platoon sergeant. That'll be a chance to influence and train almost 40 soldiers and make sure they don't die from lack of knowledge. Shit happens and people die in combat, it's just the nature of the beast. But I honestly don't know if I could live with myself if one of my soldiers die because he or she wasn't trained properly. I'm having a hard enough time dealing with the death of a soldier in 2003 that couldn't have been avoided by better training. I'd take myself out if I knew there was something more I could have done.

"I have always been a soldier. I have known no other life. The calling of arms, I have followed from boyhood. I have never sought another." From The Virtues of War, by Steven Pressfield.
5 years 15 weeks ago, 1:37 AM

luckybychoice

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cbxjeff

it has to do with hours,i'm assuming he would get 8 hours "banked" for the holiday instead of getting 16 hours banked, which they would have to pay him for at double time for a holiday,and some companies that did this also stipulated the Holiday "banked" hours had to be used in a certain timeframe,like the next payperiod or 3 months or those hours would be dropped,either scenario would be a violation and a reason for your sons company to switch to just paying for the hours,

so if he was only getting 8 hours for holiday banked or there was a timeframe to use the hours, the company would be in violation and that's why they just pay him now.

i tried being reasonable,i didn't like it, NRA LIFE MEMBER,USMC VETERAN
5 years 15 weeks ago, 6:58 AM

LLE

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WHAT?: FLSA, Service Contract Act, Davis Bacon, or the company's own policy??

Too old to fight, Too old to run, guess that's why I carry a gun! "would someone show this asshole the way out of town".[Rabbi Avram Belinski-aka "The Frisco Kid"]
5 years 15 weeks ago, 4:16 AM

luckybychoice

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and work your way up.There are some unknowns that need to be answered for a more detailed answer,like the size of the company,whether it falls under Sarbanes-Oxley but my first scenario that i generally responded to would be covered by the dept.of hours and wages,the second would be company policy with a red flag to the IRS if an employee was to protest,both issues would be resolved by an HR dept if they have one,again it could just be a policy change reflected by the auditors as a watershed of sarbanes oxley.

i tried being reasonable,i didn't like it, NRA LIFE MEMBER,USMC VETERAN
5 years 15 weeks ago, 1:24 PM

LLE

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There are the various Wage-Hour laws, one or more of which might apply, and there is settled law under each of them. cbxjeff also neglected to tell us if his son is working under a collective bargaining agreement, which could materially effect the picture.

Too old to fight, Too old to run, guess that's why I carry a gun! "would someone show this asshole the way out of town".[Rabbi Avram Belinski-aka "The Frisco Kid"]
5 years 15 weeks ago, 1:33 PM

cbxjeff

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IRS/Hourly Pay

Thanks for all the replies folks. Everything in life seems to becoming more difficult anymore. Either that or I'm getting dumber!

It's too late for me, save yourself.
5 years 15 weeks ago, 4:57 PM

Schuyler

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If you work a day and get overtime, say doubletime, you just earned it on that day. That's when the IRS wants to tax you on it. It's the same with a regular holiday when you don't work. You get 8 hours holiday pay and get the time off. You get taxed on that holiday pay.

Normally you 'earn' vacation at a certain rate, but they don't pay you the money until you actually take the day off. In my last job I earned two days a month, so a normal work day would earn me less than an hour of vacation time (0.738603578), about 45 minutes. That went 'into the bank' and cumulated until I used it. Then I'd take a few weeks off, still get a paycheck, and that's when I was taxed on it.

What is different about this scenario is that your son is paid overtime, which he has heretofore been able to 'bank' hour for hour until he wanted to take it. he didn't bank 45 minutes per day, but the worth of all those hours at once. That's the unusual part and the IRS, as always, makes the interpretation that is most advantageous to itself. Your son likely also earned a certain amount of vacation credit for working the same day.

"All that is necessary for the triumph of evil is for good men to do nothing." - Edmund Burke

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