Highly Compensated Employee 2024. The overtime final rule also increases the new total annual compensation to meet the highly compensated employee exemption, with an increase from $107,432 to $132,964 as of july 1, 2024, and to $151,164 as of january 1, 2025. Officers making over $225,000 in 2024 (up from $215,000 for 2023) owners holding more than 5% of the stock or capital.
The threshold for determining who is a highly compensated employee under section 414(q)(1)(b) increases to $155,000 (from $150,000). Plus, individual tax filers with a.
A Highly Compensated Employee Is Deemed Exempt Under Section 13 (A) (1) If:
What is a highly compensated employee?
Employers Have Been Required Since August 20, 2023, When The U.s.
The minimum salary threshold for highly compensated workers will increase to $123,750 in 2024.
In addition, the rule will adjust the threshold for highly compensated employees.
Hces Are Typically Executives, Managers, Or Other Highly Skilled Or Specialized Employees Who Earn A Higher Income Than Other Employees Within Their Company.
An employee may qualify as a highly compensated executive employee, for example, if the employee customarily and regularly directs the work of two or more other employees, even though the employee does not meet all of the other requirements for the executive exemption under § 541.100.
