Tie-out tool / Salaried nonexempt

Code TT for salaried nonexempt employees

A salaried employee who is not exempt from overtime still gets qualified overtime. The regular rate is the weekly salary divided by the hours the salary is meant to cover, and Code TT is half that rate for each hour worked over 40.

Nonexempt means the FLSA overtime rules apply to the employee. Being paid a salary does not, by itself, make someone exempt.

The federal examples

Salary	Hours it covers	Regular rate	Code TT per hour over 40
$350 a week	35	$10.00	$5.00
$375 a week	40	$9.38	$4.69
$1,560 a month ($360 a week)	40	$9.00	$4.50

Regular rates are from 29 CFR 778.113. A monthly salary is converted to a weekly one by multiplying by 12 and dividing by 52; a semi-monthly salary by multiplying by 24 and dividing by 52. The last column is half the regular rate, per IRS FS-2026-13, Q12.

Fluctuating workweek

If a fixed salary covers whatever hours are worked, the regular rate is the salary divided by the hours actually worked that week, so it changes every week. Overtime is then paid at not less than one-half that rate. (29 CFR 778.114)

What the tool does

The tie-out tool stops when it sees a salary earning code and gives no number. It needs the hours the salary covers, which a timesheet does not show.

Do the whole year from a file

Drop a timesheet CSV, paste the register overtime totals, and get a worksheet per employee with the reason for every difference.

Open the tie-out tool

Runs in your browser. Payroll data is never uploaded.

Questions

Do salaried employees get a Code TT amount?

Yes, if they are covered by FLSA overtime and were paid overtime for hours worked over 40. Exempt employees do not have qualified overtime.

Sources

Fetched 2026-11-10. Regulation text was checked against the federal annual edition; links open the current online version.

Updated 2026-11-10. Tickfoot is an information tool, not tax, legal or professional advice.