Rules for Overtime Have Changed…Nonprofits, Take Note!

Who’s been hitting the books? RBI’s Chris Smith has been, that’s who! He is always brushing up on new tax rules that will impact our amazing clients. He does the studying so he can keep you informed, up-to-date, and out of trouble with the IRS.

Here is a big change to the tax law in 2020 that impacts employers that Chris wants to share with you. Overtime rules have changed! The criteria for which employees qualify for being exempt has been updated, as of January 1, 2020.

First, let’s do a quick review about what it means to be “exempt” and “non-exempt.” If an employee qualifies to receive overtime pay, they are considered to be “non-exempt.” However, if they are not eligible to receive overtime pay, they are considered “exempt.”

Want to know if your employees will qualify as exempt or not in 2020? If so, here are the questions to ask based on two new rules from the IRS.

Here are the questions:

  1. Does your employee earn less than $684 per week ($35,568 per year)?

If your answer is no, your employee is considered to be non-exempt.

If your answer is yes, please review and answer question 2:

  1. Does your employee direct the work of 2 or more employees?

If you answer “yes” for both questions 1 and 2, your employee is considered to be exempt.

If your answer is “yes” for question 1 but “no” for question 2, your employee is considered non-exempt.

It’s important to know that this impacts all employers! Often non-profits are excluded from many tax changes, but this one impacts everyone! Nonprofits are NOT excluded from this change.

To give you some background, this change to the overtime rules was first proposed under President Obama, but they were held up in the court system starting in December 2016. The Department of Labor made the final changes on January 1, 2020.


We have included the details for these rules here if you want additional information:

  1. The “standard salary level” threshold for white-collar exempt employees will increase from $455 ($23,600 per year) to $684 per week ($35,568 per year). That means starting January 1, employers will need to pay overtime to employees who earn less than $684 per week ($35,568 per year).
  2. Direct work of 2 or more employees – This threshold applies to non-executive, administrative, or professional (EAP) employees (i.e., white collar employees) who earn at least $684 per week and whose primary duties involve performing office or non-manual work and include at least one of the duties of an EAP employee (e.g., directing the work of two or more employees). The duties test did not change from the current rule.

We’re so glad that Chris is always on top of what you need to know about your taxes for your business. If you have any questions about this new overtime rule, or any other tax questions, please contact RBI Services or Community First. We’re here to support you!

Meet Alexis, the Mastermind Behind the Web Presence Here at RBI Services

What do small businesses have in common with creatures that live under the sea? In order to operate effectively, they seem to need eight arms like an octopus! But of course most entrepreneurs have the standard two arms available. So what do you do as a small business owner when you need help? You reach out one of your two arms to a super resource like Alexis Chouinard with Chicklet Marketing.

The mission of Alexis’ company, Chicklet Marketing, is to provide exceptional value, quality, and services for small business marketing needs. “I have fifteen years of experience and training in the marketing field, so I use that to make your business become more profitable.” Alexis channels her experience and knowledge into creating the best first impression for her clients, including website creation. “I know as soon as their clients see their website, my client will be evaluated. Their potential clients will decide whether they want to do business with them right away. First impressions count! I help my clients create a website that will wow potential customers and give them a good impression about customer service, price, and quality. I make your business pop compared to the competition. It matters!”

Chicklet Marketing mostly supports small businesses. “I love helping them grow!” Alexis comes from a family of successful small business owners, so she understands the entrepreneurial spirit. “I love translating that spirit into a sleek new website or logo design for small businesses. I have a proven track record of increasing visibility and traffic through my online advertising campaigns, which means more profit for my clients.” Alexis helps clients choose a brand that will not only be unforgettable but also set up the same good first impression as their website. “You want to make sure potential clients know you and your company are the best choice for them.”

The biggest benefit Alexis brings to small businesses is peace of mind.

“I don’t care what time my clients call me,” she shared with us. “Last night, I had a client who called me at 10:30. She panicked and said her website disappeared! Turns out it was a simple fix which we solved in only ten minutes. She was so relieved!”

Let’s see if your average website hosting platform can provide that kind of service! And Alexis often beats the prices of other website hosters. “People are often shocked when they see how much I can save them.”

It’s hard sometimes for Alexis to talk about all of the services she provides when she attends networking meetings. “You only have a minute or two to share!” She described how she helps clients to brand themselves – or rebrand when needed. She also designs business cards, flyers and other printed materials. “Our print pricing is comparable to Vistaprint while having better quality and custom design!”

Alexis went on to explain, “While designing websites and logos are my bread and butter, I also offer website hosting and maintenance, online advertisement campaigns, like Google Adwords and Facebook, branding materials, Gsuite setup, and optimization of your web presence.” Alexis believes strongly in providing maintenance for her clients. As she admits, “I’m a control freak!” While she laughs when she says this, she emphasizes that it is true. “I would rather protect my clients and proactively prevent issues. And my clients love it!”

Another important service Chicklet Marketing offers is security. As a subject matter expert in SSL, or Secure Socket Layer, which protects communications, Alexis has collaborated with RBI on an exciting development for our clients. This project is the creation of a secure client portal. “The portal will enable clients to share documents and messages securely with the RBI team. Security is so important for any business relationship, but especially accounting and insurance.” Having expertise with SSL helped Alexis develop the portal. “We use EV SSL certificates, which act as an insurance policy for secure transmissions.” What does this mean for our awesome RBI clients? When you share your documents and other sensitive information, you can rest assured your data is safe. It will save time while still preserving the important company and client bond we bring to you when we meet face-to-face.

In addition to creating the portal, Alexis and RBI have another common passion – helping nonprofits. “I love assisting nonprofits to create their websites by charging them less money,” she explained. She offers 25% off of her regular website design pricing for all non-profit organizations.

We at RBI know we can count on Alexis and Chicklet Marketing – and you can too! While she does just have two arms, she works as though she has eight – and maybe a few to spare!