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Financial Services & Accounting Firms: Hourly vs. Salaried Employee Payroll (2026)
Hourly versus salaried in a financial services firm is not a preference, it is the exemption test: a salary of at least $684 a week plus a duties test, and financial services firms have industry-specific exemptions on top. Personal financial advisors at the national median earn $2,021 a week. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Who in a financial services firm can be salaried and exempt
Financial services employees generally meet the administrative exemption duties test when their work includes collecting and analyzing a customer's income, assets, investments or debts, determining which financial products fit, and advising on their advantages and disadvantages. An employee whose primary duty is selling financial products does not qualify for the administrative exemption.
To be exempt as executive, administrative or professional employees, workers must be paid on a salary basis of at least $684 per week, equal to $35,568 per year. The highly compensated employee threshold is $107,432 per year, including at least $684 per week paid on a salary or fee basis.
The salary math for financial services firms
The standard salary level is $684 a week, $35,568 a year. BLS puts the May 2025 national median for personal financial advisors at $105,070, which is $2,021 a week, above the floor, so for that role the duties test is the whole question. Paying a salary to a non-exempt employee is legal; it just does not remove overtime, which is then computed on the salary divided by hours actually worked each week.
What changes when a role moves between the two
Moving financial advisors and CPAs from hourly to salaried changes the pay code, the timekeeping rule and the overtime treatment at once. A salaried non-exempt employee still needs hours recorded every week, and a salaried exempt one needs the exemption documented against the rule above, because in an audit the burden of proving the exemption sits with the employer.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Financial services employees generally meet the administrative exemption duties test when their work includes collecting and analyzing a customer's income, assets, investments or debts, determining which financial products fit, and advising on their advantages and disadvantages. An employee whose primary duty is selling financial products does not qualify for the administrative exemption. [DOL Fact Sheet #17M]
- To be exempt as executive, administrative or professional employees, workers must be paid on a salary basis of at least $684 per week, equal to $35,568 per year. The highly compensated employee threshold is $107,432 per year, including at least $684 per week paid on a salary or fee basis. [DOL WHD Earnings thresholds for the EAP exemption]
Read the full guide to FLSA overtime rules for employers, and the rest of the financial services firm payroll library.
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Frequently Asked Questions
Can a financial services firm pay financial advisors a salary and skip overtime?
Only if the role meets an exemption: the $684 weekly salary floor plus the duties test, or an industry-specific exemption. Financial services employees generally meet the administrative exemption duties test when their work includes collecting and analyzing a customer's income, assets, investments or debts, determining which financial products fit, and advising on their advantages and disadvantages.
Does the $105,070 national median for personal financial advisors clear the salary test?
$2,021 a week is above the $684 floor, so salary is not the obstacle; the duties test is. BLS OEWS, May 2025.
What does managed payroll cost for a financial services firm?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Deferred compensation structures, FINRA recordkeeping and performance fee payroll are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Financial Services & Accounting Firms. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Overtime Pay Under the FLSA
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