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Financial Services & Accounting Firms: Overtime Rules and Payroll Compliance (2026)
Overtime in financial services firms is time and one half after 40 hours on the regular rate, and the regular rate has to absorb deferred compensation structures and FINRA recordkeeping before the premium is applied. BEG runs financial services firm payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
The overtime rules that apply to financial services firms
For non-exempt staff paid by commission, salary or other basis, overtime must be computed on the average hourly rate found by dividing total pay for the workweek by total hours actually worked. The regular rate includes all remuneration except statutory exclusions such as discretionary bonuses and gifts.
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.
A worked example at financial services firm wages
Personal financial advisors at the May 2025 national median of $105,070 earn about $51 an hour on a 2,080-hour year. Ten overtime hours in a week cost $758 at time and one half. If that week also carried deferred compensation structures, the amount folds into the regular rate first and the premium rises with it; leaving it out is the most common overtime error in this industry.
How the payroll is set up to get it right
Each pay component is flagged at setup as included in or excluded from the regular rate, hours are captured by workweek rather than pay period, and any industry exemption is applied per employee with the supporting record kept. Overtime is then arithmetic, not judgment, on every run.
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.
- For non-exempt staff paid by commission, salary or other basis, overtime must be computed on the average hourly rate found by dividing total pay for the workweek by total hours actually worked. The regular rate includes all remuneration except statutory exclusions such as discretionary bonuses and gifts. [DOL Fact Sheet #23]
- 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 how to calculate overtime pay, and the rest of the financial services firm payroll library.
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Frequently Asked Questions
Which financial services firm employees are exempt from overtime?
For non-exempt staff paid by commission, salary or other basis, overtime must be computed on the average hourly rate found by dividing total pay for the workweek by total hours actually worked. The regular rate includes all remuneration except statutory exclusions such as discretionary bonuses and gifts.
How is overtime calculated on deferred compensation structures?
deferred compensation structures is added to the week's straight-time pay, the total is divided by hours worked to get the regular rate, and the half-time premium is paid on that rate for every hour over 40. 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.
What does an overtime hour cost at financial services firm wages?
At the BLS May 2025 national median for personal financial advisors, $105,070 a year or about $51 an hour, an overtime hour is $76 before any bonus or differential is added to the rate.
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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