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Agency Payroll: Hourly vs Salaried, Does It Matter? | BEGl (2026)
Hourly versus salaried in a marketing agency is not a preference, it is the exemption test: a salary of at least $684 a week plus a duties test, and marketing agencies have industry-specific exemptions on top. Market research analysts and marketing specialists at the national median earn $1,515. BEG: $25 per employee per month in your existing platform or $45 on isolved, live in 3 to 5 days.

Who in a marketing agency can be salaried and exempt
Copywriters, designers and other creative staff can be exempt creative professionals only if paid a salary of at least $684 per week and their primary duty requires invention, imagination, originality or talent in a recognized artistic or creative field. Work that mainly depends on intelligence, diligence and accuracy does not qualify, and the test is applied case by case.
Account managers may fall under the administrative exemption only if salaried at the standard level, performing office work directly related to management or general business operations of the employer or its clients, such as advertising, marketing or public relations, and exercising discretion and independent judgment on matters of significance.
The salary math for marketing agencies
The standard salary level is $684 a week, $35,568 a year. BLS puts the May 2025 national median for market research analysts and marketing specialists at $78,760, which is $1,515 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 account managers and copywriters 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.
- Copywriters, designers and other creative staff can be exempt creative professionals only if paid a salary of at least $684 per week and their primary duty requires invention, imagination, originality or talent in a recognized artistic or creative field. Work that mainly depends on intelligence, diligence and accuracy does not qualify, and the test is applied case by case. [DOL Fact Sheet #17D]
- Account managers may fall under the administrative exemption only if salaried at the standard level, performing office work directly related to management or general business operations of the employer or its clients, such as advertising, marketing or public relations, and exercising discretion and independent judgment on matters of significance. [DOL Fact Sheet #17C]
Read the full guide to FLSA overtime rules for employers, and the rest of the marketing agency payroll library.
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Frequently Asked Questions
Can a marketing agency pay account managers 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. Copywriters, designers and other creative staff can be exempt creative professionals only if paid a salary of at least $684 per week and their primary duty requires invention, imagination, originality or talent in a recognized artistic or creative field.
Does the $78,760 national median for market research analysts and marketing specialists clear the salary test?
$1,515 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 marketing agency?
$25 per employee per month inside your existing platform or $45 on BEG's isolved HCM, all-inclusive, with a $500 monthly minimum. 1099 vs W-2 freelancer classification, project-based bonuses and multi-state remote teams 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 Marketing & PR Agencies. BEG manages payroll at $25-$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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