A one-time payment is a singular amount disbursed to an employee that falls outside their regular salary or wages. The nature of one-time payments may vary for exempt and non-exempt employees. One-time payments for exempt employees may be in the form of bonuses to acknowledge superior performance or may serve as compensation for special projects. Non-exempt employees may receive one-time payments solely as recognition for outstanding performance and not as compensation for additional work hours. Any additional hours worked should be properly recorded on their timesheets.
Payroll deductions refer to the amounts withheld from an employee’s payroll check by the employer. The distinction between mandatory and voluntary deductions lies in whether the deduction is required by law or is chosen by the employee.