What is the meaning of exempt?
1 : free or released from some liability or requirement to which others are subject was exempt from jury duty the estate was exempt from taxes.
2 obsolete : set apart.
exempted; exempting; exempts..
What does an exemption allow you to do?
The exemption reduces your taxable income just like a deduction does, but has fewer restrictions to claiming it. If you are married and file a joint tax return, both you and your spouse each get an exemption.
How do I know if I am exempt or non exempt?
An exempt employee is not entitled overtime pay by the Fair Labor Standards Act (FLSA). These “salaried” employees receive the same amount of pay per pay period, even if they put in overtime hours. A nonexempt employee is eligible to be paid overtime for work in excess of 40 hours per week, per federal guidelines.
What are the conditions for exemption?
Employees must meet specific qualifications to be exempt. Employees can claim exemption if both of the following situations apply: In the previous year, the employee had the right to a refund of all federal income tax withheld from their wages because they had no tax liability.