We pay most employees (other than non-officers, non-exempt) on an hourly basis, so when they have an appointment that cuts down of hours worked, they are not paid for those hours. I prefer the salary system, e.g. 40 hours per week are paid with a reasonable amount of time off not deducted.

Paying on an hourly basis results in pay only for hours worked, but it seems to lack flexibility when a flexible environment is a goal.

Is it the norm out there to go with hourly covering full-time employees that also receive insurance benefits - not including true hourly (part-time) employees?

You can go either way. It's more of a management philosophy. Just remember if they are paid on a hourly basis they are entilted to overtime pay no matter what their position may be.

If I'm reading your question correctly, you are paying an hourly wage to salaried employees. Salaried employees receive a weekly wage and only in vary rare instances can that wage be adjusted. Deducting an hour here and there can subject the employees to reclassification and overtime. Since the pay is being adjusted, your bank's records would reflect this activity and that can be dangerous.
You might want to look at this site for further information.
http://www.toolkit.cch.com/text/Po5_4081.asp Sorry, this is not a "link" since I don't know how to add a "link" to a message. You'll have to type it in - I don't do technology very well.

Jeanette,

Just an FYI - your links to CCH materials are not going to work as that is a subscribers only area.

I'm not a subscriber and I use the cch site all the time. I have share this site with others and they use it successfully also. It should work if you type the http address into your address line and send. (How's that for techie language? I generally call them liney things and stuff)

You can also designate employees as "salaried, non-exempt". Under this rule you guarantee them a set salary based on their hourly rate times 40 hours. If they work less than 40 hours, they get the full salary. If they work more than 40 hours they get time and one half. It should be used sparingly. Misuse of time can become a problem with employees in this designation. Many health care providers such as hospitals use this for nursing and therapist positions. The designation does not conflict with FLSA, as long as you are paying time and a half.

All of these items should be embedded in your payroll system, and most are printed on the paycheck stub. The rest of the items are found in the personnel file (i.e DOB, gender, title). Therefore there is no need for extra record keeping.