Enterprise SaaS & Tech CASE STUDY
Enterprise SaaS Exempt Salary Thresholds & Stock Compensation ($80M Payroll)
Case study analyzing how CloudTech Solutions audited FLSA salary basis thresholds ($43,888 / $58,656) and Form W-2 Box 12 equity tax withholdings.
Executive Background & General Ledger Audit
Prior to payroll re-engineering, the organization faced discrepancies between manual overtime calculations and statutory FLSA 29 U.S.C. § 207 standards. By deploying automated regular-rate algorithms and statutory FICA tax caps, payroll leadership established full DOL compliance.
Financial Transformation Walkthrough
Annual Gross Payroll: $45,000,000
- Baseline Overtime Expense: $3,200,000 (Unadjusted regular rates)
- Corrected FLSA Regular Rate Overtime: $2,840,000
- IRS Form 8846 FICA Tip Tax Credits Captured: +$380,000
- Total Annual Net Cash Savings: +$740,000
- Baseline Overtime Expense: $3,200,000 (Unadjusted regular rates)
- Corrected FLSA Regular Rate Overtime: $2,840,000
- IRS Form 8846 FICA Tip Tax Credits Captured: +$380,000
- Total Annual Net Cash Savings: +$740,000
General Ledger & Cash Flow Impact
Auditing statutory FICA wage base caps ($168,600) and incorporating non-discretionary bonuses into regular-rate overtime calculations generated +$740,000 in net annual cash savings while eliminating DOL audit exposure.