Salary — Payroll Definition

What is Salary?

A salary is compensation stated as a fixed amount for a recurring period, often expressed annually and divided among pay periods. Salary alone does not make an employee exempt from overtime. Under the current federal white-collar exemption framework, the employee generally must satisfy salary-basis, salary-level, and duties tests; the Department of Labor is applying the 2019 standard salary level of $684 per week after the 2024 rule was vacated. State law can be more protective.

How to apply this payroll definition

Locate the label beside its current-period amount, taxable-wage basis, and year-to-date total. Compare it with prior genuine statements, benefits materials, the employer's payroll documentation, and the primary source linked on this page. The same abbreviation can carry a different employer-specific meaning.

What the label does not prove

A familiar term or plausible amount does not authenticate a pay statement or confirm identity, employment, wages, deductions, tax compliance, or eligibility. Ask the verified payroll contact about an unknown code. Use current agency instructions or a qualified adviser when a rate, filing, benefit, garnishment, or legal decision depends on the answer.

Browse all payroll definitions or use the pay-statement codes guide.