AZ timecard/piecework question

[kimdi74]

What is the name of your state (only U.S. law)? Arizona

Can an employer pay someone a lump sum on payroll, as opposed to by the hour?

We have someone who was previously paid on a "piece work" basis and got a 1099 at the end of the year, and he now wants to be on payroll to start withholding taxes, Social Security, etc. He is still turning in "lump sums" instead of a number of "hours" (and an hourly wage) for the job, and I wondering if this is ok to pay in this manner, or if they are on payroll I am required to track hours for Overtime purposes?

Thank you for any information!

[cbg]

The chances are excellent that you should have had him on the payroll all along, and yes, if that is the case you are required by law to track his hours.

[pattytx]

Agree with cbg. However, you don't have to PAY him by the hour. You do, however, have to TRACK the hours so that 1) you make sure you pay at least MW and 2) you know whether overtime pay is due or not.