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elaws - employment laws assistance for workers and small businesses

- Fair Labor Standards Act Advisor

$500,000 Enterprise

You should now have enough information to decide what establishments/businesses are part of your enterprise. Remember that an enterprise is the related activities performed either through unified operation or common control for a common business purpose.

Next, you need to determine if the annual dollar volume of sales or receipts of all businesses and establishments in the enterprise is in the amount of $500,000 or more. The dollar volume of sales or business of the entire enterprise in all establishments is added together to determine whether this threshold is met. Some definitions might be helpful in determining your annual dollar volume of sales:

Gross volume of sales made or business done: This term means the gross dollar volume (not limited to income) derived from all sales and business transactions including gross receipts from service, credit, or other similar charges, exclusive of the internal transactions between them.

Gross volume is measured by the price paid by the purchaser for the property or service sold to him. It is not measured by profit on goods sold or commissions on sales made for others.

Annual dollar volume of sales made or receipts of an enterprise: This consists of the gross receipts from all types of sales made and business done during a 12 month period.

The computation of the annual gross volume of sales or business of the enterprise is made exclusive of excise taxes at the retail level which are separately stated.

It is possible that some enterprises will have annual dollar volume of sales or receipts which fluctuates above and below the $500,000 test. In this situation, the employer must use the last 4 completed quarters to determine coverage for the current quarter. Accordingly, enterprise coverage could exist for one quarter and not the next quarter.

When a new enterprise begins business the employer may not know for a time if its annual dollar volume of sales will equal or exceed $500,000. If your company/organization is a new business select New Business below.

Is the annual dollar volume of sales or receipts for your enterprise in the amount of $500,000 or more?