Make-Up Payment & Pro-Rating
•If an employee’s total annual compensation does not equal $100,000 by the end of the year:
*The employer may, within one month after the end of the year, make one final payment to reach the $100,000 level; or
*The employee will be tested for exemption under the standard duties tests
•The $100,000 may be pro-rated for employees who do not work the full year
•The employer may use any 52-week period at the year
Special rules allow for prorating the annual compensation if employees work only part of the year, and allow the employer to make one final payment within one month after the end of the year to satisfy the required $100,000 annual amount.  Employees whose compensation does not equal $100,000 by the end of the year can still be tested for exemption on the standard duties tests.