Time and a Half Calculator

Overtime payments made to nonexempt employees are a type of payroll record and, thus, must be retained for at least three years in accordance with the FLSA. Additionally, the timesheets or other documents that show how the wages were calculated have to be saved for at least two years. Some states have their own payroll recordkeeping requirements, which may span longer time periods than those required by the FLSA. The overtime rate must be at least 1.5 times the amount of your hourly pay rate.

Minimum Wage and Tipped Employees

Employees can be scheduled to work up to 40 hours per week as standard scheduling. If an employee works over 40 hours, he or she is working overtime hours and will be paid a higher rate for this time. The rate is one and a half times the hourly rate that the employee earns times the number of hours of overtime worked. This includes any time worked beyond the normal 40-hour workweek, as well as any time worked on weekends or holidays.

Calculating Overtime Pay

Alongside her accounting practice, Sandra is a Money and Life Coach for women in business. If you have any problems using our time and a half calculator, please contact us. If all this math is making what is overtime pay for 13 an hour your head spin, don’t worry – you can use our time and a half calculator to doall the hard work for you. Discover how this compressed week format can boost productivity and employee satisfaction.

How To Calculate Overtime: A Comprehensive Guide

In such cases, employers must use the blended rate or weighted average of all rates paid in order to calculate the overtime premium due for hours worked over 40 in the workweek. Note that the FLSA has an exception to this rule that allows employer to pay overtime via the “rate in effect.” Most states, however, do not permit this method. An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work. Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days.

If you are paid $18 per hour, you will make $27 per hour when being paid time and a half ($18 × 1.5) and $36 when beingpaid double time. For more additional assistance, check out our free overtime calculator. «Is Extra Pay Required For Weekend Or Night Work?»Additional information about overtime pay. Fact Sheet on the Overtime Pay Requirements of the Fair Labor Standards Act (FLSA) (PDF)Provides general information concerning the application of the overtime pay provisions of the FLSA. Once you have a list of items that you could do during overtime hours, meet with your boss to discuss them. If you can make your boss’s life easier, they are more likely to allow you to work overtime hours.

Overtime Pay Calculation for Hourly Employees

• The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA).
• If your team works longer than 50 or 55 hours a week, according to the FLSA, you may even have to pay double time, which is twice their normal hourly rate.
• It is crucial for employers to understand these overtime myths and guarantee pay fairness by accurately classifying employees and tracking work hours.
• What is more, you will discover what is time and a half pay, who is an exempt employee is, and some examples of exempt jobs.
• Keep in mind that states’ minimum wages may be greater than the federal minimum.
• Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay.

In addition, the rule will adjust the threshold for highly compensated employees (HCE), now requiring a minimum annual compensation of $132,964 to be considered exempt. Overall, overtime pay is a great way to increase your annual income and earning potential without having more than one job. Taking on new tasks, making your boss’s job easier, and going above and beyond are all ways to have overtime hours approved and work towards a future pay increase. Some states, like California, calculate overtime daily, which means that overtime is paid for any hours worked over 8 in a given day. Whether you are eligible for overtime pay depends on the nature of your job, the state’s law in which you work, and how many hours you have worked in a given week. If you would like the calculator to calculate your total overtime wages for a given number of overtime hours, enter the number of overtime hours.

If you don’t have a policy in place specifying employees’ work hours, then all hours worked over 40 in a workweek must be paid at the overtime rate. Some states also have rules about the number of hours one can work in a day. For example, if an employee works more than 8 hours in a day, then they are eligible for overtime pay for that day, even if they work only 40 hours to get their weekly salary. While the FSLA sets out its guidelines, the State rules must be adhered to. If an employee is paid commissions or on some other basis, the overtime pay due must be computed on the basis of the average hourly rate derived from such earnings, per the FLSA. If you would like the calculator to calculate how much you would earn annually in overtime wages if you worked a given number of overtime hours each pay period, select your pay period.

How to Calculate Overtime Pay Rate

Moreover, the term overtime is often used to name the payment received for extra working hours. Note that certain states may have different methods of calculating overtime for piece-rate workers. If you are paid by the hour, you can calculate your time and a half rate by multiplying your hourly rate by 1.5. You’ll need to check your contract or ask your employer about the terms of your overtime pay.