How this number is made
Overtime pay is your regular rate times a multiplier, usually 1.5 after 40 hours in a workweek under the federal Fair Labor Standards Act. Some employers, contracts, and state rules pay double time on holidays or after a longer day. This page only does the multiplication.
- Use the regular rate that already includes non-discretionary bonuses if your employer does. This form does not compute a blended rate.
- Put hours up to the overtime threshold in straight time.
- Put the extra hours in overtime or double time, not in both.
Formula
Week gross = rate × straight hours + rate × multiplier × overtime hours + rate × 2 × double-time hours.
Worked example
$24 × 40 = $960 straight. Six hours at 1.5 is $36 × 6 = $216. The week is $1,176 before tax, not $24 × 46.
Questions
Does every worker get time-and-a-half after 40?
No. Exempt salaried employees, some transportation and agricultural jobs, and certain commissioned roles follow different rules. State law can also set a daily overtime trigger. Check the Department of Labor or your state agency.
Is the overtime premium taxable?
Yes. It is wages. It is subject to income tax and FICA like the rest of the check. Run the higher weekly gross through the paycheck calculator if you want a tax estimate.