Overtime Pay Calculator

Calculate your gross and net take-home pay with overtime hours. Supports time-and-a-half (1.5x), double-time (2.0x), custom multipliers, and estimated tax withholding.

Wage & Overtime Hours

$
hrs
hrs
%
Estimated Weekly Gross Pay
$1,300.00/ weekly

Net take-home of $975.00 after 25% estimated tax withholding

+$300.00 OT Premium

OT Hourly Rate

$37.50

1.5x multiplier

Regular Base Pay

$1,000.00

standard hours

Overtime Pay

$300.00

extra hours

Taxes Withheld

-$325.00

~25% est. rate

Weekly Paycheck Component Breakdown

Regular Base Pay (40 hrs @ $25.00/hr)$1,000.00
Overtime Premium (8 hrs @ 1.5x = $37.50/hr)+$300.00
Total Gross Pay (Weekly)$1,300.00
Estimated Tax Withholding (25%)-$325.00
Estimated Take-Home Net Pay$975.00
Annualized Overtime Value

Working 8 overtime hours consistently every week adds an estimated +$15,600 per year in gross earnings to your base compensation.

Overtime Pay & Gross Earnings Formulas
Overtime Hourly Rate
OT Rate = Base Hourly × Multiplier
Overtime Earnings
OT Pay = OT Rate × OT Hours
Total Gross Pay
Gross = Regular Pay + OT Pay
Step-by-Step Calculation Breakdown
Example: $25.00/hr Base Wage with 40 Regular Hours + 8 Overtime Hours at 1.5x
1. Regular Base Pay: 40 hrs × $25.00/hr = $1,000.00
2. Overtime Rate (1.5x): $25.00 × 1.5 = $37.50 / hr
3. Overtime Earnings: 8 hrs × $37.50/hr = $300.00
4. Total Weekly Gross: $1,000.00 + $300.00 = $1,300.00
5. Estimated Tax Withholding (25%): $1,300.00 × 0.25 = -$325.00
Estimated Weekly Take-Home:$975.00 Net Pay ($1,300.00 Gross)

Key FLSA Regulations on Overtime

  • Non-Exempt Thresholds: Under Department of Labor regulations, hourly workers and salaried employees earning below the standard salary threshold are entitled to FLSA overtime protections.
  • Workweek Definition: An employer's workweek is a fixed and regularly recurring period of 168 hours (seven consecutive 24-hour periods). Overtime cannot be averaged across two weeks unless authorized under specific healthcare exemptions.
  • Bonuses in the Regular Rate: Non-discretionary bonuses and commission payments must be factored into the employee's regular hourly rate when determining overtime pay.

Frequently Asked Questions

What is the standard overtime rate under US federal law?
Under the Fair Labor Standards Act (FLSA), the statutory overtime rate is 1.5 times (time-and-a-half) your regular hourly rate for all hours worked exceeding 40 in a single workweek. Salaried non-exempt workers are also entitled to overtime compensation.
When does daily vs. weekly overtime kick in?
Federal law calculates overtime strictly on a weekly basis (over 40 hours/week). However, states like California, Nevada, and Alaska enforce daily overtime thresholds (e.g., time-and-a-half after 8 hours/day and double-time after 12 hours/day).
Is double-time pay required by law?
Federal law does not mandate double-time (2.0x). However, state labor laws (like California for work exceeding 12 hours in a single workday or the 7th consecutive day) or union collective bargaining agreements often enforce double-time provisions.
Are overtime earnings taxed at a higher rate?
No. Overtime pay is taxed as ordinary income under the same progressive tax brackets as regular wages. While higher gross earnings may cause higher withholding on that specific paycheck, your true tax liability is calculated on your total annual taxable income.
How do I calculate overtime on a salaried employee?
For salaried non-exempt workers, divide the weekly base salary by the contracted weekly hours (usually 40) to determine the regular hourly rate, then multiply by 1.5 for all overtime hours worked.

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