Overtime Calculator: Maximize Your Extra Hours
Understanding Overtime Pay
Overtime pay is additional compensation for hours worked beyond standard working hours. Most commonly, it's calculated at 1.5 times the regular hourly rate for hours worked over 40 per week.
How to Calculate Overtime
Standard Overtime Calculation:
- Regular Pay: Regular Hours × Regular Rate
- Overtime Pay: Overtime Hours × (Regular Rate × 1.5)
- Total Pay: Regular Pay + Overtime Pay
Types of Overtime Rates
- Time and a Half: 1.5× regular pay (most common)
- Double Time: 2× regular pay (holidays/special circumstances)
- Premium Pay: Various rates for specific situations
When Does Overtime Apply?
- After 40 hours in a workweek (standard)
- On holidays or weekends (varies by employer)
- Beyond 8 hours per day (in some jurisdictions)
- Special industry-specific rules
Frequently Asked Questions
Who is eligible for overtime pay?
Eligibility depends on:
- Employment classification (exempt vs. non-exempt)
- Local labor laws
- Company policies
- Industry regulations
How does overtime affect tax calculations?
Overtime pay is taxed at the same rate as regular income but may push you into a higher tax bracket if it significantly increases your total income.
Overtime Best Practices
- Keep accurate records of all hours worked
- Understand your overtime eligibility
- Know your company's overtime policies
- Track overtime patterns for better work-life balance