Our overtime calculator helps you determine how much overtime pay an employee has earned while working extra hours. By knowing the overtime rates for each of your employees, you can easily add in the extra pay while budgeting and calculating payroll.  

Disclaimer: This overtime calculator is created only for mathematical purposes. It should not be viewed as legal advice. You still need to comply with all state, local, and federal overtime laws.

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Daily Overtime Calculator

The formula to calculate overtime pay for a regular hourly wage is still the same for those making a daily overtime rate. The main difference is that you calculate time and a half on a daily basis rather than weekly. 

In other words, instead of calculating overtime pay based on a full 40 hours, you would only add it to the eight hours of regular pay in a work day. For example, if your employee worked 10 hours during a standard eight-hour shift, then that employee is entitled to two hours of overtime pay for that day.

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Overtime Calculator: Government Minimums

There are two types of employees under the overtime requirements set by the government: exempt and nonexempt. In general, a salaried employee is usually considered exempt.

However, there are some limitations. Executive, administrative, and professional (EAP) employees must meet the minimum total pay requirement outlined by the government in order to be exempt from overtime pay.

These are the earnings thresholds exempt employees need to meet as of July 1, 2024:

• Standard salary: $43,888 annually ($844 per week) 
• Highly compensated employees: $132,964 annually (including at least $844 per week paid on a salary or fee basis)
• Special salary (Puerto Rico, Guam, U.S. Virgin Islands, Commonwealth of the Northern Mariana Islands): $23,660 annually ($455 per week) 
• Special salary (American Samoa): $19,760 annually ($380 per week)
• Employees in the motion picture industry: $1,043 per week (or proportionate amount based on number of days worked) 
• Computer employees paid hourly: $27.63 per hour 

The overtime rules and rates are subject to change beginning January 1, 2025.

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Overtime Calculator With Taxes

Overtime isn’t taxed any differently than an employee’s regular wage tax bracket. With that said, if an employee earns more money from extra hours and increases their gross income, they may move into a higher tax bracket. Their total pay as a whole will be taxed more as a result.

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Overtime Calculator App

Tracking your employees’ overtime compensation can help you estimate total overtime pay and how often employees work beyond their regular hours. 

Here are a few specialized apps that you can download to calculate average hourly rate, double time, total pay, and more: 

• Jibble
• Hubstaff 
• Clockify
• Harvest
• Timely
• Ruddr
• BambooHR
• BigTime
• Synchroteam

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Overtime Calculator Excel

If you choose to calculate an employee’s total weekly compensation in Excel, you’ll need to set up cells for standard pay rate, hours worked, and overtime pay rate. Here’s the formula to use:

=IF(Hours>40,(40*[regular pay rate])+(([hours worked]-40)*[overtime pay rate])

One thing to note is that this formula will check to see if an employee exceeds 40 hours per week before adding in the overtime pay amount.

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How to Calculate Overtime for Monthly Salary Employees

Calculating a salaried employee’s pay if they work overtime is similar to the overtime formula for an hourly employee. There’s just one extra step involved. 

1. Determine the employee’s hourly wage based on their monthly salary. Simply divide their total monthly pay by the number of weeks in the month.
2. Once you know their weekly pay, divide their weekly salary by 40 hours per week.
3. Calculate time and a half as usual, assuming it’s based on a 40-hour work week.

While there are other ways to get to the same total, this method requires minimal steps compared to others, leaving less room for error.

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Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is responsible for setting a minimum wage and regulating overtime, recordkeeping, and youth employment. The FLSA covers employees in the private sector as well as federal, state, and local governments.

The current minimum wage is $7.25, which was made effective on July 24, 2009. However, many areas have a higher state minimum wage.   

Under FLSA overtime laws, nonexempt employees are required to receive overtime pay when they work over 40 hours in a work week at a rate that is one and one-half times their regular pay rate. According to the FLSA rules, a work week consists of 168 hours spread over the course of seven days. It doesn’t need to follow the calendar week.

Under federal law and state law, if employers don’t pay nonexempt employees the required overtime pay rate, then they may be subject to civil and criminal penalties.

Overtime FAQs

Have a question about overtime hours? You’re not alone! The following are commonly asked questions from employers who have submitted their timesheets for overtime work.

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What is overtime pay?

Overtime pay includes any additional hours worked beyond a standard work week. It’s often paid at a rate of time and a half an employee’s regular wage. 

Many states follow the same standard of paying overtime to nonexempt employees after they exceed more than 40 hours in a given work week. However, rules and regulations on who qualifies for an overtime pay rate can vary by state. 

The U.S. Department of Labor website breaks down the current overtime laws in each state and their accompanying minimum wage. States with daily overtime pay and not weekly overtime pay include the following:

• Alaska
• California
• Colorado
• Nevada

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How much is overtime pay?

According to the federal government, the overtime rate is required to be at least time and a half, or 50% more than an employee’s regular hourly wage. Employers need to pay overtime for nonexempt employees who work beyond the legal threshold for regular hours.

Some employers may also decide to offer double time in certain situations or increase the rate of pay for nights and weekends. Increasing overtime pay beyond the required legal minimum or paying time and half to salaried employees is optional.

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How do I calculate my overtime pay?

While there may be exceptions to the rules and regulations, this is how you calculate time and a half for a nonexempt employee who has exceeded over 40 hours worked:

Overtime pay = (hourly rate × 1.5) × overtime hours worked

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What is overtime for $22 an hour?

Now that you know how to calculate overtime pay for a regular hourly wage, let’s calculate time and a half for an employee who makes an hourly wage of $22. Imagine that this employee worked 10 overtime hours during a 40-hour work week.  

Overtime pay = ($22 × 1.5) × 10 hours

In this scenario, the total pay for the employee’s overtime hours worked equals $330.

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What is overtime pay for $15 an hour?

With the same formula as above, let’s calculate the overtime pay of an employee who makes a normal rate of $15 per hour and works 10 overtime hours during a 40-hour work week.

Overtime pay = ($15 × 1.5) × 10 hours

In this scenario, the total pay for the employee’s overtime hours worked equals $225.

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