How to Calculate Overtime Pay Correctly

Separate normal hours from overtime hours so the same work is not counted twice.

Use the Overtime Pay alongside this illustrative example.

A practical example

At an illustrative base rate of 20, forty normal hours pay 800. Five overtime hours paid at a 1.5 multiplier add 150, giving 950 gross. If you enter all forty-five hours as normal and add the five overtime hours again, the model will double-count them.

Check the result

Compare hours with the timesheet and verify that the multiplier applies to the particular shift. Weekly totals, daily thresholds and salaried exemptions can produce different entitlement rules.

Try a comparison

Change only the hypothetical overtime multiplier from 1.5 to 2. The five overtime hours then pay 200 and the week totals 1,000 gross. The example shows the effect of the entered multiplier; whether double time applies requires a separate policy check.

What this does not establish

The calculator applies your inputs; it does not determine overtime eligibility or applicable employment law. Deductions and take-home pay are separate.

Report unclear guidance or a result that needs checking.