Tuesday 10 February 2015

Calculate Overtime Earnings

Calculate your overtime earnings.


According to the Fair Labor Standards Act, employers must pay certain employees overtime for any time worked that exceeds 40 hours. It must be paid on the scheduled payday for that week. Overtime is typically 1 1/2 times an employee's normal hourly pay rate. Overtime might also be paid for working weekends or certain holidays, but that is for the employer to decide and is not part of the law.


Instructions


1. Calculate your hourly rate of pay. For hourly employees, this is simply the dollar amount per hour you are paid. For salaried employees who qualify for overtime pay: take your weekly salary and divide it by 40 hours to calculate your hourly rate of pay.


2. Divide your hourly pay by two. For instance, if you make $10 an hour and divide it by 2, the answer is $5.


3. Add your regular hourly wage to the amount of your wage divided by two. For instance, if your hourly wage is $10 an hour, you will add $10 plus the $5 you would get when dividing it in half. That would make your overtime hourly wage $15 an hour. If you worked 10 hours of overtime, you would multiply that by $15 to arrive at $150 in gross overtime wages.

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