How do you calculate overtime pay?+
Multiply your regular hourly rate by 1.5, then multiply that by the number of overtime hours. At $25 an hour, time and a half is $37.50, so 5 overtime hours pay $187.50 on top of your regular 40 hours. Under the Fair Labor Standards Act, overtime is owed on hours worked beyond 40 in a single workweek — not beyond 8 in a day, which is a state-level rule in places like California.
What is time and a half for $20 an hour?+
Time and a half for $20 an hour is $30 an hour. The formula is the regular rate × 1.5. For any rate, add half the rate to itself: $18 becomes $27, $22 becomes $33, $30 becomes $45.
Is overtime taxed at a higher rate?+
No. Overtime is ordinary wages and is taxed at the same rates as the rest of your pay. What confuses people is withholding: many payroll systems annualise the larger paycheck, so a week with heavy overtime can have a bigger share withheld than usual. That evens out when you file. Separately, for tax years 2025 through 2028 a federal deduction lets eligible workers deduct the premium half of FLSA overtime, up to $12,500 ($25,000 joint).
How many hours is overtime?+
Federally, any hours over 40 in a workweek. A workweek is a fixed, recurring 168-hour period your employer defines; it does not have to start on Monday. Some states add daily overtime — California pays time and a half after 8 hours in a day and double time after 12.
What is double time and when does it apply?+
Double time is twice your regular rate. Federal law does not require it at all — the FLSA stops at time and a half. Double time comes from state law (California, after 12 hours in a day or on the seventh consecutive workday), union contracts, or employer policy for holidays.
Do salaried employees get overtime?+
Some do. Being paid a salary does not by itself make you exempt — you must also earn above the federal salary threshold and perform exempt executive, administrative or professional duties. A salaried worker below the threshold, or whose duties are not exempt, is entitled to overtime calculated from their effective hourly rate.
Is overtime pay taxable?+
Yes. Overtime pay is taxable as ordinary wages — federal income tax, Social Security and Medicare all apply, as does state income tax where you live. The only relief is the 2025–2028 federal deduction for the premium half of FLSA overtime, which reduces income tax on that portion but not payroll tax.
Is overtime always time and a half, and what is double time pay?+
Federally, yes — the FLSA requires time and a half and nothing more. Double time pay is twice the regular rate and is never federally required; it comes from state law, union contracts or employer policy. To calculate double time, multiply the regular rate by 2: $22 an hour becomes $44.
What is overtime on overtime?+
It refers to recalculating the overtime rate when extra pay is added after the fact. Because the regular rate must include non-discretionary bonuses and shift differentials, a bonus paid later can retroactively raise the regular rate — meaning additional overtime premium is owed on hours already worked. Employers settle this with a true-up payment.
How do you figure overtime pay quickly?+
Half the hourly rate is the premium per overtime hour. At $24 an hour, the premium is $12, so 6 overtime hours add $72 above what those hours would have paid at straight time — or $216 in total overtime pay. The overtime rate calculator above does both figures at once.
Is overtime calculated on gross or net pay?+
On gross. The overtime premium is applied to your regular rate of pay before any tax or deduction. Your regular rate also has to include non-discretionary bonuses and shift differentials, which can make it slightly higher than your base hourly wage.