Cost Calculator AI
Business & StartupPayroll Overtime

Overtime Cost Calculator

Calculate hourly overtime wages (1.5x time-and-a-half or 2.0x double time), employer payroll tax burden on overtime hours, and weekly crew costs.

Base Wage & Weekly Hours

Multiplier & Employer Burden

Overtime Payroll Formula

Overtime Gross = Base Wage × Overtime Multiplier × OT Hours; Total Employer Cost = (Regular Gross + OT Gross) × (1 + Employer Tax & WC %)
  • Overtime Rate: 1.5x base hourly rate for hours worked over 40 in a workweek (or 2.0x for double-time agreements).
  • Employer Burden: Statutory FICA taxes and worker's compensation apply to all gross overtime pay earned.

Step-by-Step Worked Example

Scenario: An employee earning $30/hr working 40 regular hours and 10 overtime hours (1.5x) with a 12% employer tax burden

Calculation Steps:

  1. Regular Gross Pay = 40 × $30.00 = $1,200.00
  2. Overtime Hourly Rate = $30.00 × 1.5 = $45.00 / hour
  3. Overtime Gross Pay = 10 × $45.00 = $450.00
  4. Total Gross Pay = $1,200.00 + $450.00 = $1,650.00
  5. Employer Taxes & WC = $1,650.00 × 0.12 = $198.00
  6. Total Employer Cost Weekly = $1,650.00 + $198.00 = $1,848.00
  7. Blended Hourly Cost to Employer = $1,848.00 / 50 hrs = $36.96 / hour
Result: Total weekly employer cost is $1,848.00 for 50 total hours ($36.96 blended hourly cost, including $450 gross overtime and $198 in employer taxes).

How to Use This Calculator

  1. 1Enter base hourly wage and standard weekly regular hours (typically 40).
  2. 2Input expected overtime hours and select overtime multiplier (1.5x or 2.0x).
  3. 3Add applicable employer payroll tax and workers compensation burden percentages.

Assumptions & Limitations

  • Overtime multiplier complies with Fair Labor Standards Act (FLSA) non-exempt regulations.
  • Workers compensation rates apply to total gross payroll.

Frequently Asked Questions

When is overtime required under federal US law?

The federal Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees 1.5 times their regular pay rate for any hours worked exceeding 40 in a single workweek.

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