Overtime Pay Estimator
Calculate time-and-a-half and double-time earnings with precision tax forecasting.
Estimated take-home after 20% tax
Deep Dive: Overtime Compensation Logic
Understanding the Fair Labor Standards Act (FLSA) is crucial for ensuring you represent the full value of your extra work hours.
The 1.5x Rule (FLSA)
According to federal law, non-exempt employees must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. This means if you earn $20/hr, your overtime rate is $30/hr.
Double Time (2.0x)
There is no federal requirement for double time pay, regardless of hours worked. However, some states (like California) or union contracts mandate double time for hours worked beyond 12 in a single day or for hours worked on the seventh consecutive day of a workweek.
Tax Implications
Overtime pay is considered "supplemental wages" by the IRS if paid separately from regular pay, or just "wages" if aggregated. While it's taxed at your regular income tax rate, the larger paycheck might trigger a higher withholding rate temporarily.
Exempt vs. Non-Exempt
Not all employees qualify for overtime. "Exempt" employees (often salaried professionals, executives, or administrators earning above a certain threshold) are not entitled to overtime pay under FLSA rules.