Question 1

How is overtime pay calculated?

Accepted Answer

Overtime pay is calculated at 1.5 times your regular hourly rate for hours worked over 40 in a workweek, as required by the Fair Labor Standards Act (FLSA). For example, if you earn $20/hour, overtime hours are paid at $30/hour.

Question 2

Are overtime hours taxed differently?

Accepted Answer

No, overtime pay is taxed at the same rates as regular pay. However, because overtime increases your total annual income, it can push you into higher tax brackets, which may make it seem like overtime is taxed more heavily.

Question 3

What is the overtime rate?

Accepted Answer

The standard overtime rate is 1.5 times your regular hourly rate (time-and-a-half). Some states or employment agreements may require double-time for certain situations, but 1.5x is the federal minimum.

Question 4

Do all employees qualify for overtime?

Accepted Answer

No, only non-exempt employees qualify for overtime pay. Exempt employees (typically salaried professionals, executives, and certain administrative roles) are not entitled to overtime pay under FLSA regulations.

Question 5

How does overtime affect my take-home pay?

Accepted Answer

Overtime increases your gross pay significantly, but because it raises your annual income projection, it may push you into higher tax brackets. You'll still take home more money with overtime, but the percentage of each overtime dollar that reaches your bank account may be slightly lower due to progressive tax brackets.

Question 6

Are there state-specific overtime rules?

Accepted Answer

Yes, some states have additional overtime rules. For example, California requires daily overtime (1.5x after 8 hours in a day, 2x after 12 hours). This calculator uses the standard federal weekly overtime rule (40 hours per week).

New York Overtime Calculator

Hourly Rate & Hours

Pay Frequency

Location & Filing

Pre-Tax Deductions (Optional)

Take-Home Pay

Detailed Breakdown

Assumptions & Notes