The fastest way to understand overtime is to watch it worked out. Here are six calculations covering the situations that actually come up — each one a “unit test” you can reproduce in the overtime calculator.
1. Basic hourly
$20/hour, 45 hours worked, federal rules.
- Regular: 40 × $20 = $800
- Overtime: 5 × $30 = $150
- Total: $950
2. With a non-discretionary bonus
$20/hour, 45 hours, plus a $100 production bonus.
- Straight-time + bonus: $900 + $100 = $1,000
- Regular rate: $1,000 ÷ 45 = $22.22
- Overtime premium: 0.5 × $22.22 × 5 = $55.56
- Total: $1,055.56
The bonus raised the overtime owed — that’s the law working as intended.
3. Two pay rates (blended)
30 hours at $20 + 20 hours at $15 = 50 hours.
- Straight time: $600 + $300 = $900
- Regular (blended) rate: $900 ÷ 50 = $18.00
- Overtime premium: 0.5 × $18 × 10 = $90
- Total: $990
Try it in the blended overtime calculator.
4. Salaried (non-exempt)
$52,000 salary, 45 hours one week.
- Regular rate: ($52,000 ÷ 52) ÷ 40 = $25.00
- Salary covers 40 hours: $1,000
- Overtime: 5 × $37.50 = $187.50
- Total: $1,187.50
5. California daily overtime
A 12-hour day at $20/hour (California rules).
- Regular: 8 × $20 = $160
- Overtime: 4 × $30 = $120 (hours 9–12 at 1.5×)
- Day total: $280
A 13th hour would add 1 × $40 (double time). See the California overtime calculator.
6. No Tax on Overtime deduction
Suppose your overtime premium adds up to $15,000 over the year, filing single, 22% marginal rate, income under $150,000.
- Qualified premium: $15,000 → capped at $12,500 (single limit)
- Estimated federal tax saved: $12,500 × 22% = $2,750
Note: you still owe Social Security and Medicare on the overtime, and possibly state tax. Run your own numbers in the No Tax on Overtime calculator.
Each example is gross pay before taxes (except #6, which is the tax deduction itself). Want the full week from clock-in/out times first? Total it in the time card calculator, then price the overtime here.