Identify your overtime earnings for the pay period
Separate overtime pay from regular wages on your pay stub
Apply the applicable federal income tax withholding rate to the overtime amount
Apply Social Security tax at 6.2% up to the annual wage base limit
Apply Medicare tax at 1.45% to all overtime earnings
Apply Additional Medicare tax at 0.9% if your wages exceed the annual threshold
Apply any state income tax withholding rules for your location
Apply any local income tax withholding rules if applicable
Add all applicable payroll taxes withheld from the overtime amount
Subtract pre-tax deductions that reduce taxable wages if they apply to overtime
Use your employer’s payroll formula or tax tables for exact withholding
Compare the overtime gross pay to the net overtime after taxes and deductions
Use your year-to-date wages to check whether tax thresholds have been reached
Review your pay stub to confirm the overtime tax deduction amount