How To Calculate Overtime?

Determine the regular hourly rate

Identify the overtime threshold set by law or company policy

Calculate total hours worked in the pay period

Subtract regular hours from total hours to find overtime hours

Multiply overtime hours by the overtime rate

Add regular pay and overtime pay to get total pay

Use the applicable overtime multiplier, such as 1.5 times the regular rate

Include any required adjustments for bonuses, commissions, or different shift rates if applicable

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