This is the minimum overtime rate required by federal law for hours worked beyond 40 in a week. In the public sector, employees are given 13 annual national holidays off, with pay. Every company can set itsown holiday policy, but there are some common trends. Although there’s no federal requirement to offer overtime pay on national holidays, most private sectorcompanies either give their employees time and a half, or the day off with pay. Wouldn’t life be easier if employers offered double pay for overtime and holidays?

Does time and a half apply to holiday pay?

If you are paid $18 per hour, you will make $27 per hour when being paid time and what is time and a half for $22 an hour a half ($18 × 1.5) and $36 when beingpaid double time. This article is intended to be used as a starting point in time and a half and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services. This section addresses frequently asked questions about time and a half pay, covering eligibility, calculation methods, and legal considerations to provide clear and concise information.

Who qualifies for time and a half pay?

Double overtime pay is like QuickBooks an extra reward for employees who put in additional hours or work on holidays (personal holidays or public holidays). The rules fordouble-time pay can differ depending on the job, the company, and where you live. If you would like the calculator to calculate how much you would earn annually in overtime wages if you worked a given number of overtime hours each pay period, select your pay period.

Guide to Calculating Time and a Half for Hourly Employees

• So, in our first example Judith would earn an additional $300 in overtime pay for that week, which should be added to her regular pay.
• The double pay rate actually doubles the standard rate of the employees.
• Since they receive a fixed amount, calculating time and a half for salaried employees is slightly different.
• Even though this formula isn’t particularly complicated, let’s put it to the test with a fictional employee.
• Generally speaking, most employees eligible for overtime are paid hourly, but there are some cases when a salaried employee may qualify for overtime pay (which we’ll talk a bit more about later in this article).
• The FLSA defines a workweek as any fixed 168-hour period that you designate.

Now multiply the number of overtime hours by $47.60 to get the amount of overtime. Add that to the regular hourly rate to get the employee’s total gross weekly earnings. As per the FLSA guidelines, all hourly and nonexempt employees must receive overtime compensation for the extra hours worked outside the defined 40-hour workweek.

Automating Your Time and Half Calculations With a Time Tracking App

As we mentioned, it takes a little bit more math to calculate overtime pay for your salaried, non-exempt employees. To add up the numbers, we’ll figure out the pay for Jim, a salaried employee who worked 47 hours (putting in seven extra hours) the previous week and who earns $32,000 a year. To determine his overtime rate, we’ll first need to divide his annual salary by 52 to determine his weekly pay rate.

Step 3: Determine the Time and a Half Rate

• Here is an example of calculating overtime for Tim – a salaried white collar earning $680 per week.
• This is why one of the best investment decisions for your company is a reliable time tracking app.
• Time and a half calculator is a tool for employees to calculate their wages and overtime pay.
• Now, let’s apply the steps to a hypothetical scenario involving a salaried employee (earning overtime) at a company.
• For this full-time employee who earns $15 per hour, their time and a half rate is $22.50 per hour, and they earned $337.50 for working 10 hours of overtime.
• In some circumstances, such as California’s working laws, workers are entitled to double time if they work more than 12 hours in a single day or eight hours on the seventh consecutive day of a single work week.

When you pay your employees time and a half, they are being paid 50% more than their regular pay rate. Only non-exempt employees are eligible for time and a half pay according to the Fair Labor Standards Act (FLSA), which is the federal law that sets all requirements for overtime pay and eligibility. Time and a half refers to your need to pay the existing hourly wage plus 50% more for every hour your employee works overtime on top of the employee’s standard hourly rate. Keep in mind that your payment method and timesheet are not relevant, and the overtime pay is always calculated on a weekly basis even if you pay your workers bi-weekly.

Instead, you’re more likely to find yourselfnavigating the confusing world real estate cash flow of time and a half – that is to say, pay that’s 50% higher than your standard rate. Employers who fail to pay employees for overtime work may be liable for back hourly wages, liquidated damages, and possibly legal expenses. Furthermore, the Department of Labor (DOL) has the authority to levy fines for repeated or willful infractions.

Now you will calculate the total overtime wages earned during the pay period. For this calculation, you must multiply the overtime hours by the time and the half-pay rate you calculated in Step 2. Over 70 million people work hourly, and it’s likely that some of them work extra shifts (and earn overtime pay) from time to time. That’s why understanding the ins and outs of time and a half, as well as how to calculate it, is important.