How to calculate overtime for salary employees

To do this divide the weekly salary by the number of hours you expect the employee to work. Then calculate their regular wages up to 40 hours. Next determine the overtime hourly rate, overtime is usually considered time-and-a-half. Finally, calculate the total wages.

The next method is utilized when you need to calculate overtime pay for a salary that covers all hours the employee has worked. First, calculate the regular hourly pay rate for the week, then divide this weekly salary by the total number of hours the employee has worked.

Next, calculate the overtime hourly rate, in this instance, it will be.5, instead of 1.5, because you have already accounted for the overtime hours once in the regular hourly rate. Then multiply the overtime hourly rate by the number of overtime hours the employee has worked.

Lastly, add the total regular wages and the overtime wages to get the total wage figure.