This overtime calculator calculates your total overtime remuneration and the OT rate, together with the steady pay by taking account of the amount of hours worked. In instance you’re not familiar with the term, overtime (often referred to as “OT”) is a term usually used to describe the excess of hours worked beyond 40 hours per week.
Your employer is requisite by federal law (Fair Labor Standards Act) to pay time and a half wages (regular hourly rate x 1.5) for all hours worked yonder 40 hours per week.
So if your regular hourly rate is $10.00, and you work 50 hours throughout a given workweek, you will end up receiving $120.00 in overtime pays ($10.00 x 1.5 = $15.00 x 10 OT hours = $150.00) for that week — which is in addition to the 40 hours of regular wages.
HOW DOES THIS OVERTIME CALCULATOR WORK?
This is an application considered to help you keep track of your overtime earnings or evaluation your OT rate by seeing the following details:
- Regular pay rate and the number of standard hours worked (optional).
- Overtime multiplier which is obtainable by the employer. It might be any of these values:
– One time and a half from steady pay rate (1.5) which is most likely as many employers practice this policy;
– Double time which means two times of your standard rate (2);
– Double time and a half which means your regular rate multiplied by 2.5;
– Triple time which specifies that your regular rate multiplied by 3;
– Triple time and a half which means your standard amount is multiplied by 3.5;
– Or can be a expand time which is usual wage rate multiplied by 4, or even a customizable rate by case (Other).
- Overtime periods worked and pay period (both optional).
The procedure behind this overtime calculator is established on these formulas:
- Overtime pay rate: X = RHPR * OVTM
- Overtime pay per period: Y = X * OVWK
- Overtime pay per year: Z = Y *PAPR
- Regular pay per period: M = RHPR * RHWK
- Regular pay per year: N = M * PAPR
- Total pay per period: O = Y + M
- Total pay per year: P = Z + N
RHPR = Regular hourly pay rate
RHWK = Regular hours worked
OVTM = Overtime multiplier
OVWK = Overtime hours worked
PAPR = Pay period (52 for Weekly, 26 for Bi-Weekly or else 12 for Monthly)
WHAT IS OVERTIME RATE?
Overtime Frequently abbreviated as OT, this is a term that describes the extra hours worked in surplus to the official limit of 40 hours per week. As it is considered work in excess, dictated by the federal law through the Fair Labor Standards Act or FLSA. This is stated as a hourly minimum of at least one and one half times the standard wage.
For example in case the hourly rate is $10.00 and someone works 4 extra hours over the standard time of 8 hours a day, his daily wage will be:
Regular : $10.00 * 8 = $80.00
Overtime: $10.00*1.5*4 = $15.00 * 4 = $60.00
Daily wage: $80.00 + $60.00 = $140.00
THE OVERTIME FORMULA:
The basic overtime formula is (HOURLY RATE) X (OVERTIME MULTIPLIER) X (NUMBERS OF OVERTIME HOURS WORKED IN A PARTICULAR WEEK).
The overtime calculator uses the following formulae:
Regular Pay per Period (RPP) = Regular Hourly Pay Rate × Standard Work Week
Overtime Pay Rate (OPR) = Regular Hourly Pay Rate × Overtime Multiplier
Overtime Pay per Period (OPP) = OTR × Overtime Hours per Pay Period
Total Pay per Period (TPP) = RP + OP
Regular Pay per Year (RPY) = RP × Pay Period
Overtime Pay per Year (OPY) = OP × Pay Period
Total Pay per Year (TPY) = RY + OY
Wherever: Pay Period = 12 for Monthly, 24 for Semi-Monthly, 26 for Bi-Weekly, 52 for Weekly.
EXEMPTIONS FROM OVERTIME PAY:
Overtime laws require employers to pay their workers a rate that is more than the standard wage for regular hours. As declared above, the typical edge in most countries (including the U.S.) is 40 work hours a week. Whatever the limit is (some laws contain other approach), the employer should pay back each hour exceeding the normal approach.
Conversely, in the U.S., according to the Fair Labor Standards Act (FLSA), certain jobs are excluded from overtime compensation requirements. They are called exempt, and in these circumstances, employers are not obligated to wage them for overtime. Accordingly, employees who are normally adequate for overtime compensation are denoted to as non-exempt employees. In addition to excluding specific workers from overtime rules, some overtime laws slope certain industries where employers are exempt from overtime requirements.