Calculating Overtime Based on Weekly Hours
Most employers calculate overtime on a weekly basis.
Example
- Regular schedule
- 40 hours/week
- Hours worked
- 50 hours
- Overtime
- 10 hours
- Hourly wage
- $25
- Overtime multiplier
- 1.5×
- Regular pay
- 40 × $25 = $1,000
- Overtime pay
- 10 × $37.50 = $375
This method is commonly used for weekly payroll processing.