Weekly vs. daily overtime
The federal rule is weekly: 1.5x the regular rate for every hour over 40 in a workweek. With weekly totals only, the calculator puts hours over 40 at 1.5x. You can also add extra overtime hours at 2x if your employer pays double time.
Alaska: Overtime at 1.5x for hours over 8 in a day (Alaska Stat. 23.10.060). Alaska overtime calculator →
California: 1.5x for hours over 8 up to and including 12 in a workday; 2x for hours over 12 in a workday; on the seventh consecutive day of work in a workweek, 1.5x for the first 8 hours and 2x after 8; 1.5x for hours over 40 in a workweek. California overtime calculator →
Nevada: Overtime at 1.5x for hours over 8 in a 24-hour period for employees earning under $18/hr (1.5x the minimum wage); NRS 608.018. Nevada overtime calculator →
Every other state uses the federal weekly rule in this calculator. Pick yours from the dropdown or the state list.
Federal withholding uses the standard IRS Publication 15-T method. It doesn't apply any annual deduction for overtime pay you might claim when you file your return.
Overtime FAQs
- How is overtime pay calculated?
- Under the federal Fair Labor Standards Act, non-exempt employees earn at least 1.5x their regular rate for hours over 40 in a workweek. Hours can't be averaged across weeks.
- Is overtime taxed at a higher rate?
- No. Overtime is ordinary wages. Withholding on a paycheck with overtime is figured on that paycheck annualized, so a big overtime check can look more heavily withheld. The tax rates themselves are the same.
- Which states require daily overtime?
- This calculator applies daily overtime rules for Alaska, California, Nevada.
- Does overtime count for Social Security and Medicare?
- Yes. Overtime is subject to Social Security (6.2% up to the wage base) and Medicare (1.4500000000000002%).