How is overtime pay calculated?
For a simple hourly scenario, overtime earnings equal the regular hourly rate multiplied by the overtime multiplier and the number of overtime hours.
What does federal law generally require?
For covered, nonexempt employees, the FLSA generally requires at least 1.5 times the regular rate for hours over 40 in a workweek. Exemptions and special work-period rules can apply.
What is the new federal overtime deduction?
Current IRS guidance says qualified overtime compensation for the deduction is the portion of FLSA-required overtime pay that exceeds the regular rate. With standard 1.5× overtime, that generally means the extra 0.5× premium portion, subject to eligibility rules, annual limits and income phaseouts.
Does this tool decide legal overtime eligibility?
No. Worker classification, the regular rate, includable bonuses, state law and exemptions can change the legal calculation. This tool is a straightforward earnings estimator.
Frequently asked questions
Sources and methodology
The calculator uses the current federal figures or official agency guidance described below where those rules apply. State-specific results should always be checked with the relevant state tax authority.