When you pay your employees time and a half, they are being paid 50% more than their regular pay rate. Only non-exempt employees are eligible for time and a half pay according to the Fair Labor Standards Act (FLSA), 22 time and a half which is the federal law that sets all requirements for overtime pay and eligibility. Non-exempt employees under the Fair Labor Standards Act (FLSA) are typically eligible for time and a half pay for all hours worked over 40 in a workweek. This includes hourly and some salaried employees who meet certain criteria regarding their job duties and salary level. Exempt employees, generally those in executive, professional, or certain administrative roles who earn above a specific salary threshold, are not eligible for overtime pay. The time and a half calculator is flexible to include all types of custom overtime rates and hours.

Frequently asked questions employers have about time and a half pay

Although this formula isn’t particularly complicated, let’s test it with a fictional employee. They also have a PDF download of the guide if you want to save a copy for your records. https://malewabunducamp.co.ke/what-is-fp-a-and-why-every-business-needs-it-today/ With a better understanding of the math behind calculating time and a half pay under our belts, let’s go over who qualifies and who does not. While many calculators on 123Calculate.com are made to be generally applicable for worldwide use, some are for specific countries only. 123Calculate.com’s single objective is to be the one destination to visit for just about anything to calculate. To achieve this objective 123Calculate.com display a vast array of broad, fast as well as easy online calculators free of charge, including this Time And A Half Calculator.

• We connect talented professionals with top employers in restaurants, hotels, and hospitality venues.
• The good news is that calculating overtime pay is simple when you follow a few basic steps.
• Oyster’s intuitive software handles complex payroll calculations, ensuring accuracy, efficiency, and compliance.
• This means that for every hour worked at time and a half, you earn $30 instead of your usual $20.
• This means that 1.5 times the regular rateis a legal minimum in all states, and some states can have even higher rates and additional conditions under which overtime rates apply.
• If you know their annual salary, divide this amount by the number of weeks they work in a year (usually 52).
• So, this person would earn a total of $1,750 for the week where they work 20 hours of overtime at a time-and-a-half pay rate.

Who Is Eligible for Time and a Half Pay?

OysterLink provides paycheck calculators for each state in the U.S., taking into consideration state-specific tax laws and deductions. Add, subtract, multiply and divide time in days, hours, minutes, and seconds with this easy to use time calculator. Let’s say Justin earns $18 an hour and worked 45 hours in one week. Calculate time and a half salary rate of an employee if the regular salary per week of the employee is $400 per week.

Which holidays are eligible for time and a half pay?

It can get a little tricky if, during the regular workweek, an employee is eligible for both overtime and holiday pay. In this case, overtime should be calculated based on their regular hourly wage only — with holiday pay left out of the equation. To start, time and a half pay, also known as overtime pay, is always based (and calculated) using an eligible employee’s hourly pay rate.

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Add this bonus to their total earnings before overtime adjustment. If you have hourly workers that are putting in extra hours during the holiday season, you may be wondering how the numbers work out. If you’ve promised in writing that employees will get time and a half (or double time!) for working on public holidays, then yes, you must honour that. The primary reason to accurately calculate hourly overtime pay is to comply with the FLSA and any relevant state and local law.

Basic Overtime Calculations

We are not liable for any damage or loss arising from the use of the information on our website. Calculating time and a half manually can be a pain, especially when you’re juggling rotas, shift swaps, last-minute cover, and payroll deadlines. This one depends on where your business is based and how your employees are classified. In this guide, we break down how time and a half pay works, who qualifies, and how to calculate it without losing your mind (or your payroll records). This comes out to about $684 per week or $17.10 per hour with a 40-hour weekly online bookkeeping schedule. Triple time is much less common but may occur for if you work extremely long shifts or are in a specialized industry or have a specific union agreement.

Step 4. Calculate the total pay

For going beyond the call of duty, this hourly employee has earned $951.28 this week. Keep in mind that there are other forms of compensation (e.g., shift differential pay) that also need to be included when calculating time-and-a-half pay. Divide days, hours, minutes and seconds by a divisor, working from smallest unit of time to largest. Multiply days, hours, minutes and seconds by a multiple, working from smallest unit of time to largest. Subtract days, hours, minutes and seconds working from smallest unit of time to largest.