Payroll Formula:
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The Payroll Calculator computes total pay based on regular hours, overtime hours, and hourly rate. It accounts for standard pay (regular hours × rate) and overtime pay (overtime hours × rate × 1.5).
The calculator uses the payroll equation:
Where:
Explanation: The equation calculates regular pay and adds overtime pay at 1.5 times the normal rate.
Details: Correct payroll calculation ensures employees are paid fairly and employers comply with labor laws regarding overtime compensation.
Tips: Enter regular hours, overtime hours, and hourly rate. All values must be non-negative numbers.
Q1: What's the standard overtime rate?
A: In most jurisdictions, overtime is paid at 1.5 times the regular rate for hours worked beyond standard hours (typically 40 hours/week).
Q2: Are there different overtime multipliers?
A: Some situations may require double time (2× rate) for holidays or excessive overtime, but 1.5× is standard.
Q3: How are partial hours handled?
A: The calculator accepts decimal hours (e.g., 1.5 hours) for precise calculation.
Q4: Does this include deductions?
A: No, this calculates gross pay before taxes and other deductions.
Q5: Is this calculator suitable for salaried employees?
A: No, this is designed for hourly workers. Salaried employees typically don't receive overtime pay.