Certain salaried employees may still earn overtime, which is based on an hourly rate calculated from the annual salary. However, you can use a biweekly salary to determine your hourly rate, which is useful when comparing job pay. That hourly rate is vitally important in calculating your overtime rate as well as the total amount of money you will earn from the overtime for that paycheck.
Instructions
1. Determine your hourly rate. Take your biweekly gross salary (your pay before taxes are taken out) and divide it by 80, which is two weeks of full-time work. For example, your biweekly gross pay might be $1,923.08. Divide 1,923.08 by 80, which equals an hourly rate of $24.04.
2. Multiply the dividend from Step 1 by 1.5 to equal your hourly overtime rate. To continue with the previous example, $24.04 multiplied by 1.5 is $36.06.
3. Multiply your hourly overtime rate by the number of overtime hours worked during the pay period to determine how much overtime you earned this paycheck. Ten hours of overtime worked in a pay period at the hourly overtime rate of $36.06 equals $360.60, for example.
Tags: hourly rate, overtime rate, your hourly, hourly overtime, hourly overtime rate, biweekly gross