Formula
Regular pay uses the rate once. Overtime pay uses the rate times the multiplier:
Total pay = regular hours × rate + overtime hours × rate × multiplier
A multiplier of 1.5 is time and a half. A multiplier of 1 pays overtime at the regular rate.
Assumptions
- The multiplier applies to every overtime hour.
- The rate is the straight-time hourly rate.
Worked example
40 hours at $20.00, plus 8 hours at 1.5 times that rate, pays $1,040.00.
Input definitions
- Overtime hours
- Hours paid at the multiplier. Zero is allowed.
- Overtime multiplier
- How many times the hourly rate those hours earn, from 1 to 3.
Limitations
This is not a labor-law ruling. It does not know a weekly threshold, a daily threshold, or a jurisdiction.
Questions
Does 40 hours automatically become overtime?
No. You type which hours are regular and which are overtime.
Can I model double time?
Yes. Set the multiplier to 2.