Category Archives: Bookkeeping

Content How Do I Calculate Overtime? Why Is Calculating Overtime Important? Get Exclusive Insights, Invites and More With Our Weekly HR Newsletter Overtime Formula Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned. It requires that eligible workers who work more than a 40-hour week be paid 1.5 times their base pay rate for every hour worked over their usual amount. This doesn’t necessarily apply to work performed on nights, weekends, and holidays, unless mentioned in the employment agreement—or if law firm bookkeeping those hours are also in excess of 40 for that week. Certain states may require that employers pay an overtime rate on some holidays, however. Overtime payments made to nonexempt employees are a type of payroll record and, thus, must be retained for at least three years in accordance with…

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