How To Calculate Time And A Half Pay?
Time and a half, also known as time-and-one-half is a term used in combination with overtime pay when an employ gets 50% higher pay rate for hours in excess of 40 hours in a week. The term Half is also known as the overtime premium. For example, if your earning is required $8 per hours to work 41 hours this week. You will get $320 for the first 40 hours($8 times 40) plus $12 (150% of $8) for the 41st hours, for a total of $332. This total amount can also be calculated as 41 hours times the straight-time rate of $8=$328 plus the $4 overtime premium.
In simpler words, Employees will work their required hours and they will get paid according to their regular pay routine. Sometimes, employees work more than one time. If this happens, then you have to pay the employee a higher rate of pay and it is called time and a half.
How To Time And Half Law
Federal and State law states that every employer has to be paid if he/she does an overtime work. The overtime premium is 50% of the employee's usual hourly wage. This means that if you work for overtime, then you must be paid "Time and a Half", which is your hourly wage plus the 50% overtime premium, for every timely hour worked.
You don't need to select which employees are exempt from overtime wages and which are not. The FLSA determines that for you. An employee must meet the below requirement to be considered as an exempt.
- You must pay the employee his salary
- You must pay the employee at least $23,660 per year ($455 per week).
- The employee must have executive, administrative, or professional duties.
One thing I would like to clear out is that it is a very common misconception prevailing that simply paying a salary will exempt you from overtime wages. This is not true. You can still have salaried non-exempt employees. The employee must perform the qualifying duties to be considered as exempt.
There are also some additional things that might exempt an employee. For example, there are computer employees. You should check out FLSA list of exemption for a full list of things that make an employee exempt.
Employees who do not qualify for exemption are called nonexempt. If a nonexempt employee works overtime, they must be paid time and a half.
What Is Time And Half Holidays?
Time and Half Holiday means if you work more than 40 hours during the week of Holidays then you are given the Time and Half Pay, it is calculated as your hourly wages plus 50% for the hours worked over 40 hours.
How to calculate time and a half
The calculation of time and a half is not that much difficult, first of all, I should tell you what time and a half means, Time and Half means if a nonexempt employee works overtime hours, then he/she must be paid the normal earnings plus the overtime earnings. That's it!
For example, if you are a nonexempt employee who is earning $10 per hour. The last workweek, you worked 50 hours, so it means you worked for 40 regular hours and 10 overtime hours.
Follow the steps below now to calculate the Time and Half Pay.
First, calculate your regular earnings.
E.g: 40 regular hours X $10 = $400
You earned $400 in normal wages.
Now you have to calculate overtime wages, you should keep in mind that the overtime rate of pay is one and a half time the regular rate of the pay.
E.g: $10 X 1.5 = $15 (overtime hourly rate of pay)
Then multiply the overtime rate by the number of overtime hours.
E.g:$15 X 10 overtime hours = $150
The employee earned $150 in overtime wages.
To get your total gross wages, add together the regular wages and overtime wages.
e.g:$400 + $150 = $550
In this way, you can calculate the Time and Half-pay of the employee.
What is Double-time pay
Double time pay simply means when an employee pays double-time to their work on holidays or on Sundays. And in this way, they are paid extra money. In some cases, the employers pay double time for overtime hours instead of the lower time and one-half rate which is required by the federal law.
How To Calculate Double Time Pay.
Follow the steps below to find Double Time Pay:
First of all, find out how many hours are subject to double-time wages. ...
Now Double the employee's regular hourly rate.
Multiply the double-time hours by the double-time rate.
You would add the total double-time wages to your regular wages for the pay period.
What is Time in a Half of 15.00 and 14.00 an hour?
When you work for overtime pay, the rate cannot be less than one and one-half times( Also called Time and a Half) to your regular rate of pay. In simple words, if your hourly rate of pay is $10/hour, the overtime rate would be $15/hour.
In 14.00 an hour, you just multiply the standard wages time 1.5. For example, the time and a half for $14 an hour are $21 per hour. Half of 14 is 7, so add the half to the regular hourly wage and you will get the time and half of 14.00 in an hour.