How is overtime calculated for hourly workers?

1.5x the regular rate for hours above 40 in a workweek (federal FLSA). Some states (CA, NV, AK, CO) have stricter daily-OT rules.

What about shift differentials?

Differentials are part of the regular rate for FLSA OT calculations. Overtime is 1.5x (base + differential), not 1.5x base alone.

Do hourly workers get pre-tax 401(k) and benefits?

Yes, eligibility depends on plan rules, not on hourly vs salaried.

Hourly Paycheck Calculator (US)

Hourly paycheck math: regular hours times rate, plus overtime hours times 1.5x rate, minus federal income tax, FICA, state and local tax, and any voluntary deductions. PayslipIQ runs all of it.

In short

An hourly paycheck is your regular hours times your hourly rate, plus overtime — usually 1.5× the rate for hours over 40 in a workweek under the federal FLSA — minus federal income tax, FICA (7.65%), and any state or local tax. Pre-tax benefits like a 401(k) or health insurance reduce it further. These are estimates; your actual check depends on your W-4 and employer settings.

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

The math

Regular pay = regular hours × hourly rate

Overtime pay = overtime hours × 1.5 × hourly rate

Gross = regular + overtime + any differentials, holiday pay, sick pay, PTO

From there, federal income tax (per W-4 + IRS Pub 15-T), FICA (6.2 + 1.45 percent), state tax (where applicable), local tax, pre-tax and post-tax deductions.

Federal FLSA overtime threshold

1.5x for hours above 40 in a workweek. Non-exempt employees only.

State daily-overtime overlays

California, Alaska, Nevada, Colorado have stricter daily-OT rules. See the overtime page.

Run the calculator

Use the paycheck calculator, set frequency to Weekly or Bi-weekly, and enter (hours × rate) as your gross. The tool handles the rest.

Tipped workers

Federal tipped minimum wage is $2.13/hour. Employer must top up so tips bring you to at least the regular minimum across the workweek. Several states do not allow this tip credit. See the tipped worker guide.

Common hourly-paycheck issues

Missing overtime on a 40+ hour workweek (FLSA non-exempt)
Differentials (shift, weekend) not factored into overtime regular rate
Tipped minimum wage not topped up to federal/state minimum
Comp time offered in lieu of OT (illegal in most private-sector cases)

Frequently asked questions

How is overtime calculated for hourly workers?: 1.5x the regular rate for hours above 40 in a workweek (federal FLSA). Some states (CA, NV, AK, CO) have stricter daily-OT rules.
What about shift differentials?: Differentials are part of the regular rate for FLSA OT calculations. Overtime is 1.5x (base + differential), not 1.5x base alone.
Do hourly workers get pre-tax 401(k) and benefits?: Yes, eligibility depends on plan rules, not on hourly vs salaried.