How payroll hours are calculated
- Add up the hours from the time cards for each workweek and convert them to decimal hours (7:45 = 7.75). The decimal hours calculator converts a whole list.
- In each week, hours up to 40 are regular, hours over 40 are overtime.
- Multiply regular hours by the rate and overtime hours by 1.5 × the rate.
- Add paid time off at the regular rate, double time and other pay.
Example: biweekly payroll
$18 an hour, 44 hours in week 1 and 38 in week 2. Week 1: 40 regular + 4 overtime. Week 2: 38 regular. Regular pay 78 × $18 = $1,404, overtime 4 × $27 = $108, $1,512 gross. Averaging the two weeks (41 hours each) would wrongly give 2 overtime hours.
Need the hours themselves? Fill in a timesheet first.
Full-time hours and pay by pay period
40 hours a week, 2,080 hours a year. Gross pay at $20 an hour:
| Pay period | Paychecks a year | Hours per paycheck | Gross at $20/h |
|---|---|---|---|
| Weekly | 52 | 40.00 | $800.00 |
| Biweekly | 26 | 80.00 | $1,600.00 |
| Semimonthly | 24 | 86.67 | $1,733.33 |
| Monthly | 12 | 173.33 | $3,466.67 |
| Year | – | 2,080.00 | $41,600.00 |
Payroll hours questions
How do I calculate payroll hours?
Add up the hours worked in each workweek and convert them to decimal (7:45 is 7.75). Hours up to 40 in a week are regular; hours over 40 are overtime at 1.5 times the rate. Multiply each by its rate and add paid time off and other pay. That is the gross pay for the period.
Does paid time off count toward overtime?
Not under federal law. Overtime is based on hours actually worked, so vacation, holiday and sick hours are paid at the regular rate but do not push the week over 40 hours. A union contract or company policy can be more generous.
How do I calculate a biweekly paycheck from hours?
Work out each of the two weeks separately: regular hours up to 40, overtime above 40. Example at $18 an hour: 44 hours and 38 hours give 78 regular hours (78 × $18 = $1,404) and 4 overtime hours (4 × $27 = $108), so $1,512 gross for the two weeks.
What is the difference between gross pay and net pay?
Gross pay is what you earn before anything is taken out: hours × rate, overtime, PTO and bonuses. Net pay, or take-home pay, is what is left after federal and state income tax, Social Security and Medicare (7.65% together) and deductions such as health insurance or a 401(k).
How are hours counted for semimonthly or monthly pay?
Overtime is still counted per 7-day workweek, even when pay periods are the 1st–15th and 16th–end of the month. Work out overtime week by week from the time cards, then enter the regular and overtime hours that fall in the pay period.