Sally worked 48 hours this week. Her overtime rate is 1.5 times the regular rate. When calculating gross pay with overtime, there are 2 options:
1. (total regular hours x hourly rate) + (overtime hours x overtime rate) = gross pay
2. (total number of hours worked x the hourly rate) + (hours over 40 x 0.5 the hourly rate)
Equation 1
(40 hr. * 25.00) + (8 * 25.00 *1.5) =
(1000) + (200) * 1.5 =
$1000 + $300= $1300
Therefore
Gross Pay is $1300 for Sally
Equation 2
(48 hr. * 25.00) + (8 * 25 * 0.5) =
(1200) + (100) = $1300
Gross Pay is $1300 for Sally
Created on May 11, 2014
Form (rr15a) Code:3301627005-GA