Does overtime start after 8 hours a day?
Not under the federal rule this page uses. Federal overtime starts after 40 hours in the workweek. Some states add a daily rule. This calculator does not apply those daily rules.
Overtime calculator
Forty-five hours at $20 is $950.00. The last five hours are time and a half, and $50.00 of that is the extra half.
Gross pay
$950.00
Gross pay is $950.00. The FLSA half is $50.00.
How the total splits
- First 40 hours 84%
- Overtime pay 16%
Overtime starts after 40 hours in the workweek. Daily overtime is not calculated.
Breakdown
| Straight time | $800.00 |
|---|---|
| Overtime pay | $150.00 |
| FLSA half inside that pay | $50.00 |
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Regular = min(hours, 40) × rate. Overtime = hours over 40 × rate × 1.5.
The federal workweek
The Fair Labor Standards Act overtime premium starts after 40 hours in a workweek. Those hours are paid at one and one-half times the regular rate. This calculator uses one hourly rate for the week. It does not blend two rates, and it does not add a bonus into the regular rate.
Hours over 8 in a day, a seventh consecutive day, and double time are state or contract rules. They are not in this result. The premium line is the federal half on hours over 40, which is the piece the deduction page can use.
Worked examples
| Gross pay | $950.00 |
|---|---|
| FLSA half | $50.00 |
Common questions
Are salaried people included?
Only if they are non-exempt. An exempt salary does not produce this premium. The qualified-overtime page asks the exempt question before counting hours.
Is the whole overtime check deductible?
No. The deductible amount is the extra half on the hours over 40, then the annual cap and the income phase-out. Open the no-tax-on-overtime calculator for that tax result.
Sources
- 26 U.S.C. § 225: qualified overtime compensation — premium only, $12,500 / $25,000 joint cap, $100 phase-out per $1,000 of MAGI, joint-return rule, 2025–2028
- 26 U.S.C. § 224: qualified tips — $25,000 cap and the same MAGI phase-out
- IRS: Treasury, IRS provide guidance for individuals who received tips or overtime during tax year 2025 (FLSA premium, divide-by-3 example)
- IRS Notice 2025-69: qualified tips and qualified overtime compensation
- IRS FAQ: deduction for qualified overtime compensation
- IRS Form 1040-ES (2026): 2026 brackets, standard deduction, and the overtime and tips deduction reminders
- 29 U.S.C. § 207: FLSA overtime after 40 hours in a workweek, at one and one-half times the regular rate