Payroll Clerk how-to

How to Calculate Overtime Pay Correctly

Overtime errors break the law.

Updated By the Career Education Institute Curriculum Team
Quick answer

Overtime errors break the law. In short: confirm; total; find, then complete the remaining steps below.

Step by step

  1. Confirm non-exempt status.

  2. Total hours worked.

  3. Find hours over 40.

  4. Include bonuses in the regular rate.

  5. Pay 1.5 times the rate.

  6. Check state rules.

Safety reminders for payroll clerks

  • Protect pay and Social Security data
  • Follow wage and hour laws
  • Prevent payroll fraud
  • Use secure systems

Gross pay · Net pay · Deduction · FICA · W-2 · W-4: see the full payroll clerk glossary.

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