Overtime pay

What is overtime pay?

Overtime is paid for any hour an employee works beyond an 8-hour workday or a 40-hour work week. Employers must pay hourly employees at least 1.5 times their regular pay rate for every overtime hour worked.

For example, let’s say an employee works 50 hours during a work week. When you create the paycheck, you enter 40 regular hours worked and 10 overtime hours worked. We’ll do the math and make sure the overtime is calculated correctly on the employee’s paycheck.

For more information about overtime laws, check the Work Hours: Overtime (United States Department of Labor) website.

To add an overtime pay column for an employee:

1. In the left navigation bar, click Employees.
2. Click an employee's name, and then click Edit employee.
3. In the How much do you pay this employee section, click Add additional pay types.
4. Select the Overtime Pay checkbox.
   
5. Click Done.

The next time you create a paycheck for this employee, Overtime Pay appears in the Pay column. Make sure you repeat these steps for any existing employees who receive overtime pay.

See also

• Pay types overview
• Double time
• More than one hourly pay rate
• Payroll topics

Still stuck? Contact us

©2016 Intuit Inc. All rights reserved. Trademarks.