Notbad Cook

Calculating Payroll > Employee Calculations

Notbad Cook

Notbad Cook, like Fat Chef, is also paid by the salary method and his weekly salary amount of $500.00 is also based on working up to 45 hours a week as agreed upon with Ma. If he works less than 45 he is also paid the same amount; however, since he is a nonexempt employee if he works over 40 hours during a pay week he must be paid overtime for all hours worked over 40.

Calculating his pay should be a breeze since his calculations are very similar to Fat Chef's. Good Chef however does not receive a bonus.

Straight Time Rate - In order to calculate what to pay him for any overtime, we first need to calculate what his straight time rate of pay per hour is. We do this by dividing his weekly salary amount of $500 a week by the number of hours his pay is based upon.

Straight Time Rate Per Hour = $500 / 45 hours
Straight Time Rate Per Hour = $11.11 per hour

Overtime Rate - Our next step is to calculate what his overtime rate of pay per hour is. Ma pays 1/1/2 times the straight time rate for overtime hours. So all we need to do is multiply his straight time rate per hour time 1.5.

Overtime Rate Per Hour = Straight Time Rate Per Hour X 1.5
Overtime Rate Per Hour = $ 11.11 x 1.5
Overtime Rate Per Hour = $16.67

The overtime rate per hour is actually made up of the straight time rate of $11.11 plus what is often called the premium portion of $5.56. All we're saying here is that Fat Chef makes an additional $5.56 an hour when he works overtime. A simple way of determining the premium portion is subtracting the Straight Time Rate Per Hour from the Overtime Rate Per Hour.

Premium Rate Per Hour = Overtime Rate Per Hour - Straight Time Rate Per Hour
Premium Rate Per Hour = $16.67 - 11.11
Premium Rate Per Hour = $5.56

Actual Hours Worked - Next we need to get and review Notbad Cook's actually hours worked for each week of his two week payroll period.
Week 1 - 38 hours worked
Week 2 - 50 hours worked

Week 1 Calculation:
Base Salary = $500.00

Overtime Pay
No Hours Worked over 40 -No Overtime Hours

No Additional Overtime Pay

Total Regular Earnings Week 1
Total Week 1 Pay = Base Salary + Overtime
Total Week 1 Pay = $500.00 + 0

Total Week 1 Pay = $500.00

Did you notice that although Notbad Cook only actually worked 38 hours during week 1 that he was paid his full weekly salary of $500.00. ?

Week 2 Calculation:
Base Salary = $500.00

Overtime Pay
Overtime Hours = Total Hours Worked - 40
Overtime Hours = 50 -40
Overtime Hours = 10

Overtime Calculation in Good Cook's case will involve two calculations. One for the overtime hours worked up to and including 45 hours and another for the overtime hours worked over 45 hours. Can you tell me why ? Because Good Cook's salary is based on working a 45 hour work week. In effect his salary already includes the straight time rate for working up to 45 hours.

Additional Overtime Pay For Hours From 40 - 45 = Overtime Hours x Overtime Premium
Additional Overtime Pay For Hours From 40 - 45 = 5 x $5.56
Additional Overtime Pay For Hours From 40 - 45 = $27.80

Additional Overtime Pay For Hours From 45 - 50 = Overtime Hours x Full Overtime Rate
Additional Overtime Pay For Hours From 45 - 50 = 5 x $16.67
Additional Overtime Pay For Hours From 45 - 50 = $83.35

Total Overtime Pay = Pay For Hours From 40 - 45 + Pay For Hours From 45 - 50
Total Overtime Pay = $27.80 + 83.35
Total Overtime Pay = $111.15

Total Earnings Week 2
Total Week 2 Pay = Base Salary + Overtime
Total Week 2 Pay = $500.00 + 111.15

Total Week 2 Pay = $611.15

Total Earnings For 2 Week Pay Period
Total Earnings = Week 1 + Week 2
Total Earnings = $500.00 + 611.15
Total Earnings = $1111.15
or Total Earnings = Salary (2 - Weeks) + Overtime (2 - Weeks)
Total Earnings = $1000 + 111.15

Total Earnings = $1111.15

Total Pay For 2 - Week Period - $1111.15