Wet Hands - BC Bookkeeping Tutorials|dwmbeancounter.com

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Wet Hands

Calculating Payroll > Employee Calculations
Wet Hands
Let's see if we need to pay our dishwasher any overtime. Our dishwasher is only paid $7.25 an hour (current minimum wage ) and worked 42 hours during the week. Since he worked over 40 hours we need to pay him for 2 hours at his overtime rate of pay.

  • Overtime Rate - Now let's calculate his overtime rate.
    Overtime Rate = 1.5 X Regular Rate
    Overtime Rate = 1.5 X $7.25
    Overtime Rate = $10.88

  • Earnings Calculation - Now all we need to do is calculate the regular and overtime earnings and we've got it made.
    Regular Earnings = Regular Hours X Regular Rate
    Regular Earnings = 40 hours X $7.25
    Regular Earnings = $290.00
Overtime Earnings = Overtime Hours X Overtime Rate
Overtime Earnings = 2 hours X $10.88
Overtime Earnings = $21.76
Total Earnings = Regular Earnings + Overtime Earnings

Total Earnings = $290.00 + 21.76

Total Earnings = $311.76

Total Earnings Paid For Week = $311.76
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