Overtime pay is the additional piece of pay and the basic pay you get for working above and beyond your regular duties in a given period. Overtime is usually paid at 1 ½ time the hourly rate or more than the ordinary rate. Overtime premiums are paid due to an employee being asked to work for some specific hours beyond his regular working hours. Overtime wages can be calculated in several methods. You must be aware of your employee’s salary and how it is computed before you can calculate their overtime wages to avoid disputes or problems in the future.

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