Gross Pay Calculator
- Regular pay
- Overtime
Gross pay is before any tax or deductions. Net (take-home) pay is lower.
How the gross pay calculation works
Hourly: regular hours × rate
40 hours at $20 is $800.
Add overtime at the overtime rate
Federal law (FLSA) requires at least 1.5× the regular rate for hours over 40 in a workweek. 5 overtime hours at 1.5 × $20 = $30 is $150, so $950 so far.
Salary: divide by the pay periods in a year
$60,000 paid every two weeks is $60,000 ÷ 26 = $2,307.69 per paycheck. Weekly it is $1,153.85, twice a month $2,500 and monthly $5,000.
Add bonuses, commission and tips
These are part of gross pay. Gross pay is the figure before income tax, FICA and benefit deductions.
Worked example. An hourly worker at $20 with 40 regular hours and 5 overtime hours at time and a half earns $800 + $150 = $950 gross for the week.
Gross Pay FAQ
What is gross pay?
Gross pay (gross wages) is everything an employee earns in a pay period before any taxes or deductions: regular wages or salary, overtime, bonuses, commission and reported tips. It is the top line on a pay stub.
How do I calculate gross pay for hourly employees?
Multiply regular hours by the hourly rate, add overtime hours times the overtime rate, then add any bonus or tips.
How do I calculate gross pay from a salary?
Divide the annual salary by the number of pay periods: 52 weekly, 26 biweekly, 24 semi-monthly or 12 monthly.
What is the difference between gross pay and net pay?
Gross pay is earnings before anything is taken out. Net pay (take-home pay) is gross pay minus income tax withholding, Social Security, Medicare and deductions such as health premiums or 401(k) contributions. Use the take-home pay calculator to go from gross to net.
Are tips part of gross pay?
Yes. Employees must report cash tips of $20 or more in a month to the employer, and reported tips are subject to income tax, Social Security and Medicare withholding.
When does overtime count in gross pay?
Under the federal Fair Labor Standards Act, non-exempt employees get at least 1.5 times their regular rate for hours over 40 in a workweek. Federal law does not require extra pay for weekends or holidays as such. Some states add daily rules: California pays 1.5× after 8 hours in a workday and 2× after 12.
How much is $20 an hour gross per week?
40 hours at $20 is $800 gross a week. With 5 overtime hours at time and a half ($30) it is $950.
Sources: US Department of Labor: Overtime pay · IRS Topic 761: Tips, withholding and reporting · California DIR: Overtime FAQ