How do overtime and double time hours work in Zoho Payroll?
- Overtime applies when employees work more than 40 hours in a workweek. When overtime applies, they must be compensated at 1.5 times their regular rate of pay for the additional hours worked.
- Double time refers to hours that are paid at twice the regular rate. While not mandatory in all cases, some businesses or states (like California) apply double time for hours worked beyond 12 hours in a day or on the seventh consecutive workday.
SCENARIO Let’s say an employee’s regular hourly rate is $20:
- For overtime, they’ll be paid $30/hour
- For double time, they’ll be paid $40/hour
The rules for overtime and double time pay may vary by state. Zoho Payroll automatically handles these calculations based on the applicable federal and state labor laws.
When processing a payroll, simply enter the overtime and double time hours worked during the current pay period. Zoho Payroll will apply the correct pay rates and calculate the total pay accordingly.