Calculation Method Example

View the following calculation methods.

  • The Straight time equivalent method excludes overtime and double time premium dollars.

  • The Total dollars method includes overtime and double time premium.

    The example below demonstrates the difference between the straight time and total dollars calculation methods.

Employee Pay Rate

Regular = $20 / hour

Overtime = $30 / hour

Double time = $40 / hour

Worker's Compensation rate = 2.500 per $100

Time card

Pay

10 Regular hours

$200

4 Overtime hours

$120

1 Double time hour

$ 40

Total:

$360

Using the Total dollars method:

Regular

200 x 2.5 / 100 = 5.00

Overtime

120 x 2.5 / 100 = 3.00

Double time

40 x 2.5 / 100 = 1.00

Total:

9.00

Using the Straight-time equivalent dollars

Regular

200 x 2.5 / 100 = 5.00

Overtime

120 x 2/3 x 2.5 / 100 = 2.00

Double time

40 x 1/2 x 2.5 / 100 = .50

Total:

7.50