How do I calculate payroll from hours worked?

Multiply regular hours by your hourly rate for regular pay. For overtime (hours over 40 in a week), multiply those hours by 1.5x your rate. Add both for gross wages. Then subtract federal income tax withholding, state income tax, Social Security (6.2%), and Medicare (1.45%) to get net take-home pay.

How is overtime calculated on payroll?

Under the FLSA, overtime is 1.5 times the regular hourly rate for all hours worked over 40 in a workweek. Example: $20/hour regular rate means $30/hour overtime rate. Some states (CA, CO) require daily overtime for hours over 8 in a single day.

What is the difference between gross pay and net pay?

Gross pay is total wages before any deductions. Net pay (take-home pay) is what remains after federal income tax withholding, state income tax, Social Security (6.2%), and Medicare (1.45%) are deducted. Net pay is typically 70-80% of gross pay for most workers.

How many hours is full-time vs part-time?

The IRS and ACA define full-time as 30+ hours per week (or 130 hours per month). The traditional 40-hour workweek is the most common full-time schedule. Part-time is generally under 30-35 hours per week, though the threshold varies by employer.

Payroll Hours Calculator 2026

Turn hours worked into gross pay, overtime, taxes, and net take-home.
Supports all pay frequencies — weekly, bi-weekly, semi-monthly, monthly.

FLSA overtime 1.5x · 2026 FICA rates · Federal + state withholding

Hours & Pay Details

Hourly Rate *

Regular Hours This Period

Straight-time hours. For bi-weekly: 80 hrs (40×2). For weekly: 40 hrs.

Overtime Hours This Period

Paid at 1.5× rate (FLSA). Hours over 40/week.

Pay Period

Filing Status

State Income Tax Rate

TX/FL/WA: 0% · CA: 9.3% · NY: 6.85% · National avg: ~5%

How to Calculate Payroll from Hours Worked (2026)

Converting hours to a paycheck takes three steps: calculate gross wages, subtract FICA, subtract income tax withholding.

Step 1 — Gross Wages

Regular pay: hours up to 40/week × hourly rate. Overtime pay: hours over 40 × rate × 1.5. Add both for gross.

Step 2 — FICA (2026)

Social Security: 6.2% on wages up to $176,100/year
Medicare: 1.45% on all wages (plus 0.9% additional over $200K)

Step 3 — Federal Withholding

Uses the 2026 IRS Publication 15-T percentage method. Your gross is annualized, then the bracket rates (10% / 12% / 22% / 24%...) are applied, then divided back down to the pay period amount.

FAQ

Payroll hours questions answered

How do I calculate gross pay from hours?

Regular hours × hourly rate = regular pay. Overtime hours (over 40/week) × (hourly rate × 1.5) = overtime pay. Add both for total gross pay this period.

When does overtime start?

Under federal FLSA, overtime (1.5×) starts at 41+ hours in a workweek. California and Colorado also require overtime for 9+ hours in a single day. Some states require double-time (2×) for very long shifts.

What is FICA tax in 2026?

Employees pay 6.2% Social Security on wages up to $176,100, plus 1.45% Medicare on all wages. Total employee FICA is 7.65%. Employers match this amount separately.

How many hours per year is full-time?

40 hours/week × 52 weeks = 2,080 hours/year. The ACA defines full-time as 30+ hours/week. After paid holidays and PTO, productive hours are typically 1,800–1,950 per year.