What if I received double overtime (2x base pay) ?
You can only deduct the Fair Labor Standards Act (FLSA) Overtime Rate (Time-and-a-Half) even if your overtime pay is higher.
To calculate your overtime premium for double (2x) overtime hours, divide your total yearly double overtime by 4 to get the overtime premium amount. Add this to your deduction calculated for time-and-a-half (1.5x) overtime to arrive at the total allowable deduction.
For example, if you had $2,000 of total double overtime pay and $900 of time-and-a-half overtime pay, you'd have $800 of Deductible Overtime Compensation.
Double Time Deductible Overtime Pay: $2,000 / 4 = $500
Time and a Half Deductible Overtime Pay: $900 / 3 = $300
Total Deductible Overtime Pay: $500 + $300 = $800
To calculate your overtime premium for double (2x) overtime hours, divide your total yearly double overtime by 4 to get the overtime premium amount. Add this to your deduction calculated for time-and-a-half (1.5x) overtime to arrive at the total allowable deduction.
For example, if you had $2,000 of total double overtime pay and $900 of time-and-a-half overtime pay, you'd have $800 of Deductible Overtime Compensation.
Double Time Deductible Overtime Pay: $2,000 / 4 = $500
Time and a Half Deductible Overtime Pay: $900 / 3 = $300
Total Deductible Overtime Pay: $500 + $300 = $800
