ADP Hourly Paycheck Calculator
Calculating take-home pay from hourly wages requires understanding federal withholding, FICA taxes, state taxes, and various deductions that reduce gross pay to net pay. This comprehensive ADP hourly paycheck calculator helps hourly employees estimate their net earnings, understand tax withholdings, calculate overtime pay, and determine actual take-home amounts using the same calculation methodology employed by ADP (Automatic Data Processing) and other major payroll processors with properly formatted mathematical formulas for accurate paycheck estimates.
Calculate Your Hourly Paycheck
⏰ Work Hours & Pay Rate
👤 Tax Information
💰 Deductions (Optional)
Understanding Hourly Paycheck Calculations
Hourly employees' paychecks vary based on hours worked each pay period, making calculation more variable than salaried employees' fixed paychecks. Understanding how gross pay converts to net take-home pay helps budget effectively and verify paystub accuracy. The calculation process moves through multiple stages: gross pay calculation including overtime, tax withholdings (federal, FICA, state, local), pre-tax deductions, and post-tax deductions.
Hourly Paycheck Formulas
Essential Hourly Paycheck Formulas:
Gross Pay (No Overtime):
\[ \text{Gross Pay} = \text{Hours Worked} \times \text{Hourly Rate} \]
Gross Pay (With Overtime):
\[ \text{Gross Pay} = (\text{Regular Hours} \times \text{Rate}) + (\text{OT Hours} \times \text{Rate} \times 1.5) \]
Overtime Rate:
\[ \text{OT Rate} = \text{Hourly Rate} \times 1.5 \]
Federal Income Tax (Estimated):
\[ \text{Federal Tax} = (\text{Taxable Income} \times \text{Tax Rate}) - \text{Allowance Reduction} \]
FICA Taxes:
Social Security (6.2% up to wage base):
\[ \text{SS Tax} = \text{Gross Pay} \times 0.062 \]
Medicare (1.45% all wages):
\[ \text{Medicare Tax} = \text{Gross Pay} \times 0.0145 \]
Total FICA:
\[ \text{FICA} = \text{Gross Pay} \times 0.0765 \]
State Income Tax:
\[ \text{State Tax} = \text{Gross Pay} \times \text{State Rate} \]
Net Take-Home Pay:
\[ \text{Net Pay} = \text{Gross} - \text{Federal Tax} - \text{FICA} - \text{State Tax} - \text{Deductions} \]
Annual Salary Equivalent:
\[ \text{Annual Salary} = \text{Hourly Rate} \times 2080 \text{ hours} \]
(Based on 40 hours/week × 52 weeks)
Comprehensive Hourly Paycheck Example
Example: Bi-Weekly Paycheck with Overtime
Employee Details:
- Hourly rate: $20.00/hour
- Regular hours: 80 hours (2 weeks × 40 hours)
- Overtime hours: 10 hours
- Filing status: Single
- State tax rate: 5%
- 401(k) contribution: 5%
Step 1: Calculate Gross Pay
Regular pay: 80 hours × $20 = $1,600
Overtime rate: $20 × 1.5 = $30/hour
Overtime pay: 10 hours × $30 = $300
\[ \text{Gross Pay} = \$1,600 + \$300 = \$1,900 \]
Step 2: Calculate Pre-Tax Deductions
401(k) contribution: $1,900 × 0.05 = $95
Taxable gross: $1,900 - $95 = $1,805
Step 3: Calculate Federal Income Tax (Estimated)
Using simplified estimation for single filer:
Annual equivalent: $1,805 × 26 = $46,930
Estimated federal withholding: ~12-15% effective rate = $216-$271
Using $225 for this example
Step 4: Calculate FICA Taxes
Social Security: $1,805 × 0.062 = $111.91
Medicare: $1,805 × 0.0145 = $26.17
Total FICA: $111.91 + $26.17 = $138.08
Step 5: Calculate State Tax
\[ \text{State Tax} = \$1,805 \times 0.05 = \$90.25 \]
Step 6: Calculate Net Take-Home Pay
\[ \text{Net Pay} = \$1,900 - \$95 - \$225 - \$138.08 - \$90.25 \]
\[ = \$1,351.67 \]
Summary:
Gross Pay: $1,900.00 (100%)
Total Deductions: $548.33 (28.9%)
Net Take-Home: $1,351.67 (71.1%)
Analysis: Employee takes home approximately 71% of gross pay. Deductions include 5% pre-tax 401(k), 11.8% federal tax, 7.3% FICA, and 4.8% state tax. Overtime hours ($300 gross) add $213 to net pay after taxes—worthwhile for extra income.
Overtime Pay Calculation
Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at time-and-a-half (1.5×) for hours worked over 40 in a workweek. Some states have additional requirements.
| Hours Worked | Regular Pay | Overtime Pay | Total Gross (Weekly) |
|---|---|---|---|
| 40 hours @ $20/hr | $800 | $0 | $800 |
| 45 hours @ $20/hr | $800 (40 hrs) | $150 (5 hrs × $30) | $950 |
| 50 hours @ $20/hr | $800 (40 hrs) | $300 (10 hrs × $30) | $1,100 |
| 60 hours @ $20/hr | $800 (40 hrs) | $600 (20 hrs × $30) | $1,400 |
State-Specific Overtime Rules: California requires overtime after 8 hours per day (even if under 40 weekly) and double-time after 12 hours per day or for 7th consecutive day. Alaska requires overtime after 8 hours per day or 40 per week. Colorado requires overtime after 12 hours per day or 40 per week. Nevada requires overtime after 8 hours per day if paid under $12/hour, or 40 per week if paid $12+/hour. Some states allow different rules for specific industries (agriculture, healthcare). Always verify your state's specific overtime requirements. Federal FLSA sets minimum—states can provide more generous terms but not less.
FICA Tax Calculation
FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare programs. Both employee and employer pay equal amounts, with employees seeing their portion withheld from paychecks.
FICA Tax Components:
Social Security Tax (OASDI):
Rate: 6.2% for employee + 6.2% for employer = 12.4% total
Wage base limit: $168,600 (2024)
\[ \text{SS Tax} = \min(\text{Wages}, \$168,600) \times 0.062 \]
Once earnings exceed $168,600, no more SS tax withheld
Medicare Tax (HI):
Rate: 1.45% for employee + 1.45% for employer = 2.9% total
No wage base limit—applies to all wages
\[ \text{Medicare Tax} = \text{Wages} \times 0.0145 \]
Additional Medicare Tax:
Rate: 0.9% on wages over threshold (employee only, no employer match)
Thresholds: $200,000 (single), $250,000 (married filing jointly), $125,000 (married filing separately)
\[ \text{Additional Medicare} = \max(0, \text{Wages} - \text{Threshold}) \times 0.009 \]
Combined FICA (typical employee):
\[ \text{Total FICA} = \text{Wages} \times 0.0765 \]
(6.2% SS + 1.45% Medicare = 7.65%)
Pay Frequency and Annual Calculations
Pay frequency affects paycheck size, number of paychecks per year, and budgeting approaches. Understanding the differences helps plan finances appropriately.
| Pay Frequency | Paychecks/Year | Hours/Paycheck (40hr/week) | Example @ $20/hr |
|---|---|---|---|
| Weekly | 52 | 40 hours | $800 gross/paycheck |
| Bi-Weekly | 26 | 80 hours | $1,600 gross/paycheck |
| Semi-Monthly | 24 | 86.67 hours | $1,733.33 gross/paycheck |
| Monthly | 12 | 173.33 hours | $3,466.67 gross/paycheck |
Annual Salary Conversions:
Hourly to Annual Salary:
\[ \text{Annual Salary} = \text{Hourly Rate} \times 2080 \]
Based on 40 hours/week × 52 weeks = 2,080 hours/year
Example: $20/hour × 2,080 = $41,600 annually
Annual Salary to Hourly Rate:
\[ \text{Hourly Rate} = \frac{\text{Annual Salary}}{2080} \]
Example: $50,000 annual ÷ 2,080 = $24.04/hour
Bi-Weekly Gross to Annual:
\[ \text{Annual} = \text{Bi-Weekly Gross} \times 26 \]
Weekly Gross to Annual:
\[ \text{Annual} = \text{Weekly Gross} \times 52 \]
Federal Income Tax Withholding
Federal tax withholding depends on Form W-4 elections, filing status, and pay frequency. IRS provides withholding tables and formulas employers use to calculate withholding.
2024 Federal Tax Brackets (Single Filers)
| Tax Rate | Income Range | Annual Salary Equivalent |
|---|---|---|
| 10% | $0 - $11,600 | $0 - $5.58/hour |
| 12% | $11,601 - $47,150 | $5.58 - $22.67/hour |
| 22% | $47,151 - $100,525 | $22.67 - $48.33/hour |
| 24% | $100,526 - $191,950 | $48.33 - $92.28/hour |
| 32% | $191,951 - $243,725 | $92.28 - $117.18/hour |
| 35% | $243,726 - $609,350 | $117.18 - $292.96/hour |
| 37% | $609,351+ | $292.96+/hour |
State Income Tax Rates
State income tax varies dramatically across the United States, significantly impacting take-home pay for hourly employees.
State Tax Categories
| State Category | Tax Structure | States | Impact on $40K Salary |
|---|---|---|---|
| No Income Tax | 0% | AK, FL, NV, NH, SD, TN, TX, WA, WY | $0 state tax |
| Low Tax | Flat 2-4% | AZ, CO, IL, IN, MI, NC, PA | $800-$1,600 |
| Moderate Tax | Progressive 3-7% | GA, KS, MO, VA, WI | $1,200-$2,800 |
| High Tax | Progressive 5-10% | CT, NJ, NY, OR | $2,000-$4,000 |
| Highest Tax | Progressive 9-13.3% | CA, HI | $3,600-$5,320 |
Pre-Tax vs. Post-Tax Deductions
Understanding difference between pre-tax and post-tax deductions is crucial for maximizing take-home pay and tax efficiency.
Common Pre-Tax Deductions
- 401(k) Contributions: Traditional 401(k) contributions reduce taxable income dollar-for-dollar. Maximum $23,000 (2024), $30,500 if age 50+. Example: $20/hour employee contributing 5% saves $83/paycheck in taxes (bi-weekly, 22% federal + 7.65% FICA + 5% state).
- Health Insurance Premiums: Employer-sponsored health insurance premiums typically pre-tax under Section 125 cafeteria plans. $100/paycheck premium saves approximately $35 in taxes.
- HSA Contributions: Health Savings Account contributions pre-tax if through employer payroll. 2024 limits: $4,150 individual, $8,300 family. Triple tax advantage: deductible, tax-free growth, tax-free withdrawals for medical.
- FSA Contributions: Flexible Spending Accounts for medical ($3,200 limit) or dependent care ($5,000 limit). "Use it or lose it" applies with limited rollover/grace period.
- Commuter Benefits: Transit passes, parking up to $315/month (2024) pre-tax. Reduces taxes on qualified transportation expenses.
Common Post-Tax Deductions
- Roth 401(k) Contributions: After-tax contributions, tax-free withdrawals in retirement. No current tax deduction but future tax-free growth.
- Disability Insurance: Voluntary disability insurance premiums typically post-tax, making benefits tax-free if needed.
- Life Insurance: Employer-sponsored life insurance over $50,000 taxed as imputed income. Additional coverage typically post-tax.
- Wage Garnishments: Child support, tax levies, student loan garnishments taken post-tax from net pay.
- Union Dues: Union membership fees typically post-tax deductions.
Tax Savings Example: $20/hour employee, bi-weekly pay ($1,600 gross). Without pre-tax deductions: Federal 12% ($192) + FICA 7.65% ($122.40) + State 5% ($80) = $394.40 total tax on $1,600 = 24.65% effective rate. With $200 pre-tax deductions (401k $160 + health insurance $40): Taxable income $1,400. Federal 12% ($168) + FICA 7.65% ($122.40) + State 5% ($70) = $360.40 total tax. Tax savings: $394.40 - $360.40 = $34 per paycheck = $884 annually. Pre-tax deductions save $34 in taxes on $200 deducted, netting $166 actual cost for $200 in benefits/savings—17% discount via tax savings.
ADP Payroll System Overview
ADP (Automatic Data Processing) is one of the world's largest payroll processing companies, serving over 1 million clients and processing payroll for approximately 40 million workers globally. Understanding how ADP calculates paychecks helps employees verify their paystubs and employers ensure accurate processing.
How ADP Calculates Paychecks
- Time Collection: ADP imports hours from time clock systems, timesheets, or manual entry. Automatically calculates overtime based on employer policies and state laws.
- Gross Pay Calculation: Multiplies hours by rates including overtime, shift differentials, bonuses, commissions. Handles multiple pay rates per employee if applicable.
- Pre-Tax Deductions: Subtracts 401(k), health insurance, HSA, FSA, and other pre-tax elections reducing taxable income.
- Tax Withholding: Applies federal withholding using IRS tax tables based on W-4 elections and pay frequency. Calculates FICA taxes (Social Security and Medicare). Applies state and local taxes using respective tax tables and employee addresses.
- Post-Tax Deductions: Subtracts Roth contributions, garnishments, union dues, and other after-tax deductions.
- Net Pay: Calculates final take-home amount. Generates direct deposit instructions or prints physical checks. Creates detailed paystub showing all calculations.
- Compliance: Ensures all withholdings meet federal, state, and local requirements. Handles quarterly and annual tax filings (941, 940, W-2s, 1099s).
Common Hourly Paycheck Mistakes
- Misclassifying Overtime Hours: Failing to pay time-and-a-half for hours over 40 per week violates FLSA. Example: Paying straight time for 50 hours ($1,000) instead of proper overtime ($1,100) shorts employee $100. Common in manual timekeeping systems without automatic OT calculation.
- Incorrect Pay Frequency Math: Multiplying weekly pay by 4 to estimate monthly instead of correct calculation (weekly × 52 ÷ 12 = monthly). Four-week months occur, but annual math requires 52 weeks, not 48 (4 × 12).
- Forgetting State-Specific Rules: Applying only federal overtime rules in states with more generous requirements. California requires OT after 8 hours/day even if under 40 weekly—ignoring this creates wage violations and penalties.
- Miscounting FICA on Tips: Servers and bartenders must report cash tips. FICA applies to tips, not just base hourly wage. Unreported tips create tax liability and Social Security credit issues.
- Not Tracking YTD for Social Security Cap: Continuing to withhold 6.2% Social Security after reaching $168,600 wage base. High earners should see SS tax cease mid-year; continued withholding requires refund request from IRS (time-consuming).
- Incorrect W-4 Withholding: Using outdated W-4 or failing to update after life changes (marriage, children, home purchase). Results in over/under withholding—either needlessly reduced paychecks or surprise tax bills.
- Confusing Pre-Tax vs. Post-Tax Deductions: Treating Roth 401(k) as pre-tax (it's post-tax) or paying union dues pre-tax (should be post-tax). Misclassification affects taxable income calculation and creates compliance issues.
- Missing Break Deductions: In states requiring unpaid meal breaks, failing to deduct break time from paid hours. California requires 30-minute unpaid meal break for shifts over 5 hours—not deducting overpays and creates compliance issues.
Maximizing Hourly Take-Home Pay
Strategies to Increase Net Pay
- Optimize W-4 Withholding: Review W-4 annually and after life changes. If receiving large refunds, you're over-withholding—claim additional allowances to increase take-home. Use IRS withholding calculator to dial in precise withholding matching actual tax liability.
- Maximize Pre-Tax Deductions: Contribute to 401(k) up to employer match at minimum—free money via match plus immediate tax savings. Use HSA if eligible—triple tax advantage beats 401(k). Front-load FSA contributions to access full annual amount early in year while spreading payments across all paychecks.
- Negotiate Higher Base Rate: $1/hour raise = $2,080 annually (2,080 hours). After 25% taxes, nets $1,560/year or $60/paycheck (bi-weekly). Multiple small raises compound significantly over years.
- Work Strategic Overtime: Overtime hours pay 1.5× base rate. While taxed same as regular income (not higher despite common belief), the extra 50% more than offsets tax bite. Ten overtime hours weekly adds $15,600 annual gross (~$11,000 net after taxes).
- Utilize Employer Benefits: Take full advantage of employer-paid benefits: health insurance (saves $500-$1,500/month), retirement match (typically 3-6% of salary, free money), education reimbursement ($5,250 annual tax-free), commuter benefits ($315/month transit/parking).
- Move to Lower-Tax State: Moving from California (13.3% top rate) to Texas (0% state tax) saves $5,320 annually on $40,000 salary. No state income tax states: AK, FL, NV, NH, SD, TN, TX, WA, WY.
- Request Direct Deposit: Avoids check-cashing fees ($5-$15 per check) and provides immediate access on payday. Over year, saves $130-$390 in fees (26 bi-weekly paychecks).
- Claim All Eligible Tax Credits: Earned Income Tax Credit (EITC) for low-to-moderate income workers. Child Tax Credit ($2,000 per child under 17). Education credits (American Opportunity, Lifetime Learning). Credits reduce actual tax owed dollar-for-dollar, more valuable than deductions.
Frequently Asked Questions
How do you calculate hourly paycheck?
Calculate hourly paycheck following six steps: 1) Calculate gross pay: Regular hours (up to 40 weekly) × hourly rate, plus overtime hours × hourly rate × 1.5. Example: $20/hour, 45 hours = (40 × $20) + (5 × $20 × 1.5) = $800 + $150 = $950 gross. 2) Subtract federal income tax based on W-4 and tax tables (typically 10-22% for most hourly workers). 3) Subtract FICA: Social Security 6.2% + Medicare 1.45% = 7.65%. On $950: $72.68 FICA. 4) Subtract state tax (0-13.3% depending on state). 5% state: $47.50. 5) Subtract pre-tax deductions (401k, health insurance) before taxes, post-tax deductions after taxes. 6) Calculate net pay = Gross - All taxes and deductions. Example: $950 - $114 federal - $72.68 FICA - $47.50 state - $40 health = $675.82 net (71.1% take-home). Typical hourly workers keep 70-80% of gross as take-home depending on tax situation and deductions.
What is ADP paycheck calculator?
ADP (Automatic Data Processing) is major payroll processing company serving over 1 million employers and processing payroll for approximately 40 million workers globally. ADP paycheck calculator estimates take-home pay for employees whose employers use ADP for payroll processing. Calculator replicates ADP's calculation methodology: gross pay calculation, federal tax withholding using IRS tables, FICA taxes (Social Security and Medicare), state and local taxes, pre-tax and post-tax deductions. While this calculator uses same formulas and logic as ADP's system, actual paychecks depend on specific W-4 elections, benefit choices, employer policies, and state/local jurisdictions entered in employer's ADP account. Use calculator for estimates and planning; actual pay determined by data in employer's ADP payroll system. ADP handles all tax filings, W-2 generation, direct deposits, and compliance, making it comprehensive payroll solution beyond just calculation.
How much is taken out of my hourly paycheck?
Typical deductions from hourly paycheck total 20-30% for taxes plus benefit deductions: Federal income tax: 10-22% for most hourly workers ($20,000-$80,000 annual equivalent). Depends on filing status, W-4 allowances, and annual income. Social Security: 6.2% of gross wages up to $168,600 annual wage base (2024). Medicare: 1.45% of all gross wages (no cap), plus Additional Medicare 0.9% over $200,000 single/$250,000 married. Total FICA: 7.65% for most workers. State income tax: 0% (9 states) to 13.3% (California). Most states 3-7%. Typical 5% = $50 per $1,000 gross. Local/city tax: 0-4% if applicable (PA, OH, NY, KY cities common). Pre-tax deductions: Health insurance ($50-$300/paycheck), 401(k) contributions (3-10% typical), HSA, FSA. Post-tax deductions: Roth 401(k), garnishments, union dues. Example breakdown on $1,000 gross bi-weekly: Federal $120 (12%) + FICA $76.50 (7.65%) + State $50 (5%) + Health $100 = $346.50 total deductions. Net: $653.50 (65.4% take-home). Range typically 65-80% take-home depending on state, deductions, and income level.
How to calculate overtime pay?
Calculate overtime pay using time-and-a-half rule mandated by Fair Labor Standards Act (FLSA) for non-exempt employees: Step 1: Identify regular hours (maximum 40 per workweek) and overtime hours (hours worked over 40). Step 2: Calculate overtime rate by multiplying regular hourly rate by 1.5. Formula: OT Rate = Hourly Rate × 1.5. Example: $20/hour regular rate, OT rate = $20 × 1.5 = $30/hour. Step 3: Calculate total pay: Regular Pay = Regular Hours × Hourly Rate. Overtime Pay = Overtime Hours × OT Rate. Total Gross = Regular Pay + Overtime Pay. Complete example: $18/hour, 50 hours worked. Regular: 40 hours × $18 = $720. Overtime rate: $18 × 1.5 = $27/hour. Overtime: 10 hours × $27 = $270. Total gross: $720 + $270 = $990. State variations: California requires OT after 8 hours daily and double-time after 12 hours daily. Alaska requires OT after 8 hours daily or 40 weekly. Nevada requires OT after 8 hours daily (if under $12/hour) or 40 weekly. Some employers pay double-time (2.0×) for holidays or 7th consecutive workday—check company policy. Salaried non-exempt calculate OT using regular rate (salary ÷ hours worked). Overtime significantly boosts gross pay—10 OT hours weekly adds $14,040 annual gross at $18/hour base.
How often do hourly employees get paid?
Hourly employees' pay frequency varies by employer policy and state law requirements: Bi-weekly (26 paychecks/year): Most common for hourly workers. Paid every two weeks, typically same day (every other Friday). Results in two 3-paycheck months annually. 80 hours per paycheck for 40-hour/week employees. Weekly (52 paychecks/year): Common in construction, manufacturing, retail. Paid every week on set day (usually Friday). Provides fastest access to earnings but more frequent payroll processing. 40 hours per paycheck for full-time. Semi-monthly (24 paychecks/year): Less common for hourly but used by some employers. Paid twice monthly, typically 1st and 15th or 15th and last day. Hours may span pay periods requiring careful tracking. 86.67 hours per paycheck average. Monthly (12 paychecks/year): Rare for hourly workers, more typical for salaried. Paid once monthly, usually last working day. Requires significant budgeting discipline. 173.33 hours per paycheck. State minimums: California, Iowa, Massachusetts require at least semi-monthly for most employees. Connecticut, Delaware require weekly or bi-weekly. New Hampshire, Vermont require weekly or bi-weekly. Most states allow employer choice within reasonable frequency. Bi-weekly provides good balance—frequent enough for cash flow, infrequent enough for efficient payroll processing. Two extra paychecks annually compared to semi-monthly creates budgeting consideration.
Why is my overtime taxed more?
Common misconception: Overtime is NOT taxed at higher rate than regular pay. All wages (regular and overtime) taxed identically based on total income and tax bracket. Confusion arises because: Larger Paychecks Trigger More Withholding: Payroll systems use annualization—project current paycheck over full year to estimate annual income. Paycheck with overtime appears like higher annual salary, triggering higher withholding percentage. Example: Regular $1,000 bi-weekly ($26,000 annually) withholds 12% federal ($120). With overtime, $1,500 paycheck ($39,000 annually) withholds 12% on more income ($180 federal). Percentage similar but dollar amount higher due to larger base. Marginal Tax Brackets: Additional income taxed at your marginal rate (rate on last dollar earned). If regular income already fills lower brackets, overtime pushes into next bracket. Example: Regular income fills 12% bracket, overtime dollars taxed at 22%. Not all overtime at 22%, only amount exceeding bracket threshold. Your actual tax rate on all income is lower effective rate, not marginal rate. Withholding vs. Actual Tax: Withholding is estimate, not final tax. When filing annual return, all income (regular + overtime) calculated together using progressive brackets. If overwithhold (common with variable hours), receive refund. If underwithhold, owe payment. Solution: Adjust W-4 if consistently over/underwithheld. Bottom line: Overtime dollars worth same after-tax value as regular dollars. Work overtime when available—50% wage premium (time-and-a-half) far exceeds any tax impact. After 25% total taxes, overtime still nets 37.5% more than regular hours.
How do I calculate annual salary from hourly rate?
Calculate annual salary equivalent from hourly rate using standard 2,080 hours full-time work year: Formula: Annual Salary = Hourly Rate × 2,080 hours. Where 2,080 = 40 hours/week × 52 weeks/year. Examples: $15/hour: $15 × 2,080 = $31,200 annually. $20/hour: $20 × 2,080 = $41,600 annually. $25/hour: $25 × 2,080 = $52,000 annually. $30/hour: $30 × 2,080 = $62,400 annually. $40/hour: $40 × 2,080 = $83,200 annually. Reverse calculation (annual to hourly): Hourly Rate = Annual Salary ÷ 2,080. Example: $50,000 salary ÷ 2,080 = $24.04/hour. With overtime: Regular calculation assumes 40-hour weeks. If regularly working overtime, actual annual higher. Example: $20/hour, averaging 50 hours weekly (10 OT). Regular: 40 × $20 × 52 = $41,600. Overtime: 10 × $30 (time-and-a-half) × 52 = $15,600. Total: $41,600 + $15,600 = $57,200 annually with regular OT. Important: Hourly workers' actual annual income varies based on hours worked. Use 2,080-hour calculation for full-time equivalent comparison to salaried positions. Benefits consideration: When comparing hourly to salaried, factor benefits. Salaried often includes paid vacation, sick days, holidays (potentially 15-25 days annually = $3,000-$5,000 value at $20/hour). Hourly paid only for hours worked, making actual earnings variable. Consider total compensation, not just base rate, when evaluating opportunities.
