If they work 50 hours a week, exempt employees get the same salary as if they work 30. Tip. ... An employer can legally pay exempt employees for overtime. The pay can be a bonus, a flat sum, ...

Workers earning "midrange" pay can still see meaningful savings. A warehouse supervisor earning $60,000 with $10,000 in overtime could take off a couple of thousand dollars from their federal tax bill ...

As of July 4, 2025, the One Big Beautiful Bill Act allows workers to deduct up to $12,500 of overtime pay ($25,000 for joint ...

For a worker making $40,000 or less, standard deductions often already wipe out federal tax obligations. But for someone in the $50,000 to $100,000 range, shielding $12,500 in overtime or $25,000 in ...

When deciding how to pay your employees, you have two main options: salary or hourly wages. Each has its own advantages and ...

The overtime pay would be calculated using the overtime rate of 1.5 times the regular rate of pay, or 1.5 x $25 x 10 hours = $375. Therefore, the employee’s total pay for the week would be $1,375. If ...

You can potentially make more money with hourly pay – particularly if you work more than 40 hours a week – since employees paid this way are eligible for overtime compensation.

In this case, the employee will receive their regular pay of $800 ($20 X 40 hours), plus $300.00 in overtime, or $1,100.00. Salaried employee example.

You can potentially make more money with hourly pay — particularly if you work more than 40 hours a week — since employees paid this way are eligible for overtime compensation.

Up until July 1, salaried workers making $684 per week, or $35,568 per year, or more were exempt from getting overtime pay. On that day, that threshold went up to $844 per week, or $43,888 per year.