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Eight extra hours a week for a year
The crew already works 40 hours. You expect 8 more hours every week for 52 weeks, at a $24 regular rate and a 1.5 multiplier. A new hire would be paid $48,000. The burden box is 7.65 percent, the 2026 employer share of Social Security plus Medicare.
Extra hours each week: 25% lower
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Extra hours each week: 25% higher
Change extra hours each week to 10 hours while keeping the other example values the same.
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Quick answer
What does the Overtime versus a new hire calculate?
What does overtime cost next to a new hire? This calculator uses extra hours each week, weeks in the comparison, regular hourly rate, overtime multiplier, new hire annual pay, and employer burden to estimate extra hours versus a loaded hire immediately in your browser.
With the values currently entered, the result is $14,976.00 — overtime pay, and it is lower. It also shows overtime pay, half-time premium, loaded new hire, burden inside the hire, and cost gap.
How to use the Overtime versus a new hire
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Extra hours each week — entered in hours
- Weeks in the comparison — entered in weeks
- Regular hourly rate
- Overtime multiplier
- New hire annual pay
- Employer burden — entered in %
Overtime versus a new hire formula
Overtime pay = extra hours × weeks × hourly rate × multiplier. Loaded hire = annual pay × (1 + burden) × weeks ÷ 52. The half-time premium is the pay above straight time.
Assumptions
- DOL Fact Sheet 23 says covered nonexempt employees receive overtime for hours over 40 in a workweek at not less than time and one-half their regular rate. The 1.5 in the box is that federal floor. A higher contract rate goes in the same box. Each workweek still stands on its own.
- IRS Publication 15 for 2026 sets the employer share at 6.2 percent Social Security plus 1.45 percent Medicare, which is 7.65 percent. Social Security stops at the $184,500 wage base. Benefits, state unemployment, and workers’ compensation are extra, so add them to the percent when you want them in the hire.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Requires overtime for hours worked over 40 in a workweek at not less than time and one-half the regular rate. The Act applies one workweek at a time. Averaging hours over two or more weeks is not permitted.
Publication 15 (2026), Employer’s Tax GuideInternal Revenue ServiceScope: US employer Social Security and Medicare tax for 2026Sets the Social Security tax rate at 6.2 percent each for the employer and the employee, on wages up to $184,500. The Medicare tax rate is 1.45 percent each, with no wage base. The 7.65 percent default is those two employer rates added together.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Overtime versus a new hire example and edge cases
Covering extra hours with overtime and hiring someone are two different bills. DOL Fact Sheet 23 sets the federal floor at time and one-half after 40 hours in a workweek. This page prices that overtime against a new hire loaded with the employer FICA rate from IRS Publication 15.
Example: Eight extra hours a week for a year
The crew already works 40 hours. You expect 8 more hours every week for 52 weeks, at a $24 regular rate and a 1.5 multiplier. A new hire would be paid $48,000. The burden box is 7.65 percent, the 2026 employer share of Social Security plus Medicare.
- Extra hours each week
- 8 hours
- Weeks in the comparison
- 52 weeks
- Regular hourly rate
- 24
- Overtime multiplier
- 1.5
- New hire annual pay
- 48,000
- Employer burden
- 7.65 %
Calculated result$14,976.00overtime pay, and it is lower
Overtime pay is 14,976, and that is the lower cost. The half-time premium inside it is 4,992. The loaded hire for the same 52 weeks is 51,672, which is 36,696 more. The 3,672 gap between 48,000 and 51,672 is the 7.65 percent burden.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the lower cost first. On these hours, time and a half for a year is 14,976. Hiring at 48,000 plus employer FICA is 51,672 for the same 52 weeks.
- Publication 15 for 2026 stops the 6.2 percent Social Security rate at a $184,500 wage base. This salary sits under that base. Benefits and state unemployment are still outside the 7.65 percent, so raise the burden box when you want them included.
Edge cases worth checking
The extra hours change from week to week
Fact Sheet 23 applies one workweek at a time. Averaging a busy week with a quiet week is outside the rule. Type a typical week here for a planning total, then price a real time card on the time card and overtime calculator.
The new hire would be exempt from overtime
The 1.5 multiplier is the federal floor for covered nonexempt work. An exempt salary can sit in the annual-pay box with the multiplier left on the overtime side only. The page still compares the two amounts you type.
What changes the result most
Extra hours each week
Keep extra hours each week on the same time basis as the other inputs. Monthly and annual values are easy to mix up.
Weeks in the comparison
Keep weeks in the comparison on the same time basis as the other inputs. Monthly and annual values are easy to mix up.
Regular hourly rate
Test a lower and higher regular hourly rate. A small percentage change can move the final result more than expected.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Extra hours each week: 25% lower
6 hours$11,232.00overtime pay, and it is lower
Extra hours each week: 25% higher
10 hours$18,720.00overtime pay, and it is lower
Weeks in the comparison: 25% higher
65 weeks$18,720.00overtime pay, and it is lower
Common mistakes
Check extra hours each week
DOL Fact Sheet 23 says covered nonexempt employees receive overtime for hours over 40 in a workweek at not less than time and one-half their regular rate. The 1.5 in the box is that federal floor. A higher contract rate goes in the same box. Each workweek still stands on its own. Make sure this matches the number you enter.
Keep employer burden consistent
IRS Publication 15 for 2026 sets the employer share at 6.2 percent Social Security plus 1.45 percent Medicare, which is 7.65 percent. Social Security stops at the $184,500 wage base. Benefits, state unemployment, and workers’ compensation are extra, so add them to the percent when you want them in the hire. Use the same units and time period throughout the calculation.
Do not rely on one overtime versus a new hire scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What does overtime cost next to a new hire?
It does not replace a quote, contract, accountant, or local employment guidance.