Overtime Budget Calculator
Standard Formula
Required Budget = Planned Overtime Hours × Overtime Rate × 1.0765 (Payroll Taxes)
Forecasts necessary cash reserves required to fund planned overtime initiatives.
How Overtime Budget Calculator Works?
The Overtime Budget Calculator works by multiplying planned overtime hours by the 1.5× rate and adding 7.65% employer FICA to find the budget needed.
1Enter planned overtime hours
Add total hours planned, 80 by default.
2Enter the average wage
Type the average hourly wage, $25.00 by default.
3Choose employer taxes
Enter 1 to add 7.65% FICA or 0 to show wages only.
4Read the budget
$3,000.00 wages + $229.50 FICA returns $3,229.50, or $40.37 per overtime hour.
Overtime Budget Calculator Formula
The Overtime Budget Calculator formula is Required Budget = Planned OT Hours × Wage × 1.5 × 1.0765.
Direct wage cost
Wages = Hours × Wage × 1.5
Employer FICA
FICA = Wages × 0.0765
Required budget
Budget = Wages + FICA
- Hours
- Planned overtime hours.
- 0.0765
- Employer FICA rate: 6.2% Social Security + 1.45% Medicare.
- Budget
- Cash needed to fund the overtime.
Worked example: quarter-end close
150 overtime hours at $32.00. Wages = $7,200.00. FICA = $550.80.
Budget = $7,750.80.
Overtime Budget Calculator Conversion Table
The Overtime Budget Calculator conversion table shows budgets with FICA for 7 planned overtime levels at $20.00 and $25.00 average wages.
| Planned OT Hours | Wages at $20 | Budget at $20 (+FICA) | Wages at $25 | Budget at $25 (+FICA) |
|---|---|---|---|---|
| 10 hrs | $300.00 | $322.95 | $375.00 | $403.69 |
| 25 hrs | $750.00 | $807.38 | $937.50 | $1,009.22 |
| 50 hrs | $1,500.00 | $1,614.75 | $1,875.00 | $2,018.44 |
| 80 hrs | $2,400.00 | $2,583.60 | $3,000.00 | $3,229.50 |
| 100 hrs | $3,000.00 | $3,229.50 | $3,750.00 | $4,036.88 |
| 200 hrs | $6,000.00 | $6,459.00 | $7,500.00 | $8,073.75 |
| 500 hrs | $15,000.00 | $16,147.50 | $18,750.00 | $20,184.38 |
What is Overtime Budget Calculator?
An Overtime Budget Calculator is a planning tool that converts planned overtime hours into the cash budget needed, including employer payroll tax.
Employers pay 6.2% Social Security tax on wages up to the annual wage base and 1.45% Medicare tax on all wages. The Social Security wage base is $184,500 for 2026.
Unemployment taxes and workers’ compensation premiums add 1% to 5% more in most states. A full burden estimate needs those amounts.
What are the uses of Overtime Budget Calculator?
There are 4 main uses of the Overtime Budget Calculator.
Annual budgets
Finance teams set overtime lines for the next fiscal year.
Project approvals
Managers request funding for planned overtime.
Grant budgets
Nonprofits price overtime in grant applications.
Cash planning
Small businesses reserve cash for seasonal overtime.