The overtime tax rate is based on the same rules as the tax rate on regular pay. If your employees earn time-and-a-half for overtime work, you add this to their regular pay and calculate payroll taxes on the total amount. You can find an overtime tax calculator online, but it's not hard to calculate the taxes yourself.

Do you get taxed higher on overtime?

Under some circumstances, if you work a large amount of overtime in a single pay period, your employer might end up withholding slightly more tax during that period than is actually required in terms of your eventual salary. ... So you'll be due a refund for the excess paid in that period.

Is doing overtime worth it?

There are plenty of factors one must consider when working overtime. It's not a great fit for everyone, but it is the next logical step in crushing those money goals for some people. Working overtime can help you increase your income and accelerate achieving your financial goals.