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How to calculate gross pay from a time card
Gross pay is the hours on your time card converted to money before taxes and deductions. The whole calculation is four steps, and every hourly or overtime number can be checked by hand once you see the method.
The four steps
- Total each day's minutes. Add each punch pair in order (in → out). Subtract unpaid break minutes from the day's total. An out time earlier than its in time crosses midnight and counts toward the day the shift started.
- Sum the workweek. Add the daily totals for a single workweek — Monday through Sunday by default, or whatever seven-day window your employer uses. Overtime never averages across two weeks.
- Split regular from overtime. Hours up to the threshold are regular; hours above it are overtime. Federal law (FLSA) puts the weekly threshold at 40. California also pays daily overtime: over 8 and up to 12 hours in a day at 1.5x, over 12 hours at 2x, plus premiums on the seventh consecutive day.
- Apply the rates. Gross pay = regular hours × rate + overtime hours × rate × 1.5 + double-time hours × rate × 2.
Worked example: 46-hour week at $20/hour
| Bucket | Hours | Math | Pay |
|---|---|---|---|
| Regular | 40.0 | 40 × $20.00 | $800.00 |
| Overtime (1.5x) | 6.0 | 6 × $20.00 × 1.5 | $180.00 |
| Gross pay | 46.0 | $980.00 |
The same 46 hours under California daily rules can split differently — for example a 13-hour Monday pays 8 regular + 4 overtime + 1 double-time for that day — but weekly overtime is never counted twice: daily OT hours are removed from the weekly overtime base.
Details that change the answer
- Unpaid vs paid breaks. A bona fide meal period (typically 30+ minutes fully relieved of duty) can be unpaid. Short breaks of 5–20 minutes are generally paid and stay in the total.
- Rounding. Employers may round punches to the nearest increment under the FLSA 7-minute rule; rounding is a policy choice and must not systematically favor the employer.
- Pay periods. A bi-weekly period contains two full workweeks, each with its own 40-hour overtime trigger. See bi-weekly vs semi-monthly pay for how the calendars differ.
- Premiums not modeled here. Split-shift, reporting-time, and hazard premiums are contract- or state-specific and are excluded from the estimate.
Check it yourself
Enter punches and an hourly rate in the time card calculator and the gross pay updates as you type, with regular and overtime split out. For salary comparisons, use the salary to hourly or contractor rate tools.
Sources
- US Department of Labor, FLSA overtime: dol.gov/agencies/whd/overtime.
- California DIR, overtime: dir.ca.gov/dlse/faq_overtime.htm.
This page is general information and an estimate, not legal, tax, or payroll advice. Last updated: October 18, 2026