Blog

Guides to the questions behind our calculators: what the rules say, where the numbers come from, and worked examples.

  1. Do salaried employees get overtime pay? The three tests that decide it

    A salary does not exempt you from overtime on its own. Exemption depends on three tests: duties, salary basis and salary level. Here are the current federal thresholds, why the $58,656 figure is out of date, and how overtime is calculated for a salaried non-exempt employee.

  2. Is overtime pay taxable? What the 2025–2028 deduction changes

    Overtime is taxed like regular wages — there is no separate overtime tax. But for 2025–2028 a federal income-tax deduction applies to the FLSA overtime premium, capped at $12,500. Here is what it changes, what counts, and a worked example.