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Click here to check the Bi-Weekly Calendar.

An employee is to be paid at 1.5 their normal hourly rate for any hours ACTUALLY WORKED over 40 hours per week (use earning code OVT). An employee who has over 40 hours of paid time, but not over 40 hours of work time, should be paid overtime, but at their normal hourly rate (use earnings code OTR). For example:

Situation #1: Jane Doe works 45 hours during the Sunday to Saturday work week. She should have 40 hours coded as regular pay (earnings code (REG)and 5 hours coded as overtime (earnings code OVT).
Situation #2: John Doe works 38 hours during the Sunday to Saturday work week, and takes 8 hours vacation. He should have 32 hours coded as regular pay (earnings code REG), 8 hours coded as vacation pay (earnings code 170), and 6 hours coded as overtime at regular rate of pay (earnings coded OTR).

This means that there will be NO federal tax withheld on your paycheck. This DOES NOT mean that you will not have a tax liability at the end of the calendar year. This option is only good for the calendar year in which you fill out the W-4. A new W-4 will be required, or you will be automatically set to single with zero allowances in February by IRS regulations.

Click here to check the Taxability Grid.