Overview
SmartOvertime provides free calculators for overtime pay (including hourly and salaried variants), PTO accrual, and PTO payout. Each tool applies formulas and rule summaries maintained in our codebase. This page explains where those numbers come from and what we do not model.
Overtime Calculations
Federal overtime defaults follow the Fair Labor Standards Act (FLSA): non-exempt employees generally receive 1.5× their regular rate for hours over 40 in a workweek. The U.S. Department of Labor — Overtime Pay and the DOL FLSA Advisor (vacation & overtime FAQ) are primary federal references. Core math lives in calculate.ts (regular hours up to a threshold, then 1.5× overtime, optional 2× double-time hours).
State weekly thresholds and multipliers are stored in states.ts and shown on state overtime pages. Behavior differs by tool — this matches the actual UI:
- Main overtime calculator (/overtime-calculator, homepage): weekly or daily mode when the selected state has a daily threshold (e.g., California 8-hour daily OT and optional 2× after 12 hours).
- Hourly and salaried calculators: apply each state's weekly threshold and 1.5× multiplier only — they do not model daily overtime or double time.
Exempt salaried classifications, tipped credits, blended rates, and industry exceptions are not fully modeled. Use results as estimates and confirm with payroll or the DOL.
PTO Accrual
The PTO accrual calculator uses standard payroll math implemented in calculate-pto.ts:
- Per pay period: annual PTO hours ÷ pay periods per year (26 biweekly, 24 semi-monthly, 52 weekly, 12 monthly)
- Per hour worked: annual PTO hours ÷ annual hours worked (default 2,080 for full-time 40×52)
- Annual lump sum: full allowance granted once per policy year
Accrual rates come from your inputs, not state law — the DOL confirms FLSA does not require employers to offer paid vacation. Employer handbooks set actual accrual schedules, caps, and waiting periods.
PTO Payout & State Rules
The PTO payout calculator computes gross payout = unused PTO hours × hourly rate. For salaried inputs we derive an hourly equivalent using 2,080 hours per year (40×52), matching the payout calculator UI.
Whether payout is legally required depends on state law and employer policy. Many states only require payout when the employer offers paid vacation/PTO and the employee has earned unused time — federal law does not mandate vacation benefits. Rule summaries, statutes, and links to state labor agencies live in pto-states.ts and appear when you select a state. We align categories with agency publications such as the California DLSE vacation FAQ and the Illinois Department of Labor vacation FAQ. Browse all jurisdictions on PTO by state.
Federal Tax Estimate (PTO Payout)
PTO payout is typically treated as supplemental wages. IRS Publication 15 (2026), Section 7, lists vacation pay among supplemental wages and documents an optional flat federal withholding rate of 22% when total supplemental wages in a calendar year do not exceed $1 million (37% may apply above that threshold). Our payout tools apply 22% as a default planning estimate only — not your final tax liability.
We do not model state income tax, local tax, FICA wage bases, or employer-specific withholding methods (combined paycheck vs. separate supplemental). Ask HR for a final pay stub when precision matters.
Updates & Corrections
We review overtime and PTO rule data on a regular cadence and update states.ts and pto-states.ts when agencies publish changes. Calculator logic and editorial pages are version-controlled in our repository. If you spot an error, email hello@smartovertime.com (also listed on About) — include the state, statute, and official source link you believe is correct.
Last updated: June 13, 2026 · Reviewed by SmartOvertime Editorial
Limitations
Estimates only — not legal, tax, or financial advice. Overtime and PTO rules vary by state, employer policy, and individual circumstances. Results are for informational purposes. Consult a qualified professional or your state labor agency for definitive guidance. See our Terms of Service.
Statutes, agency guidance, and tax tables change. Always verify current rules with official sources before making employment or financial decisions.