Certified Payroll Professional Practice Exam 2026 - Free CPP Practice Questions and Study Guide

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What is the overtime pay rate for a salaried employee who earns $1,000 per week when they work 50 hours?

$1,200

$1,375

To calculate the overtime pay for a salaried employee who works more than 40 hours in a week, you first need to establish the employee's hourly rate and then determine the overtime rate.

For an employee earning a salary of $1,000 per week, the calculation of the hourly rate is as follows:

1. Determine the standard number of work hours in a week, which is typically considered to be 40 hours.

2. Divide the weekly salary by the number of standard hours:

\[

\text{Hourly Rate} = \frac{\text{Weekly Salary}}{\text{Standard Hours}} = \frac{1000}{40} = 25 \text{ dollars per hour}

\]

Next, to find the overtime pay rate, you multiply the hourly rate by 1.5 (the standard overtime rate for non-exempt employees):

\[

\text{Overtime Rate} = 25 \times 1.5 = 37.50 \text{ dollars per hour}

\]

Now, the employee in question worked 50 hours, which is 10 hours of overtime (50 hours worked - 40 regular hours = 10 overtime hours).

To find the total pay for that

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$1,400

$1,800

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