Paying employees: overtime, bonuses, tips and pay periods
Posts on how wages are worked out and paid in the US: pay periods and schedules, overtime and exempt status, bonuses, commissions, tips and the tip credit, holiday pay, severance and the final paycheck. Many of these rules are set by the states as well as by federal law, and the posts say which level a rule comes from. Each post links the Department of Labor, IRS or state page it relies on.
Posts for the United States
11 posts, newest first
Commission pay: how to pay and tax commissions on a paycheckCommissions are supplemental wages: 22% flat federal withholding or the aggregate method, plus FICA. Minimum wage and overtime rules for commission pay.
Final paycheck laws by state (2026): when the last check and stub are dueWhen the final paycheck is due if you fire someone or they quit, state by state from each state's own law, plus what goes on the last pay stub and the W-2.
Severance pay for employers: taxes, timing and the final pay stubFederal law doesn't require severance pay. If you pay it, it's wages: 22% flat federal withholding or the aggregate method, plus FICA and FUTA, on the W-2.
Tip credit and the tipped minimum wage in 2026: what the pay stub must showHow the federal tip credit works in 2026 ($2.13 cash wage, $5.12 credit), which states ban or limit it, and how tips and the credit show on a pay stub.
Exempt vs non-exempt employees: who gets overtime in 2026Exempt employees don't get federal overtime; non-exempt employees do. The three tests, the $684 a week salary level and common mistakes, for 2026.
Holiday pay rules for employers: is holiday pay required in 2026?No federal law requires paid holidays or extra pay for holiday work. What the FLSA does require, where states differ, and how to set a holiday pay policy.
Are bonuses taxed higher? How a bonus is taxed on a paycheck in 2026Bonuses aren't taxed at a higher rate, but withholding often makes them look that way. The 22% flat method, the aggregate method and a worked 2026 example.
How to calculate overtime pay: time and a half, double time and two ratesCalculate overtime pay step by step: time and a half after 40 hours, the regular rate with bonuses, two pay rates in one week, and double time rules.
How many pay periods are in a year? 2027 weekly, biweekly and semimonthly counts52 weekly, 26 biweekly, 24 semimonthly, 12 monthly, and why 2027 has 53 Fridays. Pay period counts for 2027, the 27th payday and holiday paydays.
What is a pay period? Weekly, biweekly, semimonthly and monthlyA pay period is the run of days one paycheck covers. How weekly, biweekly, semimonthly and monthly periods work, and how they differ from the workweek.
Biweekly vs semimonthly pay: which schedule should a small employer pick?Biweekly is 26 paychecks a year, semimonthly 24. How each affects paycheck size, overtime, withholding and benefits, and which states set a minimum.
Guides and tools on this topic
Guides
Gross pay vs net pay Shift differential: how it's paid, how it changes overtime and how it shows on a pay stub Retro pay: how to calculate it and show it on a pay stub Pay stub requirements by state What does YTD mean on a pay stub?
Tools
Overtime calculator Bonus tax calculator Payroll calendar Time card calculator US paycheck calculator