Extra pay for overtime hours worked by employees. When an employee works
overtime, many firms pay them time and a half or double time for the overage
worked. States govern how the additional payroll charge is handled for the computation
of workers compensation premium. Normally, the only payroll that goes into a
workers compensation premium calculation is the basic rate of pay per hour.
Any additional compensation for overtime worked in excess of the regular hourly
rate, subject to state-specific exceptions, is deleted from the payroll when
computing workers compensation premiums.