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.