Everhour supports time tracking and reporting, while Xero overtime entries still need the right regular and overtime line split.
Calculate regular and overtime earnings based on your hours and rate. Supports standard time-and-a-half and double-time multipliers.
Total hours including overtime
Typically 40h/week
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An overtime calculation for Xero answers how many hours belong on regular earnings lines, how many belong on overtime earnings lines, and what gross pay those lines represent before they move into a pay run. For the United States federal baseline, covered nonexempt employees must receive overtime pay for hours worked over 40 in one fixed FLSA workweek at not less than 1.5 times the employee's regular rate.
Xero payroll timesheet lines carry fields such as earnings rate, optional tracking item, and number of units. That means regular hours and overtime hours need separate mapped lines when they use different pay items. The timesheet period should match the employee's payroll calendar, and approved timesheets feed the pay run for that employee.
Start with total hours actually worked in the fixed 168-hour FLSA workweek, seven consecutive 24-hour periods that may start on any day and hour. Regular hours are capped at 40 under the federal baseline. Overtime hours are hours over 40. For a simple hourly case, regular pay equals regular hours times the regular hourly rate, and overtime pay equals overtime hours times 1.5 times that rate.
Example: a covered nonexempt employee works 47 hours in one fixed FLSA workweek at a $28.40 regular hourly rate. Regular pay is 40 × $28.40 = $1,136.00. Overtime pay is 7 × $42.60 = $298.20. Total gross pay is $1,434.20. If state law, a contract, or an employer policy gives the employee greater rights, use the more generous rule.
For payroll, the important Xero step is the split. One line uses a Regular Earnings item for 40 units, and another line uses an Overtime Earnings item for 7 units. Xero timesheet lines use the earnings rate ID, optional tracking item ID, and number of units, so a single combined 47-hour line loses the distinction needed for different rates.
Check the employee setup before entry. Employees can select only earning items assigned to their pay template, and the timesheet entry must use earnings rates measured in the same time units as the employee's ordinary earnings rate. Xero's own guidance treats salaried overtime differently: timesheets are for hourly employees, while additional salaried overtime payments are added manually to the pay run or to the pay template if recurring.
A one-off calculator is enough when you need to check one employee, one workweek, and one regular hourly rate before entering Xero lines. It is also enough for a quick billing estimate in Xero Projects, where task time and rates can feed quote or invoice amounts through quantity and unit amount. Keep the workweek fixed and do not average two workweeks together.
A managed workflow is better when approvals, corrections, exports, and repeat audits matter. Everhour Reporting can show overtime through Team Hours and custom reports, with columns, grouping, filters, date ranges, and exports to CSV, Excel/XLSX, or PDF. That gives managers a review layer before numbers are copied into payroll, billing, or accounting records.
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For payroll timesheets, the line-level fields that matter are the earnings rate, optional payroll tracking item, and number of units. Regular hours and overtime hours need separate lines when they use different earnings rates. The timesheet header identifies the employee, pay-period start and end dates, status, total hours, and Xero-generated timesheet ID.
No. Xero organizes payroll lines and pay runs, but it does not change the federal baseline rule. Under the FLSA, covered nonexempt employees must receive overtime pay for hours worked over 40 in a fixed workweek at not less than 1.5 times the employee's regular rate, unless a more protective state rule applies.
Do not combine them when different rates apply. Xero timesheet lines use an earnings rate and number of units, so regular hours should map to a Regular Earnings item and overtime hours should map to an Overtime Earnings item. Combining the hours into one line creates the wrong rate treatment for the overtime portion.
Xero's timesheet guidance says timesheets are for hourly employees and should not be used to process additional overtime payments for salaried employees. Additional salary overtime payments are added manually to the pay run, or added to the employee's pay template if the payment is recurring.
The federal FLSA does not require overtime pay merely because work occurs on Saturdays, Sundays, holidays, or regular days of rest. The federal trigger is hours worked over 40 in the workweek unless another law, policy, contract, or agreement applies. In Xero, use the earning item that matches the actual rule being paid.
Everhour Reporting lets managers review overtime through Team Hours and configurable reports before payroll entry. Reports can use columns, grouping, filters, date ranges, and exports, including CSV, Excel/XLSX, and PDF, so regular and overtime totals can be checked before they are mapped into Xero.
Use Everhour Reporting to group, filter, and export overtime data before Xero entry, keeping approvals and review details visible before payroll numbers become final.
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