Note: When you calculate the total work hours, remember to account for the lunch break and overtime. The employee in the above example has worked 41 hours and 13 minutes. Once you add the time together, you can get the total time worked for the pay period. Total minutes = 17 + 27 + 5 + 14 + 10 = 73 minutesĬonverting 60 minutes out of the 73 into one hour gives us:.Total hours = 8 + 8 + 8 + 8 + 8 or (8 hours x 5 days) = 40 hours.
To calculate their total hours, we need to add the hours and minutes separately. Let’s assume this employee has lunch at their desk each day – so they don’t have to clock in and out for lunch break. Let’s consider the work hour details of an employee as: Here’s an example of how you can calculate total work time using an employee timesheet. You can gather this data through your timesheet or employee time tracking system. If you choose to use the actual work hours of employees for payroll, you’ll need the total hours and minutes worked for the pay period. There are two methods to follow when analyzing the time worked of hourly employees: A. Here are three steps you should follow when converting time for payroll purposes: Step 1: Calculate the total time workedĬalculating how long each employee worked is the first step in preparing payroll. However, not all of these methods are accurate. 3 steps to follow when converting time for payrollīusinesses can use various methods to convert hours and minutes to decimal hours when preparing payroll. Want to learn more about accurately recording billable hours?Ĭheck out our guide on tracking the billable hours of employees.
However, they’ll still need to convert time when calculating overtime hours and overtime pay. Now, firms that hire salaried employees won’t have this issue for paying for the regular hours.
Decimal time can help prevent this through standardization. On the other hand, if inaccurate calculations lead to overpayment, the firm will bear unnecessary expenses. Decimal time conversion also helps companies minimize errors and avoid problems arising from incorrect time calculations.įor example, if work time is inaccurately calculated during payroll and the total pay is a lower amount of compensation, hourly employees can take legal action against the business. This requires conversion into decimal form since pay rates can’t be calculated off hours and minutes. The manager needs to accurately calculate the payable amounts for each hourly employee, either by rounding off time or using actual hours. For example, in an 8 hour day, one employee might work for 7 hours and 49 minutes, while another employee works for 8 hours and 23 minutes. While not every business may keep track of employee hours, timesheet conversion is essential for companies that hire hourly employees.Įmployees don’t work perfect hours. If your organization uses military time (24 hour clock), timesheet conversion will involve converting military time into standard hours before converting it to the decimal format. Once all employee time is converted from standard hours to decimal time, the decimal time is multiplied by the respective wage rates, and taxes are subtracted to obtain the final amount. This helps companies handle the payroll process easily since all their time records follow a standard format after conversion. Timesheet conversion is the process of converting hours and minutes into decimal form. 3 Steps To Follow When Converting Time For Payroll.(Click on any link below and jump to a section of your choice)
#POSTAL TIME CLOCK CONVERSION HOW TO#
We’ll also show you how to use time tracking tools to convert hours and minutes into decimal form with ease. In this article, we’ll tell you why timesheet conversion is important and how you can convert time for the payroll process. However, many firms have trouble with accurately calculating decimal time, resulting in problems when compensating employees. Turning standard tracked time (hours and minutes) into decimal time makes payroll calculation a lot easier for companies. Timesheet conversion is essential for businesses that track employee hours.
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