How to Calculate Employee Hours Worked
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If you don’t want to do how to calculate overtime pays by hand or invest in payroll software, using a spreadsheet is your best bet. For this pay period, your employee worked 20.25 hours. Converting minutes to decimals for payroll is simple. To do this, you need to gather timesheets or time and attendance records for each employee. If you took a period of leave for a qualifying reason since a year before your start date, figure out which days you took leave.
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$18 per hour is how much per year?
As gig work expands, you’ll likely work with companies who are using tools to make this process easier and mutually beneficial for you and them. So here’s a step-by-step run-through of how to count hours, along with an example. Learn more about Privacy at ADP, including understanding the steps that we’ve taken to protect personal data globally. Today’s digital landscape means limitless possibilities, and also complex security risks and threats. At ADP, security is integral to our products, our business processes and our infrastructure.
How Do I Calculate Hours Worked?
While there are various tools you can use to calculate hours worked (including hours calculators), they all follow similar steps. In short, you need to:
Record the start and end times of each job or workday.Convert the start and end times to a 24-hour format (military time). To do this, add 12 to the afternoon hours (morning hours stay the same). There’s no need to use am or pm as morning/night times will differ. For example, 6 am will become 06:00 hours, while 3 pm will become 15:00.Subtract the start time from the end time to get your hours worked, and also subtract any unpaid breaks.Convert your minutes into the decimal format by dividing them by 60. For example, 6:15 represents 6 hours and 15 minutes. Divide the 15 minutes by 60, and you’ll get 0.25. In this case, the .25 represents 25% of an hour. So 6:15 becomes 6.25.Add up the total hours for the entire pay period.
The California overtime rule requires employees to be paid at least 1.5 times their regular rate of pay for any hours worked beyond 8 in a day or 40 in a week. The overtime rate applies to all non-exempt employees, regardless of the type of industry or occupation. Covered, nonexempt employees must be paid overtime pay at no less than one and one-half times the employee’s regular rate of pay for hours worked in excess of 40 in a workweek. Your annual salary can be calculated by multiplying your hourly rate by the number of hours you work each week and then again by the number of weeks you work each year.
Step 5: Convert to decimal format
If calculating payroll hours manually sounds like a time-consuming process, you can opt for a time tracking software. Introducing time tracking to your team ultimately helps you acquire the most accurate payroll data, and ensures your employees receive adequate pay for their hours worked. Our time card calculator automatically tabulates all work hours and converts them to dollars and cents. The calculator is totally electronic, ridding your business of those cumbersome and error-prone paper time card weekly and monthly reports that get bent, torn, or lost. From the people at Calculator Soup, this free time card calculator keeps track of work hours, breaks and pay on a daily, weekly or monthly basis. It allows multiple breaks per day and can auto-deduct breaks from your total hours worked.
You have not indicated whether you are paid extra for overtime or whether you get a flat monthly salary and are expected to complete your work regardless of the number of hours. If it’s a flat monthly salary, then the hourly rate will vary depending on how many overtime hours you worked. Otherwise, it is two different hourly rates; for example, basic for standard hours, say 40 per week and time and a half for hours over 40. For example, if you want to calculate your hourly rate for the month of August, keep track of all hours worked during that month. Include unpaid hours in your total, such as time spent commuting, buying supplies, or reaching out to customers.