How to Manually Figure Timecards

When running a business it is very important to keep accurate records of an employee's time worked each day, especially when it is used to determine pay for an hourly employee. If you do not want to use a computerized system, and do not want to use spreadsheets on the computer to do these calculations, you can do it manually. You will need to create cards for each employee as well as a master card that has the hours worked each pay period for each of your employees.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Paper
• Pencil
• Calculator

1. Create a table on a separate piece of paper for each of your employees. The table should have several columns. These columns should include the employee's name, the dates for each of the workdays in the particular pay period, and columns for the time he starts, time he punches out for lunch, time punched back in for lunch, and time punched out at the end of the day.

2. Fill in the information for all employees for their daily time, recording on each day that they work. At the end of each day, at the end of that row, write in the amount of hours and minutes they worked.

3. Total the number of hours and minutes worked for each employee at the end of the pay period. You can do this by adding up the totals for each day in the final column.

4. Multiply the number of hours each employee worked by that employee's hourly pay rate. Before multiplying this, convert minutes into a decimal form (divide the minutes by 60) and add that decimal to the full hours worked. Write this down at the bottom of the time card and label it as the amount of money that employee earned during the pay period.

5. Create a master chart that includes each employee's name, their total hours worked for the pay period, their hourly pay rate, and the total amount of money they earned this pay period. This way you don't have to look up each employee's individual pay card when determining how much you owe in payroll for the pay period. Add up the amounts owed to each employee to determine your labor expense for that pay period.

Tips & Warnings

• If you allow for overtime, you will need to multiply any hours worked in the week by 1 1/2 and add it to 40 before calculating your employee's pay for that week.
• Double-check your work, or have someone else that you trust in the company check it as well, especially since you are not using a spreadsheet or computer program to do the math for you.

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