How to Calculate Work Hours for Payroll
When you are calculating the number of hours worked to determine how much you owe your employees on their paycheck, you must make sure you are paying them at the proper rate. Any hours over 40 worked each week must be paid at 1.5 times the standard rate. Many companies also offer similar bonuses for employees who have to work on holidays. Finally, make sure you include any paid vacation or sick days in the work hours for the payroll.
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Instructions
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1
Add the number of regular work hours, vacation hours and sick hours that are to be paid to the employee. Multiply this number by the standard hourly wage. For example, if the total number of hours was 40 and the standard hourly wage is $10, you would pay your employee $400.
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2
Total the number of overtime hours by subtracting 40 from the total number of regular hours worked. If the number is 0 or less, the person has no overtime. If the number is greater than 0, multiply it by 0.5 and then multiply by the standard hourly wage. For example, if an employee worked 5 hours of overtime and the standard hourly wage is $10, you pay him an additional $25.
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3
Total the number of holidays worked if your company pays a higher hourly rate. Subtract 1 from the multiplier for holiday hours and then multiply the number of holiday hours worked times that number. For example, if your company pays 2.5 times the standard pay rate for holiday hours works, subtract 1 from 2.5 and multiply that by the standard hourly wage to determine how much extra pay should be given to the employee.
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4
Determine the total paycheck for the employee by adding the amounts calculated in steps 1, 2 and 3.
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Tips & Warnings
This system calculates the bonus pay for overtime and holiday work as an addition to pay. For example, if you worked 5 hours of overtime, this system calculates that at 5 hours at regular pay plus 5 hours of 50 percent bonus pay. You can also calculate the overtime pay by not including it in regular hours and simply multiplying it by 150 percent and getting the same pay amount.
