How to Calculate and Convert Payroll Hours
Determining payroll hours can be confusing if you are unfamiliar with the task. Besides figuring the hours, there are other considerations, such as whether the employee is hourly or salaried and the pay frequency, be it weekly, biweekly or semi-monthly. Converting the payroll hours is also necessary.
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Instructions
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Calculate hourly employees' time based on their timesheet. Example: the employee's time for Monday reflects: in---6 a.m.; lunch---12 to 1 p.m.; out 3 p.m., equaling nine hours. Deduct one hour of unpaid lunch. The employee should be paid for eight hours for that day.
Calculate overtime hours, which is next to the regular column, and is paid at time and a half. Example: the employee's pay rate is $11/hour. His punches for Monday to Friday reflect the following: in---7 a.m.; lunch---11:30 a.m. to 12:30 p.m.; out---7 p.m., equaling twelve hours each day. Deduct one hour for unpaid lunch every day. Therefore, the employee's hours for the week is fifty-five hours (11 hours x 5 days). His gross pay is 40 x $11 = $440 regular pay plus 15 x $16.50 ($11 x 1.5) = $247.50 overtime pay.
Note the employee must work forty regular hours before he can receive overtime pay for a given week.
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Pay hourly employees' vacation, sick or personal time at their regular pay. Example: the employee's regular pay rate is $10. His timesheet includes 8 vacation and 8 sick hours. Calculate as follows:
8 vacation hours x $10 = $80 vacation pay
8 sick hours x $10 = $80 sick pay -
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Convert military time to regular time for hourly employees. Example: military time--in--900; lunch in--1300; lunch out--1400; out--1900 equals regular time--in--9 a.m.; lunch in--1 p.m.; lunch out--2 p.m.; out--7 p.m.
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Convert decimals to minutes. Use the following calculation when converting decimals to minutes:
0 - .25 = 15 minutes
.26 - .50 = 30 minutes
.51 - .75 = 45 minutes
.76 -.99 = 60 minutesAlways round up hourly employees' hours to the nearest quarter hour. Example: 6:03 a.m. equals 6 a.m.; 1.06 p.m. equals 1 p.m.; 3.12 p.m. equals 3:15 p.m.
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Pay salaried employees at their normal wage each pay date. Salaried employees are generally paid the same wage every pay period unless they have received a pay increase or decrease, or you are prorating their pay. When docking a salaried employee's pay or to pay him based on a prorated amount, figure his daily rate. Example: a salaried employee used an excess vacation day and the employer has decided to dock him for that day. To arrive at his daily rate, calculate using the following example, which is based on a weekly pay cycle:
$55,000 (salary) / 52 (weekly) pay periods / 5 (days) = $211.54 (daily rate).
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