For this to work, the employer gives each employee a time card for the pay period. This device stamps the time and date onto a paper timecard. This also can be a drain on productivity, since you or someone on your team will always need to review these time cards and add up the hours worked for every employee. Time theft can be a major problem with the pencil and paper method since it’s difficult to ensure all the hours employees report are accurate. Pencil and paper might seem like an easy place to start, but it isn’t right for all businesses or workers. Let’s explore each one of these options in more detail. These are some acceptable ways to track time: Department of Labor provides guidelines to help you track employee hours accurately. When you multiply that number by an employee's hourly wage, the result is the amount you’ll pay.īelow, you’ll find a chart to help you make minutes to decimal conversions. After that, multiply the time worked by wage to find the gross pay.įor example, if an employee works 8:30 minutes, that’s 8.5 hours after decimal conversion. To determine the employee wage, you’ll need to convert hours and minutes into decimal format. ![]() Using Hours Worked to Calculate Gross Wage ![]() Once you’ve done that, you can go on to calculating wages. Make sure you enter all the right values for hourly rates and an overtime rate if you have one. You can use software to streamline the process of calculating hours worked. How to Calculate Employee Hours Using Software Bad data costs businesses $ 12.9 million per year according to a report from Gartner. It’s critical to ensure your math is accurate, as any human error can lead to massive costs. You have the actual hours and minutes worked for the day.Next, subtract the start time from the end time.Convert all times to a 24-hour clock ( military time ):.Let’s use a start time of 8:45 AM and an end time of 3:45 PM as an example. Example of how to calculate total hours workedįirst, you’ll need a start and end time. From there, you can find the total for payroll. To figure out how many hours employees work, you need a process to collect this information from workers before each pay period. Example of how to calculate total hours worked Once work hours are recorded, the employer will need to tally up the totals for payroll. Some employers, require their employees record their hours on paper, while others use a punch clock system to log hours. The most common involve recording start time and end times for hours worked. There are various methods for calculating employee hours worked. There are a couple of different methods for calculating hours worked. How do you make sure you’re doing it the right way, paying your employees the right wage, and protecting your net income from errors? Consider this your bite-sized guide to calculating hours worked. ![]() And if you aren’t properly tracking the hours employees work, time wreaks havoc on your bottom line.
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