How to Track Converted Minutes for Payroll The employee’s total wages before payroll taxes and deductions are $805.00. Take the employee’s hourly wage rate and multiply it by their decimal time.įor example, if the employee worked 40.25 hours and earns $20 an hour, you would take 40.25 and multiply it by 20. Once you convert the employee’s time, it’s time to calculate how much you need to pay them. Step 3: Multiply Calculated Time by the Wage Rate For example, if an employee works 8 hours and 27 minutes, their rounded hours would be 8.5. For example, if an employee works 8 hours and 6 minutes, their rounded hours would be 8.Įmployee time from 8 to 14 minutes past the previous quarter must be rounded up and counted as a quarter-hour of work time. A quarter of an hour is 15 minutes so you can round to :00, :15, :30, or :45.Įmployee time from 1 to 7 minutes past the previous quarter can be rounded down. With rounded hours, you can round the employee’s time to the nearest quarter of an hour. If you choose this method, federal law states that you must practice accurate rounding or risk violating FLSA minimum wage and overtime pay requirements. You also have the option to convert minutes for payroll by using rounded hours. 95 minutes – 60 minutes = 1 hour and 35 minutesĪs such, the employee worked a total of 40 hours and 35 minutes for the week.Total minutes: 15 + 20 + 10 + 50 = 95 minutesĬonvert 60 minutes of the employee’s total 95 minutes to equal one hour.Next, add up the total minutes the employee worked. Only add the hours, you will add the total minutes separately. To calculate total hours worked, add up the total number of hours across the five days.
In this example, the employee doesn’t take lunch breaks, so he doesn’t clock in and out for lunch. Let’s go over an example timesheet for a weekly hourly wage employee. You can find these exact numbers by gathering timesheets or time and attendance records for each of your employees. To calculate your employee’s actual hours worked, you’ll need the total hours and minutes they worked for the payment period. Step 1: Calculate Total Working Hours and Minutesĭecide if you want to use actual hours worked or rounded hours worked in your payroll conversion calculations. No matter which method you choose, learning how to convert minutes for payroll involves three quick and easy steps. We recommend using the actual hours worked because rounding can lead to overpaying or underpaying your employees in the long run. You can either use the actual hours worked or round the hours to the nearest quarter. There are two strategies when you want to convert minutes for payroll. How to Convert Minutes for Payroll in 3 Steps It also provides accurate wage distribution to ensure your employees aren’t overpaid or underpaid. Converting their time worked to exact minutes prevents a lot of payroll problems in the future. The following chart shows how minutes are converted to a fraction of an hour by dividing the number of minutes by 60.If you own a small business with multiple hourly workers, it’s essential to convert minutes for payroll when your employees work partial hours. For example, if an employee worked one hour and 20 minutes, you would type 1.333 in the Duration (Hours) field. When you enter the amount of hours that an employee has worked in a time sheet, you must enter the minutes as a fraction of an hour. This article describes how to enter fractions of an hour in time sheets in Microsoft Office Small Business Accounting, in Microsoft Office Accounting Professional, and in Microsoft Office Accounting Express. How to enter fractions of an hour in time sheets in Small Business Accounting, in Accounting Professional, and in Accounting Express INTRODUCTION