Payroll by hand and Minutes

[Unregistered]

Hello! I have fallen into an office manager position for a small company. Hard to believe, I know, but we do our payroll by hand. I've been doing it the way that I was taught by the previous office manager, for example,
Let's say an employee punches in at 7am, out at 11, back in at 12 and out for the day at 5. Let's say I use military time, and this formula: 17:00-12:00+11:00-07:00 =hours worked. I take the resulting figure and multiply it by rate of pay. Assuming that no employee punches in and out exactly on the hour, and we are a very lax company, there is always an "odd" number of minutes involved. It occurred to me that there are 60 minutes in an hour, and my calculator measures by 100's, not in minutes. I hope this makes sense. I think this means my calculations are inaccurate. Let's say that I do the calculating the way I mentioned, and the resulting figure is 8.73. How does this translate into minutes? It doesn't seem to be nine hours and 13 minutes, but it's also not eight hours and seventy three hundredths. What is it? What do I then do with this figure to make the employee's pay accurate? Can somebody help me, let's say the employee is making 10$ per hour.

[Robert Fogt]

You are getting decimal hours.

8.73 hours =
8 hours + 0.73 hours =
8 hours + (0.73 * 60) minutes
8 hours + 43.8 minutes

Though in your case, to calculate their pay, you'd multiply their hourly rate by the decimal hours.
8.73 hours * 10 $/hour = $87.30

[Robert Fogt]

You may also be able to find a few tools here:
http://www.paycheckcity.com/

[Sherrie]

I just wanted to see if there was a simple formula to caculate hours and minutes. For example if I came in at 8:07am went to lunch at 12:23p to 1:32p and clocked out and went home at 5:06p. How would i caculate that into hours.

[Unregistered]

If you are working and getting paid for 9 hours a day then it doesn't matter what the time clock reads. The end result is that you worked 9 hours and you got paid for 9 hours of work. You said that the company was a lax company, which i take to mean that you do not have to hit the time clock right on the hour. Which would be impossible if you have several people trying to clock in / out at the same time. Now, if some people do not work the entire day, be it coming in late or going home early, then i see where you would need to pin point their hours. Otherwise i think you are trying to make the time keeping to hard.

[Ursus Blue]

Sherrie,

Is this something you do often? It would be rather easy to create an excel spreadsheet time card for you.

Sorry can't be more helpful with an easy way, I looked at your times and saw the difference

8:07am to 12:23pm is 4hr 16 min
1:32pm to 5:06pm is 3hr 34 min

THerefor you made your 8 hours.




Robert, I don't believe you read the unregistered's post correctly. He/she stated that they do the math based on military time.

17:00-12:00+11:00-7:00 to equal the hours worked, in this case 9.

EDIT ------ Actually in typing this out, I am afraid for anyone who works at this establishment if this is how payroll is figured.

To carry the logic further, based on what the unregistered wrote, if they use their calculator to do the time card math based on a 24 hour clock, someone is going to lose out.

Example, employee returns from lunch at noon and leaves to go home at 4:48

Using their post below, they would do as follows 16:48-12:00 = 4:48 or 4 hours and 48 minutes.

BUT! if that same employee came in at 6:30 am and went to lunch at 11:00 am, do you suppose they are doing this?
11:00-06:30 and treating it like this on their calculator 11-6.3, which would give them 4.7 hours (Which comes out to 4 hours and 42 minutes) as opposed to the actual 4hours and 30 minutes the employee worked?

What is making me think they are doing this is that he/she states..."Let's say that I do the calculating the way I mentioned"

Scary.....

Sorry Sherrie, didn't mean to hi jack your thread

[Unregistered]

You are getting decimal hours.

8.73 hours =
8 hours + 0.73 hours =
8 hours + (0.73 * 60) minutes
8 hours + 43.8 minutes

Though in your case, to calculate their pay, you'd multiply their hourly rate by the decimal hours.
8.73 hours * 10 $/hour = $87.30
thank you so much this is a really big no HUGE help

[candylady11]

I am working as a contractor and now negotiating with my employer to pay me on percentage basis. On this he is asking me to pay the payroll tax to run the paychecks. He is offering me 10% of the earning against this payroll tax and I am bit confused that this tax is really this high? I need your great help. Please help me. Thanks in advance for help.

[JohnS]

I just wanted to see if there was a simple formula to caculate hours and minutes. For example if I came in at 8:07am went to lunch at 12:23p to 1:32p and clocked out and went home at 5:06p. How would i caculate that into hours.

Not simple. Mixed base math is a problem, you can do hours and minutes separately, then borrow and carry as required recognizing the 60 minutes is 1 hour.

Or you can change the minutes to an hour fraction by dividing by 60. Take 8:07 am, that's 8 hours and 7 minutes, but 7 minutes is 7/60 = 0.117 hrs, so it is 8.117 hours. For pm hours, 1 pm or after, add 12 hours to convert to military time, so
8:07 am -> 8.117
12:23 pm -> 12.383
1:32 pm -> 13.533
5:06 pm -> 17.100
There will be some rounding error, I recommend carrying a guard digit and using three figures for the decimal.

You worked (17.100-8.117) - (13.533-12.383) = 7.833 hrs. Multiply the 0.833 part by 60; it is 50 minutes, so you worked 7 hours 50 minutes.

[Unregistered]

i take care of of payroll for a very large company.

I use this this to help me

15 min =.25
30 min =.50
45 min = .75
so when some sneds an adjustment in for 5 hours and 34 min i divide the 34 min by 60 which would leave .57 so it would be 5.57 hours.

[Unregistered]

You might try a simple software package such as Employee Time Punch, employeetimepunch.com. They are cheap and will handle time by decimal instead of minutes.

[Unregistered]

**Minutes Hours ** Minutes Hours
1 = 0.01 31 = 0.51
2 = 0.03 32 = 0.53
3 = 0.05 33 = 0.55
4 = 0.06 34 = 0.56
5 = 0.08 35 = 0.58
6 = 0.1 36 = 0.6
7 = 0.11 37 = 0.61
8 = 0.13 38 = 0.63
9 = 0.15 39 = 0.65
10 = 0.16 40 = 0.66
11 = 0.18 41 = 0.68
12 = 0.2 42 = 0.7
13 = 0.21 43 = 0.71
14 = 0.23 44 = 0.73
15 = 0.25 45 = 0.75
16 = 0.26 46 = 0.76
17 = 0.28 47 = 0.78
18 = 0.3 48 = 0.8
19 = 0.31 49 = 0.81
20 = 0.33 50 = 0.83
21 = 0.35 51 = 0.85
22 = 0.35 52 = 0.86
23 = 0.38 53 = 0.88
24 = 0.4 54 = 0.9
25 = 0.41 55 = 0.91
26 = 0.43 56 = 0.93
27 = 0.45 57 = 0.95
28 = 0.46 58 = 0.96
29 = 0.48 59 = 0.98
30 = 0.5 60 = 1

[Unregistered]

Your last line was the most helpful and the method I have used for years.

[Unregistered]

Ok I have a new administrator she is having a hard understanding the conversing she believes that payroll is done minute by minute I have try to explain that the minutes are converted into a decimal. How can I convince her otherwise, I have been doing this for years I need her to understand...?

[Unregistered]

i take care of of payroll for a very large company.

I use this this to help me

15 min =.25
30 min =.50
45 min = .75
so when some sneds an adjustment in for 5 hours and 34 min i divide the 34 min by 60 which would leave .57 so it would be 5.57 hours.

i need more help on this.

[kaethy]

A manual payroll system requires painstaking application; the entire payroll process is done by hand. The likelihood of errors can be high with this system; therefore, manual payroll is best if you have few employees, such as fewer than 10. The U.S. Department of Labor mandates employers to pay employees appropriately for time worked. The IRS and the state require employers to fulfill certain payroll tax obligations. These regulations apply, even if your payroll is manual.
:)


Pay applicable workers based on their timekeeping data. Most likely you require hourly workers to use a time clock or to complete weekly time sheets. Pay them according to what the timekeeping system indicates.



For instance, say the pay schedule is biweekly and the employee earns $9/hour. The time sheet for Monday to Friday for two weeks shows: in–8:30 a.m., lunch in–1 p.m., lunch out–2 p.m., out–6:30 p.m. Subtract one hour for unpaid lunch, which leaves him with 9 hours for each day--45 hours total for each week (9 hours x 5 days). Pay the first 40 hours worked for each week at straight time. Pay overtime hours (those above 40) at 1½ times the employee’s straight time rate.:)



Regular calculation: 80 hours (40 hours x 2 weeks) x $9/hour = $720.

Overtime calculation: 10 hours (5 hours x 2 weeks) x $13.50 ($9/hour x 1.5) = $135.

Total biweekly pay = $720 + $135 = $855.
:)
2

Figure salary compensation. Say the employee receives an annual salary of $47,000 and gets paid weekly.

Calculation: $47,000 / 52 weeks = $903.85, weekly salary.



Not all salaried employees are exempt from overtime; the DOL narrowly defines this category. Check with your state labor board (see Resources) to know which employees are exempt from overtime.

3

Calculate involuntary deductions. Involuntary deductions are also called statutory deductions. They include payroll taxes, such as federal income tax, state income tax, Social Security tax and Medicare tax. Consult the IRS Circular E for federal payroll tax regulations and your state taxation agency (see Resources) for state payroll tax regulations.



Withhold federal income tax based on the Circular E’s withholding tax tables and the employee’s W-4 form. Withhold Social Security tax at 6.2 percent of gross income, up to $106,800 for the year. Withhold Medicare tax at 1.45 percent. Consult your state withholding tax tables (see Resources) and the employee’s state income tax form to determine state income tax withholding. Involuntary deductions also include wage garnishments; consult the garnishment paperwork for instructions on how to handle the deduction.

4

Compute voluntary deductions. This includes deductions the employee agreed to, such as parking fees, union dues, and retirement and health benefits. The deduction varies by plan type. Make the deduction based on the employee’s pay frequency, such as medical deduction for one week if paid weekly and retirement contribution for two weeks if paid biweekly.

[Unregistered]

Not simple. Mixed base math is a problem, you can do hours and minutes separately, then borrow and carry as required recognizing the 60 minutes is 1 hour.

Or you can change the minutes to an hour fraction by dividing by 60. Take 8:07 am, that's 8 hours and 7 minutes, but 7 minutes is 7/60 = 0.117 hrs, so it is 8.117 hours. For pm hours, 1 pm or after, add 12 hours to convert to military time, so
8:07 am -> 8.117
12:23 pm -> 12.383
1:32 pm -> 13.533
5:06 pm -> 17.100
There will be some rounding error, I recommend carrying a guard digit and using three figures for the decimal.

You worked (17.100-8.117) - (13.533-12.383) = 7.833 hrs. Multiply the 0.833 part by 60; it is 50 minutes, so you worked 7 hours 50 minutes.

Yes 7hrs50mins is what I calculated as well...good and accurate answer...

[Unregistered]

WOW!! I finally GET IT!! LOL Thnks Everyone!!

[Unregistered]

how do you calulate 22.90 hours

[JohnS]

how do you calulate 22.90 hours

What calculation do you want? There are 60 min in 1 hr, so the 0.90 fraction is
60 min x 0.9 = 54 min
22:54

If you want pay, just multiply 22.90 h times the hourly rate.