Adding up hours worked is an essential process for employers and employees alike, as it helps to calculate wages, track time spent on projects, and ensure compliance with labor laws. The process can seem complicated, especially when dealing with various shifts, breaks, and overtime regulations. However, with a systematic approach, you can quickly and accurately tally hours worked.
First, start by collecting timesheets or time records. Gather your employees’ timesheets or time records, which document their hours worked. These records can be on paper, digital, or managed through time-tracking software. Ensure that they are accurate and up-to-date.
Convert time to decimal format to make calculations easier. To do this, divide the number of minutes by 60 and add the result to the hours. For example, if an employee worked 8 hours and 45 minutes, the calculation would be 45 ÷ 60 = 0.75, and the total time worked would be 8.75 hours.
Next, calculate daily hours for each employee by summing up their hours worked per day. Be sure to account for any breaks that are unpaid, subtracting the appropriate time from the total hours worked.
To add up weekly hours, calculate the total hours worked by each employee for the entire week. This is done by adding the total daily hours calculated in the previous step. If applicable, calculate overtime hours based on local labor laws or company policies. Overtime is typically paid in the United States for any hours worked beyond 40 hours per week.
Maintain clear and accurate records of hours worked, overtime, and any discrepancies or adjustments. Not only will this help with payroll calculations but it will also protect your company in case of audits or disputes.
