How to Calculate Total Work Hours & Pay
Payroll software calculates hours in decimals rather than hours and minutes. To convert minutes into decimal hours, divide the minutes worked by 60.
Time Card Formulas:
1. Decimal Break Hours = Unpaid Break Minutes ÷ 60
2. Net Hours = Gross Worked Hours - Decimal Break Hours
3. Regular Hours = Minimum(Net Hours, 40)
4. Overtime Hours = Maximum(Net Hours - 40, 0)
5. Gross Pay = (Regular Hours × Base Rate) + (Overtime Hours × Base Rate × Overtime Multiplier)