How To Calculate Time Sheets

The amount of time spent by a worker for his job is recorded in the timesheet. It is the human resources department or similar department's job to calculate the number of hours spent by the company's workers using the time sheets. But even if you don't work in this department, knowing how to calculate your number of hours at work is very important. Of course, you don't want to be paid less than what you are supposed to get.

Below are the steps you should do when calculating time sheets:

  • Compute the number of hours in a day. How many hours did the employee work in that specific day? Follow the company's policies when computing this. For instance, round off to the nearest hour or half an hour the time if that's the company's policy. So, if the employee time in at 8:16am, then his time in should be recorded as 8:30am.

Count the number of hours he worked in a day. Use the example below to understand the computation:

Time in: 8:16am

Time out: 12:13pm

Time in: 1:10pm

Time out: 5:10pm

With the example above, the employee worked for 7 hours and 57 minutes or almost 8 hours.

Compute the number of hours that the employee worked for all the days within the payment period. Refer to the company's policy for the salary period when doing this.

  • Get the hourly rate for the employee. How much does the company pay the employee per hour? If you don't know the rate, then simply compute it from the gross monthly salary. For example, if the employee's gross salary every month is $2,000, then divide that to 22 days and to eight hours.

$2,000 / 22 = $90.91

This is the employee's salary everyday. Divide this to eight and you'll get $11.36/hour rate.

The computation above is only applicable for a five-days-a-week and eight-hours-a-day work. Count the number of working days per month of your company and how many hours the employee should be working in a day. Use those figures to get the hourly rate.

  • Multiply the hourly rate to the number of hours per day. Compute how much the employee made in a day based on his number of hours and his hourly rate. That will be his payment for the day. If his hourly rate is $20 and he worked for 7 hours within the day, then the employee made $140 during that day. Compute all the days with the hourly rate to get the salary for all the days within the payment period.
  • Get the sum of the payment for all the days. Add the employee's payment for all the days within the payment period. The sum is the employee's gross salary. Tax, insurances, and other necessary deductions have to be made first to get the net salary.

The steps above are the traditional ways of computing timesheets. In our more modern time, doing this over and over again is not necessary anymore. A simple setup in MS Excel file can already compute all the employees' salary with just a click. The only tedious part is entering the needed data. But at least, now you know how to do it the brick-and-mortar way. You'll never know when this skill might come in handy.


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