How to calculate minutes for payroll

To calculate minutes for payroll, you need to determine total hours and minutes, convert minutes to decimals, and multiply the calculated time by the pay rate. Here is a closer look at each of these important steps in calculating minutes for payroll:

• Determine total hours and minutes

When determining total hours and minutes, you can either use actual hours worked or round hours worked for each employee:

Actual hours worked

When calculating actual hours worked, you need to have the total hours and minutes for each employee during the pay period on hand. Add the hours together. Then add the minutes together. Then convert the minutes into one hour or multiple hours and the remaining minutes. Then add the converted hours and minutes to your employee's total number of hours.

Rounding hours

The federal government allows employers to calculate pay using rounded hours. According to the law, you are only allowed to round an employee's work time to the nearest quarter of an hour. Depending on the times your employees clock in, you might have to round up or down to determine the correct amount of working hours.

• Convert minutes to decimals

To convert minutes to decimals you must divide an employee's minutes by 60. If you are looking for a quicker way to convert minutes to decimals, you can use a payroll time conversion chart.

• Multiply the calculated time by the pay rate

Once you convert your employees' time, you can then determine how much you owe your employee for pay. To find each individual employee's gross compensation multiply their pay rate by their time (in decimal time).

Here's an example for further illustration. If your employee worked 30.25 hours and they earn $10.00 per hour, the equation looks like this:

$10.00 x 30.25 hours = $302.50

This means your employee's total wages before any deductions or payroll taxes are $302.50.