How to Calculate Time Sheets

How to Calculate Time Sheets

How to Calculate Time Sheets : Multi-thousand tips to make your life easier.

The amount of time a worker spends on their job is recorded in a timesheet. It is the job of the human resources department or a similar department to calculate the number of hours spent by the company's workers using timesheets. But even if you don't work in this department, knowing how to calculate your own work hours 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 follow when calculating timesheets:

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

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

Time in: 8:16 am

Time out: 12:13 pm

Time in: 1:10 pm

Time out: 5:10 pm

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

Compute the number of hours 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, simply compute it from the gross monthly salary. For example, if the employee's gross monthly salary is $2,000, divide that by 22 days and then by eight hours.

$2,000 / 22 = $90.91

This is the employee's daily salary. Divide this by eight and you'll get an hourly rate of $11.36.

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

• Multiply the hourly rate by the number of hours per day. Compute how much the employee earned in a day based on their number of hours and hourly rate. That will be their pay for the day. If their hourly rate is $20 and they worked 7 hours that day, then the employee earned $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 pay for all the days. Add the employee's pay for all the days within the payment period. The sum is the employee's gross salary. Tax, insurance, and other necessary deductions must 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 no longer necessary. A simple setup in an MS Excel file can already compute all the employees' salaries 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.