ANSWERS: 1
  • Employers typically require hourly workers to record their hours worked on a weekly time card or to punch a time clock, which prints the hours on the time card. To ensure employees are paid accurately, the payroll personnel must calculate the time cards. When performing the calculation, the individual must apply good mathematical skills and an understanding of payroll processing.

    Pre-calculation

    If you are performing the calculation for a large company with many departments, separate the time cards by department before attempting to calculate them. If you have only a few time cards to calculate, one stack is sufficient. A time card will generally have the following columns for hours: regular, overtime, vacation and sick/personal. It will also have the days of the weeks listed. Even if the employee or her supervisor has already computed the time card, you must still perform your own calculation to ensure each column total is correct. Ensure the employee and his supervisor or manager signs the time card. If not, return it for the appropriate signatures.

    Regular Hours

    Tally the regular column for each day worked. For instance, say an employee's time for Monday reflects in--8:30 a.m.; lunch in--12 p.m.; lunch out--1 p.m.; out--5:30 p.m. Minus one hour for unpaid lunch and pay the employee eight regular hours for Monday. Compute the regular hours for the other days worked. Add the total regular hours for each day to arrive at the total hours worked for the week. For example, say the employee worked Monday to Friday--eight hours each day. At end of the regular column, put 40 hours (8 hours x 5 days).

    Overtime Hours

    Put overtime hours worked in the overtime column. For example, suppose the employee's punches for Monday to Friday reflect in--9 a.m.; lunch in--1 p.m.; lunch out-- 2 p.m.; out--8 p.m. Minus one hour for unpaid lunch, which leaves him with 10 hours. Pay him for eight regular hours and two overtime hours for each day. His total pay is 40 regular hours and 10 overtime hours. Note that the employee must actually work forty hours for the week to receive overtime pay. For instance, say he has thirty-six regular hours for the week plus six extra hours worked on a specific day, only two hours out of the six extra hours must be paid at his overtime rate because the other four extra hours must be used to make his regular hours amount to forty.

    Benefit Days

    If the employee took vacation, sick or personal days, he should list the hours taken and the corresponding day on the time card. Pay benefit days at the employee's regular pay rate and code them accordingly.

    Rounding and Conversion

    Round up the employee's time to the nearest quarter hour when calculating the time card. Example: 8:13 a.m. = 8:15 a.m. Convert decimals to minutes as follows: .25 = 15 minutes; .26 to .50 = 30 minutes; .51 to .75 = 45 minutes; and .76 to .99 = 60 minutes. Convert military time to regular time. Example: 1300 = 1 p.m.

    Source:

    Spectrum Research: Time Card Calculator

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