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With the introduction of social media, it has become more difficult for employers to get in contact with their employees. This makes payrolls an impossible task for many companies that are not able to conduct them accurately or keep track of employee attendance.
The “getting paid by the minute calculator” is a tool that helps users convert minutes for payroll. It also includes a free minute conversion chart and template.
It might be difficult to compute compensation for hourly employees who work just a quarter of an hour if you are a company with several hourly workers. You’ll need to know how to convert minutes for payroll if you’re paying workers who work part-time. When calculating pay, failing to convert minutes produces mistakes and adds to the back-end workload. However, if you know how to represent minutes as decimals, it’s straightforward. After converting time worked to decimal form, such as 4.35 hours, multiply by the pay rate to get total earnings payable.
Employer’s Guide on Converting Minutes to Payroll
You must convert minutes worked into decimals to ensure that you are not overpaying or underpaying your staff. You may use payroll software like Gusto, an online time calculator, a free minute conversion chart, or a Google Sheets Minute Conversion Template to do the conversion.
Our free minute conversion chart will show you the decimal equivalent for minutes one through 60, allowing you to quickly and precisely calculate gross pay based on real hours worked.
Pro Tip: You can convert minutes to decimals in three stages for payroll, but you’ll have to choose whether to utilize actual hours worked or hours rounded to the closest quarter, as authorized by federal law. Because rounding might lead you to spend more for salaries and overtime than required, it’s best to utilize real hours. Later in this essay, we’ll show you how.
The processes to convert your workers’ minutes worked into decimal form and dollars to be paid are as follows:
1. Determine the total number of working hours and minutes.
If you use a time-tracking system (pen and paper, time clock, spreadsheet, etc. ), calculating total hours worked is normally simple; but, if your policy requires you to round employee hours to the closest quarter, as the Department of Labor permits, it may be challenging.
Actual Working Hours
Total the hours and minutes between your employee’s beginning and finishing timings for each workday to compute the actual time worked. The timesheet below is an example of the data you’ll need to start before converting minutes to decimal form.
Please note that if your company just has one physical location, adopting a free employee time clock like Homebase may make tracking real hours worked much simpler. Employees may use their phones to clock in and out, and it handles all of the computations and minute conversions.
Timesheet Example
The individual worked 38 hours and 109 minutes or 39 hours and 49 minutes according to the time sheet above.
8 hours + 8 hours + 8 hours + 8 hours + 7 hours + 7 hours = 38 hours
Minutes: 109 minutes = 0 + 6 + 4 + 42 + 57 minutes
To make it simpler to transform minutes into decimals in the following step, you may convert 60 minutes of the 109 minutes to one hour (109 minutes – 60 minutes = 49 minutes; 38 hours + one hour = 39 hours).
Worked Hours Rounded to Quarters
When processing payroll, federal law allows businesses to compute wages using both actual and rounded hours worked. It’s entirely up to you whatever approach you want, but if you go with rounding, you’ll need to know how to round properly to stay in compliance.
Employee time may be rounded to the nearest quarter-hour. A quarter-hour is 15 minutes, and each hour has four of them: 0:15, 0:30, 0:45, and 0:00. You may round if your employee clocks in at a time that is not in a quarter. If the time is between eight and fourteen minutes beyond the previous quarter, you may only round up to the following quarter. You must round back down if your employee’s time is one to seven minutes beyond the previous quarter.
To round hours worked, use the following example from the sample timesheet:
Example: Your employee arrives at work at 8:04 a.m. on Tuesday. He departs around 4:10 p.m., without stopping. It took me eight hours and six minutes to complete the task. The total number of hours worked is eight hours and fifteen minutes.
- Because it is less than seven minutes beyond the previous quarter, 8:04 a.m. must be rounded down to 8 a.m. (8 a.m.).
- Because it’s more than seven minutes beyond the previous quarter, 4:10 p.m. must be rounded up to 4:15 p.m. (4 p.m.).
- The employee’s time sheet would show that he worked from 8 a.m. to 4:15 p.m., which is nine minutes longer than he really did.
The discrepancies in working hours that result from rounding your workers’ hours might mount up over time. It was in the employee’s advantage in our scenario, which meant you’d be paying for more time than was really worked. You’d be paying for an extra 468 minutes or seven hours and 48 minutes of non-working time if you paid for an extra nine minutes three days a week for 52 weeks in a year.
Pro Tip: Because the effect of rounding might vary week to week based on your workers’ work patterns, adopting a policy of rounding hours worked in the hopes of manipulating it in your favor isn’t the greatest option.
2. Decimal to Minute Conversion
It’s as easy as dividing minutes by 60 to convert them to decimals. The good news is that if you utilize our minute conversion chart, you can avoid that step. Simply locate the minutes worked on the chart, somewhere between one and sixty, and the decimal equivalent will appear to the right. The decimal equivalent of one, for example, is 0.02. Add the decimal to the number of hours worked once you have it.
Payroll Conversion Chart (Downloadable)
Let’s take another look at the example time sheet (see below) and convert Tuesday’s real working time to a decimal. The guy has been on the job for eight hours and six minutes. According to the minute conversion table, six minutes equals 0.1. To obtain the total time worked in numeric form, add the decimal to the number of hours worked, as in: eight hours + 0.1 hours = 8.1 hours. Tuesday, the employee worked 8.1 hours.
Timesheet Example
The difference between converting minutes to decimals the incorrect way and the proper way in the two scenarios we just looked at is that you underpay an employee by $3.52. If you make the same error five days a week for 52 weeks of the year, you might owe $915.20 in salary, not to mention extra payroll taxes.
3. Multiply the calculated time by the wage rate.
Now you can determine how much you need to pay your employee using the time you converted to decimal form. Assume the hourly compensation of the employee is $14.25. For the hours worked on Tuesday, you owe $115.43.
8.1 (time in decimal notation) X $14.25 (hourly pay) = $115.43
Check out our post on how to calculate payroll for additional information on payroll calculations.
Conclusion
Converting minutes for payroll, contrary to popular belief, is simple. It all relies on how you monitor working hours, whether you use rounded or real hours spent, and what tools you use to compute. Your primary objective is to convert time worked into decimal form, which you can then multiply by your employee’s pay rate to determine how much you owe in wages.
Gusto keeps track of employee time and attendance and conducts payroll automatically, eliminating the need for laborious computations. Employees may clock in and out using their mobile devices, as well as track hours spent on projects in order to provide a full cost report that includes salary, taxes, and other expenses. Sign up for a free 30-day trial right now.
Gusto is a great place to visit.
The “how to calculate 15 minutes for payroll” is a question that has many answers. The article will give you the basic steps needed to convert your time into money.
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