Processing payroll needs transcribing the time cards and opening up likely transcription mistakes. Time clocks have been utilized in the workplace for ages, helping organizations monitor the amount hourly employees ought to be paid. The more workers there are, the more difficult the payroll and the harder it is for anybody to realize any issue if a mistake happen. Some of the time a business can grow so fast that payroll is ready for time clock before the organization’s management notices it. Regardless of whether you are calculating payroll or just double-checking your pay, this task needs little calculation you might not have utilized since grade school. In any case, if time cards are electronically stamped, or filled out manually, the calculation procedure is the same. Follow these 5 simple steps on how to calculate time cards:
- Change over any standard hours on the time card to a 24-hour clock, or military time. The quickest and least demanding technique to change over the hours is to add 12 to the hours for all noon times. For instance, a 2 p.m. sign-out would be 1400 in a 24-hour cycle.
- Subtract the beginning hour from the ending hour to get the total hours worked all through the day. For instance, on the off chance that you begin your workday at 9 a.m. and end at 5 p.m., 17 – 9 equals an 8-hour day. Decrease the total by any to be paid lunch or break times. With an hour to be paid for lunch, the work day equals seven hours.
- Sum up all of the hours for the week to get the total hours for weekly payroll. For instance, two 9-hour days, 8 hours and 6 hours in one week equals thirty-two hours all through the week.
- Multiply the hours worked by the hourly rate to decide net pay. Make a run-down for extra time hours by multiplying by time and a half. A thirty-two hour week at $12 every hour equals $384.
- Estimate any extra time pay. Extra time is regularly paid at a rate of time and a half, or 1.5 times the hourly rate for a considerable length of time worked past 40 every week. For 10 hours of extra time at a base rate of $12, the extra time rate would equal 1.5 x 12, or $18, for an aggregate of $180 in extra time pay. In the event that your state requires extra minutes pay for each hour worked past eight every day, decide the extra time hours once a day, computing time and a half on all hours more than eight each day.
With the modern time cards, how to calculate time card for payroll is easier. The payroll clock records all payroll data and sends it to a central file, taking out transcription mistakes and delays. This does not just decrease the workload for payroll employees who must manually do the transcribing with manual time-clocks; it lessens the problem of managing employee complaints when mistakes in payroll do happen due to manual transcription. Computerized transcription wipes all these problems.