How to Calculate Work Hours for Payroll (With Overtime)

Learn how to calculate work hours from clock-in/out times, handle overtime, and estimate gross pay. Includes a free time card calculator with weekly timesheet.

The Formula

Hours Worked = Clock Out − Clock In − Break Time

Example: Clock in at 8:00 AM, clock out at 5:00 PM, 30-minute lunch break:

  • Total time: 9 hours
  • Minus break: 9 − 0.5 = 8.5 hours worked

Calculate Your Hours

Track your full week, overtime, and estimated pay:

计算器 "time-card-calculator" 未找到

Converting Time to Decimal Hours

Payroll systems use decimal hours, not hours:minutes. Here's how to convert:

Decimal hours = hours + (minutes ÷ 60)

Time WorkedDecimal Hours
7 hours 15 min7.25
7 hours 30 min7.50
7 hours 45 min7.75
8 hours 0 min8.00
8 hours 15 min8.25
8 hours 30 min8.50
8 hours 45 min8.75
9 hours 0 min9.00

Minutes to Decimal Quick Reference

MinutesDecimalMinutesDecimal
5.0835.58
10.1740.67
15.2545.75
20.3350.83
25.4255.92
30.50601.00

Overtime Calculations

Federal Rules (FLSA)

Under the Fair Labor Standards Act:

  • Overtime threshold: 40 hours per week (federal)
  • Overtime rate: 1.5× regular pay (time and a half)
  • Double time: Not required federally, but some states mandate it

Daily vs Weekly Overtime

StateRule
Most statesOvertime after 40 hrs/week
CaliforniaOvertime after 8 hrs/day AND 40 hrs/week
AlaskaOvertime after 8 hrs/day AND 40 hrs/week
ColoradoOvertime after 12 hrs/day OR 40 hrs/week
NevadaOvertime after 8 hrs/day (if hourly rate < 1.5× min wage)

Overtime Pay Example

Weekly hours: 45 hours at $20/hr

TypeHoursRatePay
Regular40$20.00$800.00
Overtime5$30.00 (1.5×)$150.00
Total45$950.00

Handling Special Situations

Overnight Shifts

If you clock in at 10:00 PM and clock out at 6:00 AM:

  • 10:00 PM to midnight = 2 hours
  • Midnight to 6:00 AM = 6 hours
  • Total: 8 hours

Our calculator handles this automatically.

Rounding Rules

Many employers round to the nearest quarter hour (15 minutes):

Actual TimeRounded To
8:01 - 8:078:00
8:08 - 8:228:15
8:23 - 8:378:30
8:38 - 8:528:45
8:53 - 9:079:00

The 7-minute rule: round down for 1-7 minutes, round up for 8-14 minutes.

Break Time Laws

StateMeal BreakRest Break
FederalNo requirementNo requirement
California30 min (after 5 hrs)10 min per 4 hrs
New York30 min (after 6 hrs)No requirement
Washington30 min (after 5 hrs)10 min per 4 hrs
Colorado30 min (after 5 hrs)10 min per 4 hrs

Paid vs unpaid breaks: Rest breaks (under 20 min) are typically paid. Meal breaks (30+ min) are typically unpaid if you're completely relieved of duties.

Weekly Timesheet Example

Here's a typical work week calculation:

DayInOutBreakHours
Mon8:0017:0060 min8.00
Tue7:3017:0030 min9.00
Wed8:0017:3060 min8.50
Thu8:0017:0045 min8.25
Fri8:0016:0030 min7.50
Total41.25

At $25/hr with overtime after 40 hours:

  • Regular: 40 × $25 = $1,000
  • Overtime: 1.25 × $37.50 = $46.88
  • Gross pay: $1,046.88

Gross Pay vs Net Pay

Your time card calculator shows gross pay (before deductions). Common deductions include:

DeductionTypical Amount
Federal income tax10-37% (depends on bracket)
Social Security (FICA)6.2%
Medicare1.45%
State income tax0-13% (varies by state)
Health insuranceVaries
401(k)Varies

Rough estimate: Take-home pay is typically 70-80% of gross pay.

Key Takeaways

  • Hours worked = clock out − clock in − breaks
  • Convert to decimal hours for payroll (divide minutes by 60)
  • Federal overtime: 1.5× pay after 40 hours/week
  • Some states (like California) also have daily overtime rules
  • Track breaks separately — meal breaks are usually unpaid
  • Gross pay ≠ take-home pay (expect 20-30% in deductions)