Each week on payroll day do you convert Bob’s 28 hours and 12 minutes worked to a decimal value so that you know how much to pay him? And then do the same for 15 other employees? Your head probably hurts just thinking about it.
In our new series, Problem Solving, we are addressing common issues that companies face when managing remote, hourly workers. We will continue our series today with this nagging issue of manually calculating payroll.
Three years ago we posted a blog called Timekeeping 101: Minutes and Decimal Hours in which we provided a chart that converted minutes to decimals – because who wants to do that manually? We had no idea how popular that post would become. Is it because your small business uses handwritten time cards to track time for hourly workers, and payroll companies require the time to be in decimal format? Or maybe you do your own payroll and need to make the correct calculation. It’s easy to multiply 28.20 x $9.25, but 28 hours and 12 minutes x $9.25, not so much.
If you are one of these companies, then maybe it’s about time to ‘convert’ to an automated timekeeping system that will do this work for you. Our reports show time in both hours:minutes and decimal format – great for your employees, and perfect for your payroll calculations. As an added bonus, literally, your company can save 2-6% on payroll by capturing accurate time of your employees’ work shifts.
And you can hopefully enjoy a headache-free payroll day.