How to Calculate Timesheet Hours: Breaks, Decimal Conversion, and Overtime

Step 1: Shift Length From Clock Times

Convert both times to minutes since midnight, or to 24-hour format, then subtract. 8:47 a.m. is 8 × 60 + 47 = 527 minutes. 5:12 p.m. is 17:12, or 17 × 60 + 12 = 1,032 minutes. The elapsed time is 1,032 − 527 = 505 minutes, which is 8 hours 25 minutes.

If the shift crosses midnight, add 24 hours (1,440 minutes) to the end time before subtracting. A shift from 10:30 p.m. to 6:15 a.m. is 1,440 + 375 − 1,350 = 465 minutes, 7 hours 45 minutes.

Step 2: Subtract Unpaid Breaks

Subtract unpaid meal breaks, but not short paid rest breaks, which are generally counted as working time under many labor rules. Take 30 minutes off the 505: 475 minutes of paid time, which is 7 hours 55 minutes. Rules about the length, timing, and pay status of breaks vary by jurisdiction and by contract, so check local requirements.

If an employee works through a meal break, the time is generally compensable.

Step 3: Convert to Decimal Hours

Payroll systems multiply hours by hourly pay, so you need decimal hours: divide minutes by 60. 475 ÷ 60 = 7.917 hours, usually rounded to 7.92. Do not write 7 hours 55 minutes as 7.55; the minutes are not hundredths of an hour.

Some employers round clock times to the nearest quarter hour (7.5 minutes either way). Rounding practices must be neutral over time; rules in many places prohibit rounding that consistently favors the employer.

Step 4: Weekly Total and Overtime

Add the daily decimal hours for the week. In many jurisdictions, hours beyond 40 in a workweek are overtime, paid at 1.5 times the regular rate; some also require daily overtime after 8 or 12 hours. Suppose a worker earns $22 per hour and works 46 hours in a week. Regular pay is 40 × $22 = $880. Overtime pay is 6 × $22 × 1.5 = $198. Total gross pay is $1,078.

Exempt salaried employees are generally not entitled to overtime under such rules, but whether a role is exempt depends on duties and salary thresholds, not just on the job title.

Step 5: Check the Result

Compare your total with a rough estimate: five days of about 8 hours each is 40 hours. If your total is far off, find the day that does not fit. Keep original clock records. If you spot an error after payroll is processed, report it so it can be corrected on the next check.

Spreadsheets can automate the process with time-formatted cells and a multiplication by 24 to convert the time difference to decimal hours.

Tips for Employees and Managers

Record start and end times immediately, not from memory. Note break lengths. Agree in advance on rounding rules. Review pay stubs against your own record every period, and keep copies. For managers, make the policy for breaks and overtime clear in writing.