Work Hours Calculation
Work hours calculation involves determining the actual time worked, excluding breaks and accounting for overtime rules. This is essential for accurate payroll processing.
Basic Formula: Work Hours = End Time - Start Time - Break Time
Key Components:
- Regular Hours: Standard working hours (typically 8 hours/day)
- Overtime Hours: Hours worked beyond the threshold
- Break Time: Unpaid breaks that don't count as work time
- Rounding: Time rounding rules for payroll accuracy
Overtime Rules
Federal Overtime (US): 1.5x regular rate for hours over 40 per week.
Daily Overtime: Some states require overtime for hours over 8 per day.
Double Time: 2x regular rate for hours over 12 per day or holidays.
Custom Rules: Company-specific policies may vary from legal requirements.
Time Rounding
No Rounding: Exact minutes for precise calculations.
15-minute increments: Round to nearest 15 minutes (most common).
30-minute increments: Round to nearest 30 minutes.
1-hour increments: Round to nearest hour (rare).