Payroll Hours Calculator
Total employee hours for payroll in seconds. Round punches to the nearest 15 minutes (or 5 or 6), get decimal hours ready for your payroll software, and check gross pay.
How payroll rounding works (the 7-minute rule)
Federal rules allow employers to round punch times to the nearest 5 minutes, 6 minutes (a tenth of an hour) or 15 minutes, as long as the rounding is neutral and does not, over time, cut the hours employees are paid for.
With 15-minute rounding, punches 1 to 7 minutes past a quarter hour round down, and 8 to 14 minutes past round up. That is why it is called the 7-minute rule.
| Actual punch | Rounded (15 min) |
|---|---|
| 8:07 AM | 8:00 AM |
| 8:08 AM | 8:15 AM |
| 4:52 PM | 4:45 PM |
| 4:53 PM | 5:00 PM |
Example
An employee punches in at 8:07 AM and out at 4:52 PM with a 30-minute unpaid lunch. Rounded to 15 minutes, that is 8:00 AM to 4:45 PM = 8 hours 45 minutes, minus 30 minutes = 8.25 payroll hours.
Most payroll software asks for hours in decimal. 8 hours 15 minutes is 8.25, not 8.15. Use the hours to decimal calculator to check any conversion.
TimeCardPal gives estimates for planning and checking pay. It is not legal, tax or payroll advice. Overtime rules vary by state and job type; check with your state labor department or a payroll professional for your situation.
Frequently asked questions
How do I calculate payroll hours?
For each day, subtract time in from time out and remove unpaid breaks. Add the days for the week, then convert to decimal hours by dividing minutes by 60.
What is the 7-minute rule?
When rounding to the nearest 15 minutes, 1 to 7 minutes past the quarter hour round down and 8 to 14 minutes round up. For example, 8:07 becomes 8:00 and 8:08 becomes 8:15.
Is rounding employee time legal?
Federal rules allow rounding to the nearest 5, 6 or 15 minutes if it is applied evenly and does not underpay employees over time. Some states are stricter, so check your state's rules.
Why do payroll systems use decimal hours?
Pay is hours times rate, and that is easiest with decimals. 7 hours 30 minutes is 7.5 hours, so at $20 an hour the pay is $150.
Can I export hours for payroll?
Yes. Click Download CSV to save each day's hours (h:mm and decimal) plus weekly totals, then open it in Excel or Google Sheets.