For a small business, it is not easy to outrun the routine management processes manually, especially when paying the employees every month. However, there are practices that can be applied to streamline all the essential human resource functions. Such techniques can also ease out the payroll math to make you more efficient in delivering out the payment. While salary math can make you overwhelmed, converting minutes to perform the payroll calculation can be a straightforward way, which we will see how one by one.
Though there is cutting-edge automated software smoothly to run the salary transactions, a small business or startup may not necessarily afford them. Converting the minutes into decimals can be a ray of enthusiasm and more profitable for performing manual salary calculations under such conditions.
Moreover, it will help run the hourly employee’s payment, when you have to calculate the salary for the exact hours they have worked. Thus it is essential to learn how to convert the minutes into equivalent decimals, payroll conversion rates, and techniques to store and track the records.
If you are using the wrong method for calculating the minutes, you must be overpaying or underpaying the employees, causing you to trigger wage violations without your awareness.
According to the reports on Indian employees by moneycontrol, 75% of employees are satisfied with their present jobs, while only 21.6% are satisfied with their salary.
For example, if you calculate the wage for 15 hours and 23 minutes and consider 15.23 for math, it is the wrong way. You should convert the minutes into the probable decimal count and go ahead.
Thus it is essential to understand the usefulness of converting the corresponding minutes to run the payroll.
Moving ahead in considering the steps to convert the minutes into decimal points, the primary stage begins with how you consider the total working hours of the employees.
Analyze whether you use actual hours or round it off to the nearest value. If you consider the rounding of total worked hours, better ensure no wage violations are triggered, and employee satisfaction is improved.
Further, here are the fundamental steps to ensure that minutes are calculated accurately.
For the payroll calculation, the first thing you should approach is to gather the total worked hours of all the salaried employees, whether they are full-time or part-time, based on the time and attendance information.
The worked hours can be considered as either of the two:
Whether the company uses actual hours or rounded hours, it is supposed to gather the timesheet, leave, and attendance management details of its employees. For the companies using biometric systems, the details can be obtained from the hardware, the ones using manual attendance know how to store and use it, and that with the software does not have to bother at all.
The salary calculation of both the methods differ, but the company can go they follow. The considerations of them are like:
From your timesheet management, compile the information of punch in and out for the time you need to calculate.
For example, consider the following table of punch in and out timings of your employee for a company working 9:00 to 18:00. Here the payroll calculation of working hours starts from 9:00.
|Punch In||Punch Out||Total Hours|
On calculating the total hours and total minutes, it will be:
Total hours = 9+8+8+8+9+9 = 51 hours
Total minutes = 55+58+49+13+1+0 = 176 minutes
On compiling both, the total working hours of an employee will be 53 hours and 56 minutes.
Many a time, due to hard mathematical pay calculations, the employer applies the rounding method to round up/ down the minutes to ease the process. According to the laws, a rounding up to the nearest value is allowed to the employer.
For instance, if the employee’s punch is at 9:07, you can round down to the value of 9:00. While if it is 9:13, you can round up the value to 9:15. Similar applies to the start and finish hours of the company. However, this cannot be applied to the total working hours.
In rounding policy, ensure the compliance of the laws to avoid inflicting wage violations.
For example, consider the attendance data of an employee.
|Punch In||Rounding Punch In||Punch Out||Rounding Punch Out||Total Hours||Rounded Hours|
After rounding the hours, the calculation will go as: Total hours = 10 + 9 + 9 + 9 + 9 + 9 = 55 hours Total minutes = 15 minutes
Look how simple it gets to calculate the payroll. The worked hours for payroll calculation are 55 hours and 15 minutes.
Here comes the definitive step of converting the total minutes into decimals for errorless transactions. It is as easy as eating an ice-cream unless you eat it before it melts. Just divide the minutes by 60, and there is the result.
Like in the above actual hour’s wage calculation, if we convert the 56 minutes into decimals, it will be 56 / 60 = 0.93. Afterward, you can directly add it to the hours, and the total hours are obtained.
To get this quickly, here is the minute conversion chart.
|Minute Conversion Chart|
|Convert minutes into decimals|
Adding the minutes to actual hours in the previous example: Final total hours = 53 hours and 56 minutes = 53.93 hours
Adding the minutes to round up hours in the previous example: Final total hours = 55 hours and 15 minutes = 55.25 hours
Finishing the working hours’ pay calculation, you can multiply it with the hourly wage according to your company with the finalized hours. This result will be the employee’s gross salary. Let’s consider the above example, and the hourly rate of employees is 80 ₹.
Considering actual hours: 80 * 53.93 = 4314.4 ₹
Considering rounded hours: 80 * 55.25 = 4420 ₹
For finding a monthly salary, you can consider the time and attendance data and calculate the salary likewise.
The last part that wraps up your payroll math is to transfer the salary to the employees. As it is the final step, you don’t want to mess that up even with a small mistake.
Brush up your government laws and distribute the payment according to the most efficient and beneficial payment option for your employees. Don’t make them feel unsatisfactory to be with your company. It also helps you in avoiding wage violations.
The calculation of payroll shown above can be stored and tracked in ways such as software, manually, or through excel sheets. But what matters the most is to ensure accurate payroll processing. These methods can be defined more based on the type of your company rather than considering the usefulness. Though you are a small, medium, or large enterprise, you must be aware of these three methods and use the most satisfactory one.
As the method includes pen and paper-based math, it is less useful in this advanced era of technologies. Also, this method is most prone to errors due to human intervention and will consume a lot of time in payroll calculation.
Manual processing and storing can take a lot of time. But if you don’t want your budget to be compromised, you can use the manual methods. The person supposed to run the payroll must know the procedures and laws that can be used for bringing more efficiency to the system.
Using excel sheets is also useful, but don’t get confused in the maze of rows and columns. Plus, excel sheets can be a victim of data theft. However, excel sheets can help you distribute the hours, minutes, and other conversions efficiently and quickly into the sheets.
Update the sheets after every payroll. But ensure to double it, as human presence can bring error. Also, ensure that you are considering the laws that are made.
The most effective and error-free solution to all your needs is a cloud-based payroll solution. If you are used-to to the sheets, you can integrate them with the software to obtain the result in seconds after the click.
Moreover, the software will calculate and convert the rates that you need without any human hand. Additionally, the salary systems can be pre-integrated with time and leave management solutions. This way, the system can directly gather the data it needs.
The cloud solutions come at a reasonable price because you can use them without any mismanagement and ill-functioning once you buy them in the long run, thus giving you a better option for your budget limitation.
Payroll calculations can be confusing and time-consuming, but choosing the right method can help the company to bring more productivity and encouragement. If you are handling your payroll by hand, ensure to use the conversion chart for a faster transaction. Salary distribution is a kind of function that satisfies the employees most. If there are any errors, the company will welcome wage violation complaints, which one never appraises.
As this technique can be applied for the computation of both actually attended hours and rounded up hours, you can have a comprehensive system for running payroll. Even you can use the method to all kinds of employment categories, whether it is full-time or part-time.
In one way, it readily helps in finding a faster path for the payment of the workforce. On the other hand, it helps employees a guaranteed income without errors, thus increasing their trust and loyalty to the organization. The guide to convert minutes into decimals can help employers deliver a perfect output regardless of the storing and tracking method they use.