How Is Time Converted?
One of the most common questions we hear is how to convert standard hours & minutes format (e.g. 4:59) to decimal hours (e.g. 4.98). Hours & minutes are the standard format we use to tell time, while decimal hours are most commonly used to calculate hourly wages for payroll. Converting time may seem confusing at first, but once you understand the math, it's quite simple.
To properly convert time, take the total number of minutes and divide them by the number of minutes in an hour (60). For instance, 4 hours and 23 minutes is a total of 263 minutes. Divide 263 by 60 and you will get 4.38 (in payroll, up to two decimals are counted). A simpler way to handle this is to set the 4 hours aside and divide just the minutes by 60; in this case 23 divided by 60 equals 0.38. Put the hours together with the decimal hour to arrive at 4.38. Once time is in decimal hour form, payroll can multiply decimal hours with the hourly wage and arrive at gross pay (e.g. 4.38 x $14.50/hr = $63.51).
If you would rather not do the math every time, here is a simple time conversion chart - bookmark it for next time!