How to Convert Time to Decimal for Payroll
A complete step-by-step guide for payroll managers, HR departments, and business owners who need to convert employee time from hours:minutes to decimal format.
Step 1: Record Clock-In and Clock-Out Times
Start with the raw time data. Example: Employee clocks in at 7:53 AM and out at 4:22 PM.
Step 2: Calculate Total Time Worked
Subtract start from end: 4:22 PM − 7:53 AM = 8 hours 29 minutes.
Step 3: Subtract Unpaid Breaks
If the employee took a 30-minute unpaid lunch: 8h 29m − 30m = 7 hours 59 minutes.
Step 4: Convert to Decimal
Divide the minutes by 60 and add to the hours:
Step 5: Apply Rounding (If Required)
Under the 7-minute rule (rounding to nearest 15 minutes): 7.98 rounds to 8.00 because 59 minutes ≥ 53 minutes (the 8-minute threshold past :45).
FLSA Rounding Rules
The Department of Labor allows rounding to the nearest 5, 6, or 15 minutes, as long as rounding practices average out fairly over time and do not systematically shortchange employees.
Quick Reference: Minutes to Decimal
5m
0.08
10m
0.17
15m
0.25
20m
0.33
25m
0.42
30m
0.50
35m
0.58
40m
0.67
45m
0.75
50m
0.83
55m
0.92
60m
1.00
Common Payroll Mistakes to Avoid
- • Writing 8.30 for 8 hours 30 minutes — The correct decimal is 8.50
- • Forgetting to subtract lunch — Always deduct unpaid breaks before converting
- • Using decimal for minutes — 15 minutes = 0.25, not 0.15
- • Inconsistent rounding — Pick a rounding rule and apply it uniformly to all employees