- 1). Calculate all the hours the employee works during each day of the pay period. An employee's time begins when he arrives at work and begins performing his job duties. An employee's time ends for the day when he clocks out and goes home.
- 2). Check the employee's hours to verify the paid lunch hour has been included in your calculation. For example, if your employee works from 9 a.m. to 5 p.m. and is paid for her lunch hour, the employee's payroll hours for the day add up to 8 hours.
- 3). Add your daily hour calculations for each employee for the number of days in the payroll period. For example, if you have a bi-weekly pay period, employees are paid every other week. There are up to 14 days in a bi-weekly pay period. Although each employee may not work every day in the pay period, your payroll calculations must include hours from each work day in the pay cycle.
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