Employee timesheet template: hours, breaks and overtime done right
By the BizDocs Studio team · Updated
- •A usable timesheet records date, time in, time out and unpaid break for every shift, then totals hours per day and per workweek.
- •Overtime is tested per workweek, not per pay period. A biweekly period of 44 + 36 hours owes 4 overtime hours even though it totals 80.
- •Overnight shifts need time math that wraps past midnight: 10:00 PM to 6:30 AM is 8.5 hours before the break, not minus 15.5.
- •Only unpaid meal breaks come off the clock. Short rest breaks are normally paid time.
- •Have the employee and a supervisor sign each pay period's timesheet and keep it with your payroll records.
A timesheet looks simple until payday. Then the overnight cleaner shows negative hours, the cook who worked 44 hours one week and 36 the next gets no overtime, and nobody remembers whether Tuesday's lunch was taken. Many simple timesheet templates miss these three cases.
This guide shows what a timesheet for hourly employees should record, how to do the time math by hand, how overtime works when you pay every two weeks, and the mistakes that cost small employers back pay. It works with paper. At the end is the spreadsheet we sell if you want the math done for you.
What an employee timesheet should record
Federal wage-and-hour rules require employers to keep accurate records of hours worked each workday and each workweek for non-exempt (hourly) employees, and many states add their own rules. A timesheet that only shows a weekly total is hard to defend if an hours dispute ever comes up. Record each shift:
- Employee name and ID, role and hourly rate
- Pay period dates and the day your workweek starts (for example Sunday)
- Date and day of each shift
- Time in and time out, to the minute
- Unpaid meal break minutes, including 0 when no break was taken
- Hours worked, split into regular and overtime
- Paid time off hours, kept separate from hours worked
- Employee and supervisor signatures with dates
How to calculate hours worked
Convert times to hours and subtract. 6:00 AM to 2:30 PM is 8.5 hours. Take off the unpaid meal break (30 minutes) and the employee worked 8.0 hours. Convert minutes by dividing by 60: 7 hours 45 minutes is 7.75 hours, not 7.45.
Overnight shifts are where spreadsheets go wrong. 10:00 PM to 6:30 AM gives minus 15.5 hours if you just subtract. Add 24 hours whenever the out time is earlier than the in time: 6.5 - 22 + 24 = 8.5 hours, less a 30-minute break = 8.0. In Excel or Google Sheets, =MOD(out-in,1)*24 does this for you.
Mon 6:00 AM - 2:30 PM, 30 min break = 8.00 hrs
Tue 6:00 AM - 2:30 PM, 30 min break = 8.00 hrs
Wed 6:00 AM - 3:15 PM, 30 min break = 8.75 hrs
Thu and Fri 6:00 AM - 2:30 PM, 30 min break = 8.00 hrs each
Sat 7:00 AM - 12:00 PM, no break = 5.00 hrs
Week total 45.75 hrs = 40.00 regular + 5.75 overtime
Gross pay: 40 x $18.00 = $720.00, plus 5.75 x $27.00 = $155.25, total $875.25
Overtime is counted per workweek, not per pay period
Under the federal rule, non-exempt employees earn overtime for hours over 40 in a workweek, at 1.5 times their regular rate. A workweek is a fixed, repeating period of seven days that you choose, such as Sunday through Saturday. Hours cannot be averaged across two weeks, so a biweekly pay period has to be checked one week at a time.
| $20.00/hr employee | Week 1 | Week 2 | Pay period |
|---|---|---|---|
| Hours worked | 44 | 36 | 80 |
| Overtime owed | 4 | 0 | 4 |
| Averaged (wrong) | 80 x $20 = $1,600.00 | ||
| Per workweek (right) | 76 x $20 + 4 x $30 = $1,640.00 |
Semi-monthly payroll (1st-15th, 16th-end) adds a twist: workweeks cross the pay period boundary. Count the week's hours in order. The hours past 40 are overtime on the day they happen, and they are paid in the period that contains that day.
Paid time off, holidays and sick pay are paid but are not hours worked, so they do not count toward the 40 unless your own policy says otherwise.
Weekly schedule, timesheets with overtime, PTO balances and attendance for up to 50 hourly employees.
Daily overtime, breaks and rounding: check your state
A few states also count overtime by the day (commonly hours over 8 in a workday), and some add double time or seventh-day rules. Meal and rest break rules also vary by state and city. If a daily rule applies, hours already paid as daily overtime are not counted again toward the weekly 40.
Rounding punches to the nearest 5, 6 or 15 minutes is allowed under federal rules only if it is neutral over time, rounding both up and down. Recording exact minutes is the simplest way to stay safe. Set the rules for your location and confirm them with your payroll provider.
Paper, spreadsheet or app?
| Option | Good for | Watch out for |
|---|---|---|
| Paper timesheet | 1 to 3 employees, one location | Math errors, lost sheets, no PTO balances |
| Spreadsheet template | Small teams, roughly 5 to 30 hourly staff | Templates that average overtime or break on overnight shifts |
| Time clock app | Many locations, GPS or kiosk clock-in | Monthly per-user fees that grow with the team |
Mistakes that lead to back pay
- Averaging two weeks of hours on a biweekly timesheet instead of testing each workweek
- Deducting a meal break the employee did not take (record 0, not blank)
- Treating short rest breaks as unpaid time
- Letting overnight shifts produce negative hours, then fixing them by hand
- Writing 7.45 for 7 hours 45 minutes instead of 7.75
- Changing the workweek start day to move overtime around
- Paying overtime at the base rate when the regular rate should include non-discretionary bonuses
- Skipping signatures, so there is no record that the employee agreed with the hours
Connect the timesheet to the schedule and PTO
The timesheet answers what happened. Two more records keep it honest: the weekly schedule (what was planned, and what it should cost against your labor budget) and the PTO log (who was off, paid or unpaid). When all three live in one file, a sick day shows on the schedule, the timesheet and the PTO balance without typing it three times.
Our Employee Timesheet, Schedule & PTO Tracker does that in Excel or Google Sheets. You type each shift once. It counts overtime per workweek for weekly, biweekly or semi-monthly payroll, handles overnight shifts and unpaid breaks, and prints a one-page signed timesheet per employee. It also tracks PTO accrual with caps, a max-carryover figure for next year, and logs attendance on a yearly calendar.
Frequently asked questions
What is the formula for hours worked in Excel?
With time in in column B and time out in column C, =MOD(C2-B2,1)*24 gives hours and handles shifts that cross midnight. Subtract the unpaid break in hours, for example -0.5 for 30 minutes.
Is biweekly overtime counted over 80 hours?
No. Overtime is owed for hours over 40 in each workweek, so check week 1 and week 2 separately. 44 + 36 hours owes 4 overtime hours, 41 + 41 owes 2, and 40 + 40 owes none.
Does paid time off count toward overtime?
Under the federal rule, no: PTO, holidays and sick pay are not hours worked. Some employers count them by policy, and union contracts or state rules can differ.
How long should I keep timesheets?
Keep payroll records and the time cards behind them for several years. Federal and state retention periods differ, so ask your payroll provider or accountant for the period that applies to you.
Should employees sign their timesheets?
It is good practice. A signed timesheet shows the employee reviewed the hours and breaks before payday, which helps if a dispute comes up later.
This guide is general information for US small businesses, not legal advice. Rules vary by state and city; have a local attorney review contracts and notices before use.
Weekly schedule, timesheets with overtime, PTO balances and attendance for up to 50 hourly employees.