How to Convert Excel Clock Times to Decimal Hours for Accurate Payroll

Excel timesheets record clock times, but payroll systems require durations expressed as decimal hours, making direct subtraction of start and end times insufficient. The core formula multiplies the time difference by 24, since Excel stores time as a fraction of a day, and any unpaid breaks must be subtracted before that conversion. A common error is treating 7 hours 30 minutes as 7.30 instead of the correct 7.50, since the decimal portion represents a fraction of an hour, not a minute count. Overnight shifts require a MOD function or a conditional day-addition to avoid negative results from standard subtraction. Once daily totals are converted to decimals, weekly sums and overtime calculations using standard Excel formulas become straightforward and payroll-accurate.