Why decimals
You cannot multiply 37:45 by $18 directly, so time is converted to a decimal first: 45 minutes ÷ 60 = 0.75, so 37:45 becomes 37.75 hours. 37.75 × $18 = $679.50.
The usual mistake
| Time | Right | Common wrong answer |
|---|---|---|
| 7:30 | 7.50 | 7.30 |
| 8:15 | 8.25 | 8.15 |
| 6:45 | 6.75 | 6.45 |
| 37:45 | 37.75 | 37.45 |
Using 37.50 instead of 37.75 would change the pay by $4.50 at $18 an hour.
Rounding
Most systems round decimal hours to two places, so a single minute is 0.02 hours (0.0167 exactly). Your employer’s timekeeping policy decides how punches are rounded, so check it. See the full decimal time chart.